5. Insolvent insurer. "Insolvent insurer" means a member insurer:

A. Authorized to transact insurance in this State either at the time the policy was issued or when the insured event occurred; and

B. Against whom a final order of liquidation has been entered with a finding of insolvency by a court of competent jurisdiction.

Effective July 1, 1995, the workers' compensation residual market pool, as created by the Bureau of Insurance Rules, Chapter 440, is deemed an insolvent insurer.

Effective January 1, 2005, the workers' compensation residual market pool, as created by the Bureau of Insurance Rules, Chapter 440, is no longer deemed an insolvent insurer.

Sec. 3. 24-A MRSA §4438, sub-§1, ķA-1, as enacted by PL 1995, c. 289, §14, is amended to read:

A-1. Pay to the workers' compensation residual market pool the sum of $1,538,039 on or before February 15th, May 15th, August 15th and November 15th of each year beginning August 15, 1996 and continuing for 40 34 consecutive calendar quarters. Each payment made under this paragraph must be treated as the payment of a covered claim, except that the association may not seek reimbursement or recoupment from any source other than by assessments to member insurers. Member insurers are allowed to recognize assessments made pursuant to this paragraph in rates and premiums as provided in section 4447;

Sec. 4. Retroactivity clause. This Act applies retroactively to January 1, 2005.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill terminates the obligation of the Maine Insurance Guaranty Association to pay the Maine Workers' Compensation Residual Market Pool quarterly payments, since the last payment was November 15, 2004. These payments were adding $8,000,000 in