Sec. 1. 24-A MRSA §2717-A, as enacted by PL 2003, c. 321, §1, is repealed and the following enacted in its place:

§2717-A.__Disability benefit offsets

1. Disclosure to applicants. At or before the time of application for any policy subject to this chapter that provides disability income benefits, the insurer shall provide the applicant with a clear and conspicuous written notice, on the application form or in a separate document, that accurately explains to the applicant all types of other sources of income that may result in a reduction of the benefits payable under the policy.

2. Recovery of disability benefit overpayments.__For claims filed after January 1, 2006, an insurer that is entitled to reduce disability income benefit payments when the insured receives income from other sources and that is entitled to recover overpayments through offsets against current payments to the insured may not recover such overpayments at a rate greater than 10% of the net benefit per benefit payment period unless:

A.__The insurer has complied with the requirements of subsection 1;

B.__The insurer effects the offset of benefits within 60 days of notice to the insurer that the insured is receiving or is entitled to receive income that may result in a reduction of benefits payable under the policy;

C.__The overpayment did not result from the insurer's miscalculation of benefit reductions or the insurer's miscalculation of benefits payable under the policy; and

D.__The insurer provided the insured with written notice of contract provisions permitting benefit reductions within 60 days of the date disability benefits commenced.

Sec. 2. 24-A MRSA §2829-A, as enacted by PL 2003, c. 321, §2, is repealed and the following enacted in its place:

§2829-A. Disability benefit offsets

1. Disclosure to persons eligible for coverage. For any policy or contract subject to this chapter that provides disability income benefits, if the benefits under that policy or contract are subject to reduction due to other sources of income, then the insurer shall include in any written enrollment material