An Act To Eliminate The Provision Of The Maine Workers' Compensation Act Of 1992 That Allows An Employer Member Of A Group Self-Insurer To Insure Its Employees Through A Fronting Arrangement

LD 131 eliminates a provision in Maine's workers' compensation law that allowed employers in group self-insurance plans to use a "fronting arrangement." This arrangement permitted a separate insurance company to handle the paperwork for the group's coverage while the employer remained responsible for claims. The bill repeals two specific sections of the law (39-A MRSA §403, sub-§4-B and sub-§4-C) that enabled this practice. As a result, employers in Maine who are part of group self-insurance programs can no longer use fronting arrangements for workers' compensation coverage.