An Act To Amend The Provisions Of The Maine Workers' Compensation Act Of 1992 Governing Requirements For Self-Insurers

LD 1195 amends Maine's Workers' Compensation Act to update security requirements for self-insurers (businesses that self-fund workers' compensation instead of purchasing insurance). The bill specifically clarifies how group self-insurers can use irrevocable standby letters of credit as security, limiting their use to amounts not exceeding 10% less than fully funded trust levels, while requiring trust assets to cover 65% of projected claims. It mandates that letters of credit must be the financial institution's sole obligation, cannot be contingent on reimbursement, and automatically renew unless 90 days' notice is given. If a financial institution's rating drops, self-insurers must replace the letter of credit with equivalent security approved by the Superintendent of Insurance.