LD 893

132nd MAINE LEGISLATURE
  FIRST REGULAR SESSION-2025
Legislative Document  No. 893
S.P. 381  In Senate, March 4, 2025
  An Act to Exempt Nonprofit Agricultural Membership
  Organizations from Insurance Requirements
   Reference to the Committee on Health Coverage, Insurance and Financial Services
suggested and ordered printed.
  DAREK M. GRANT
  Secretary of the Senate
Presented by Senator TIMBERLAKE of Androscoggin.
Cosponsored by Senator: BLACK of Franklin, Representatives: COOPER of Windham, CRAY
of Palmyra, GUERRETTE of Caribou.
  Printed on recycled paper
1 Be it enacted by the People of the State of Maine as follows:
2     Sec. 1. 24-A MRSA §704, sub-§1, as amended by PL 2011, c. 192, §1, is further
3 amended to read:
4     1. Health insurance. For purposes of this Title, except as provided in subsection
5 subsections 2 and subsection, 3 and 4, "health insurance" means insurance of human beings
6 against bodily injury, disablement or death by accident or accidental means, or the expense
7 thereof, or against disablement or expense resulting from sickness, and every insurance
8 appertaining thereto, including provision for the mental and emotional welfare of human
9 beings by defraying the costs of legal services only to the extent provided for in chapter 38.
10     Sec. 2. 24-A MRSA §704, sub-§4 is enacted to read:
11      4. Nonprofit agricultural membership organization. As used in this Title and Title
12 24, the use of "health insurance" and related terms such as "accident and health insurance,"
13 "accident and sickness insurance," "carrier," "health," "health benefit plan," "health care,"
14 "health insurer" or "insurer" do not include, unless specifically provided otherwise in the
15 law, a nonprofit agricultural membership organization providing health care benefits in
16 accordance with this subsection, and a nonprofit agricultural membership organization
17 providing health care benefits in accordance with this subsection may not be considered to
18 be engaged in the business of insurance for the purposes of this Title.
19     A. For the purposes of this subsection, "nonprofit agricultural membership
20     organization" means a statewide nonprofit agricultural membership organization that
21     is exempt from taxation under the federal Internal Revenue Code of 1986 and that:
22(1) Has been in existence continuously since December 31, 1951;
23(2) Provides health care benefits coverage for the payment of medical expenses to
24or for members of the organization, their dependents and others; and
25(3) Conducts an annual audit that is performed by an independent certified public
26accountant in accordance with generally accepted accounting principles and that is
27made available to the public upon request.
28     B. At the time an initial application for coverage for health care benefits is taken with
29     respect to new applicants and upon renewal of coverage with respect to persons
30     previously covered, the nonprofit agricultural membership organization shall provide
31     to the applicant or covered person a written notice stating that:
32(1) The coverage is not provided by an insurance company;
33(2) The plan is not subject to the laws and rules relating to insurance companies;
34(3) The plan is not under the jurisdiction of the superintendent; and
35(4) If the plan does not pay medical expenses that are eligible for payment under
36the plan for any reason, the individuals covered by the plan may be liable for such
37expenses.
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1SUMMARY
2     This bill exempts statewide nonprofit agricultural membership organizations that
3 provide health care benefits and that meet certain requirements from the definition of
4 "health insurance" under the Maine Insurance Code.
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