Sec. I-1. 24-A MRSA §2436, as repealed and replaced by PL 1987, c. 344, is amended to read:
§2436. Interest on overdue payments
1. A claim for payment of benefits under a policy or certificate of insurance against loss delivered or issued for delivery within in this State is payable within 30 days after proof of loss is received by the insurer and ascertainment of the loss is made either by written agreement between the insurer and the insured or beneficiary or by filing with the insured or beneficiary of an award by arbitrators as provided for in the policy, and a. For purposes of this section, "insured or beneficiary" includes a person to whom benefits have been assigned. A claim which that is neither disputed nor paid within 30 days is overdue, provided that if. If, during the 30 days, the insurer, in writing, notifies the insured or beneficiary that reasonable additional information is required, the undisputed claim shall is not be overdue until 30 days following receipt by the insurer of the additional required information; except that the time period applicable to a standard fire policy and to that portion of a policy providing a combination of coverages, as described in section 3003, insuring against the peril of fire shall must be 60 days, as provided in section 3002.
2. An insurer may dispute a claim by furnishing to the insured or beneficiary, or his a representative of the insured or beneficiary, a written statement that the claim is disputed with a statement of the grounds upon which it is disputed. The statement must be based upon a reasonable investigation of the claim and must include sufficient detail to permit the insured or beneficiary to understand and respond to the insurer's position. For purposes of this subsection, a claim for payments under a policy or certificate providing health care coverage is disputed if the insurer has denied the claim or has requested further information that is consistent with Bureau of Insurance Rule Chapter 850.
3. If an insurer fails to pay an undisputed claim or any undisputed part of the claim when due, the amount of the overdue claim or part of the claim shall bear bears interest at the rate of 1 1/2% per month after the due date.
4. A reasonable attorneys attorney's fee for advising and representing a claimant on an overdue claim or action for an overdue claim shall must be paid by the insurer if overdue benefits are recovered in an action against the insurer or if overdue benefits are paid after receipt of notice of the attorney's representation.
5. Nothing in this section prohibits or limits any claim or action for a claim which that the claimant has against the insurer.
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