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Maine Amends Anti Subrogation Bill
On May 23, 2013
As you may recall, Maine recently introduced a bill, Maine Legislative Document 756, which attempted to eliminate Med Pay subrogation claims. This bill was recently amended to allow for the limited pursuit of subrogation claims. The new language would allow the casualty insurance policy to provide for Med Pay subrogation rights or priority over the insured when the insured’s awarded or settled damages exceed $20,000.
Although,
the amended language is restrictive and does not allow for the pursuit of all Med Pay subrogation claims where there is a responsible party, it does allow a carrier to pursue claims where the insured has settled with the tortfeasor or been awarded damages of more than $20,000.
Additionally, the amended language purports to give the carrier priority over the insured on allowed claims. This suggests the insured would not be able to assert the Made Whole Doctrine as a defense to the carrier’s right to recover. The bill appears applicable to only those cases where the insured is pursuing a claim against the responsible party.