An Act To Amend the Captive Insurance Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §6706, sub-§2-A, as enacted by PL 2011, c. 90, Pt. I, §4, is amended to read:
2-A. Association captive insurance company providing health insurance. An association captive insurance company that provides health insurance may elect to require, in its plan of operation, that all association members who participate in the health insurance be jointly and severally liable for the health insurance obligations of the association captive insurance company and meet the financial criteria and employer required wellness criteria established in the plan of operation. The joint and several liability of an association member that is a state or federally chartered financial institution that holds funds in a fiduciary capacity for citizens of this State; a municipality that has the power to tax to provide municipal services for its citizens; or a hospital licensed in this State that provides health care for citizens of this State may not exceed an amount per year equal to the premium for the most recently completed annual insurance period, or such other greater amount as may be established by the association captive insurance company. The wellness criteria may not have the effect of making health status a condition of eligibility for any association member. The superintendent may not require joint and several liability as a condition of approval of an application.
summary
This bill provides that the joint and several liability for a bank, municipality or hospital that is a member of an association captive insurance company is limited to an amount per year equal to the premium for the most recently completed annual insurance period or a greater amount as established by the association captive insurance company.