Bill > LD1195

This bill amends the Maine Workers' Compensation Act of 1992 to modify requirements for self-insurers, focusing primarily on the rules and procedures for financial security and letters of credit. The bill clarifies and updates regulations for how self-insured employers and groups can secure their workers' compensation obligations. Key changes include modifying the rules for irrevocable standby letters of credit, allowing more flexible funding of trust accounts, and establishing clearer procedures for when the Superintendent of Insurance can draw on these letters of credit. Specifically, the bill provides new guidelines for when a financial institution can be instructed to pay out a letter of credit, such as when workers' compensation obligations are not met, bankruptcy proceedings are initiated, or a letter of credit is not renewed. The bill also adjusts the confidence levels at which self-insurers must fund their trusts, potentially allowing some long-standing self-insurers to maintain lower funding levels. Additionally, the bill makes technical corrections to language related to out-of-state self-insurers and reinsurance carriers, and requires the Superintendent of Insurance to notify the workers' compensation board when self-insurance authorizations are terminated or suspended.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1195&snum=132