Bill > LD131

This bill eliminates two recently enacted subsections (4-B and 4-C) from Section 403 of the Maine Revised Statutes Annotated (MRSA) Title 39-A, which pertains to workers' compensation. Specifically, the bill removes provisions that previously allowed an employer who is a member of a group self-insurer to insure its employees through a "fronting arrangement" (a type of insurance setup where one insurance entity provides coverage on behalf of another). By repealing these subsections, the bill effectively prevents employers in group self-insurance arrangements from using fronting arrangements for workers' compensation insurance. The bill appears to be aimed at closing a specific insurance practice loophole that was recently created in the Maine Workers' Compensation Act of 1992, suggesting that the legislature believes these fronting arrangements are not in the best interest of workers or the state's workers' compensation system.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=131&snum=132