The bill amends Maine's audit report, holding company, examination, actuarial certification, credit for reinsurance and risk-based capital standards to bring them more into conformity with the current versions of the National Association of Insurance Commissioners, or NAIC, model laws.

The bill brings the audit report law into conformance with NAIC standards; makes technical changes to the holding company law and adds a service of process provision and a requirement for information sharing between affiliates; establishes a procedural timetable for the issuance of examination reports; adds a reciprocity provision to the port of entry law; clarifies the trust requirements of the credit for reinsurance laws and enacts the "reinsurance-only" structure now in use by the NAIC; implements the NAIC's new health organization risk-based capital standards; and repeals certain obsolete exemptions in the audit report, credit for reinsurance and actuarial standards.

In addition, the bill provides a mechanism for service of process when a person required to appoint an agent fails to comply with that requirement, authorizes the redomestication of insurance corporations, consistent with the laws of most other states and eases restrictions on financial institutions seeking to issue letters of credit to workers' compensation self- insurers.