CHAPTER 518
H.P. 1550 - L.D. 2053
An Act to Clarify the Treatment of Members of Limited Liability Companies Under the Workers' Compensation Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 39-A MRSA §102, sub-§11, ¶A, as amended by PL 1999, c. 364, §1, is further amended by amending subparagraph (5) to read:
(5) Except for persons engaged in harvesting of forest products, the parent, spouse or child of a sole proprietor who is employed by that sole proprietor or the parent, spouse or child of a partner who is employed by the partnership of that partner or the parent, spouse or child of a member of a limited liability company may state, in writing, that the parent, spouse or child waives all the benefits and privileges provided by the workers' compensation laws if the board finds that the waiver is not a prerequisite condition to employment;
Sec. 2. 39-A MRSA §102, sub-§11, ¶B, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 and 11, is amended to read:
B. "Employee" includes, if the person elects to be personally covered by this Title, any person who regularly operates a business or practices a trade, profession or occupation, whether individually or in partnership or association with other persons or as a member of a limited liability company, whether or not the person hires employees. Such a person shall elect personal coverage by insuring and keeping insured the payment of compensation and other benefits under a workers' compensation insurance policy. The insurance policy must clearly indicate the intention of the parties to provide coverage for the person electing to be personally covered. The insurance company shall file with the board notice, in such form as the board approves, of the issuance of any workers' compensation policy to a person electing personal coverage. That insurance may not be cancelled within the time limited in that policy for its expiration until at least 30 days after mailing a notice of the cancellation of that insurance to the board and the person electing personal coverage. In the event that the person electing personal coverage has obtained a workers' compensation insurance policy from another insurance company, and that insurance becomes effective prior to the expiration of the 30 days, cancellation is effective as of the effective date of the other insurance. The Superintendent of Insurance is authorized to review for approval, at the superintendent's discretion, an appropriate classification for this class of persons and a reasonable rate.
Effective July 25, 2002, unless otherwise indicated.
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