CHAPTER 35

H.P. 9 - L.D. 2

An Act to Extend the Time to Pay a Premium to the Insured

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §1449, as enacted by PL 1997, c. 457, §23 and affected by §55, is repealed and the following enacted in its place:

§1449.__Reporting and accounting for premiums

All premiums and return premiums received by an insurance producer are trust funds received by the licensee in a fiduciary capacity in accordance with this section.

1.__Return premiums; accounting and payment to an insured.__ The licensee shall account for and pay the return premiums to the insured or apply the return premiums to outstanding balances of any insured within 30 days from the date of receipt.__The date of receipt is the date the money is actually received or the date the credit is posted by the insurer, health maintenance organization, fraternal benefit society or nonprofit hospital or medical service organization to the licensee's account.

2.__Premiums; accounting and payment to an insurer.__The licensee shall promptly account for and pay premiums to the insurer, health maintenance organization, fraternal benefit society or nonprofit hospital or medical service organization in accordance with the contract between the insurer, health