Sec. 1. 39-A MRSA §403, sub-§1, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

1. Insuring under workers' compensation insurance policy. The employer may comply with this section by insuring and keeping insured the payment of such compensation and other benefits under a workers' compensation insurance policy. The insurance company shall file with the board notice, in the form required by the board, of the issuance of any workers' compensation policy to an employer. The insurance may not be cancelled within the time limited in such policy for its expiration until at least 30 days after the insurance company mails to the board and to the employer a notice of the cancellation of the insurance. In the event that the employer has obtained a workers' compensation policy from another insurance company, or has otherwise secured compensation as provided in this section, and such insurance or other security becomes effective prior to the expiration of the 30-day notice period, cancellation takes effect on the effective date of the other insurance or on receipt of security. An employer whose workers' compensation insurance is to be canceled or to expire without renewal shall notify the employer's employees at least 20 days before the date of cancellation or nonrenewal, unless the employer has secured insurance coverage from another insurance company.__An employer who fails to give the required notice commits a Class E crime.

SUMMARY

This bill requires employers to notify their employees when the employers' workers' compensation insurance policy is canceled or expires without being renewed, unless the employer has obtained insurance coverage from another insurance company. Failure to give the required notice is a Class E crime.