Whereas, part of the Maine Workers' Compensation Residual Market Pool funding crisis resolution in 1995 required the Maine Insurance Guaranty Authority to make quarterly payments to the pool to make it solvent; and

Whereas, the Maine Workers' Compensation Residual Market Pool is financially solvent and no longer needs the Maine Insurance Guaranty Authority payments to meet its obligations; and

Whereas, the Maine Insurance Guaranty Authority payments create the need to assess other lines of insurance, including homeowner's and auto insurance, thereby burdening those lines with an additional $8,000,000 a year in unnecessary costs to consumers; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

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

Sec. 1. 24-A MRSA §2393, sub-§3, as enacted by PL 1995, c. 289, §11, is amended to read:

3. Payments by Maine Insurance Guaranty Association. The association shall pay to the pool $1,538,039 on or before February 15th, May 15th, August 15th, and November 15th of each year for 40 34 consecutive calendar quarters beginning August 15, 1996.

A. Each payment made by the association to the pool under this subsection is treated as a covered claim pursuant to section 4435, subsection 4, except that any provision or authority for the association to seek reimbursement or recoupment from any source other than by assessments to association member insurers does not apply. This section does not limit or impair a member insurer's right to recoupment under section 4447.

B. The quarterly payments by the association to the pool as required by this subsection must be made regardless of the financial condition or actual or projected cash requirements of the pool.