Sec. 1. 30-A MRSA §2351, sub-§4, as amended by PL 1989, c. 104, Pt. C, §§8 and 10, is further amended to read:

4. Quasi-municipal corporation or district. "Quasi-municipal corporation or district" means any governmental unit that includes a portion of a municipality, a single municipality or several municipalities and which that is created by law to deliver public services but which is not a general purpose governmental unit. "Quasi-municipal corporation or district" does not include School Administrative Districts school administrative districts or hospital districts. "Quasi-municipal corporation or district" specifically includes a nonprofit corporation established and operated by a municipality or municipalities for the sole purpose of providing multiple-peril homeowners liability insurance to the citizens of the municipality or municipalities comprising the corporation.

Sec. 2. 30-A MRSA §2358 is enacted to read:

§2358.__Creating municipal homeowners liability insurance

corporations

A nonprofit corporation may be created by a single municipality or a group of municipalities for the sole purpose of providing multiple-peril homeowners liability insurance to citizens of the municipality or group of municipalities.

1.__Requirements. A nonprofit corporation created under this section must be wholly owned and administered by a municipality or group of municipalities.__Each municipality or group of municipalities establishing a nonprofit corporation under this section must have its original charter endorsed at a public meeting or by public vote in accordance with chapter 121.__A nonprofit municipal corporation established under this section shall operate in__accordance with the other provisions of this chapter and is subject to the provisions of Title 24-A, chapter 41.

2. Annual reports.__A nonprofit municipal corporation established under subsection 1 shall submit reports on an annual basis to:

A.__The municipality or municipalities comprising the nonprofit corporation;

B.__The Superintendent of Insurance; and