An Act to Allow a Qualifying Religious Organization to Self-insure for Automobile Insurance
Summary
LD 918 would create a new pathway for certain qualifying religious organizations to self-insure for automobile insurance purposes in Maine. The bill amends the state’s motor vehicle financial responsibility laws to allow the Secretary of State to issue a certificate of self-insurance to a religious organization that meets specified criteria, including recognition under federal tax law for religious groups, operation of at least five vehicles in the state, a history of meeting financial responsibility requirements, and proof of financial solvency. The organization would need to provide an irrevocable letter of credit or deposit of money and securities in amounts tied to the number of vehicles covered.
If approved, the certificate could be used by members of the qualifying religious organization as proof of financial responsibility when registering vehicles they own or operate. The bill also authorizes the Secretary of State to adopt routine technical rules, impose a limited application fee, and terminate self-insurance authority if the organization no longer qualifies or if judgments related to vehicle use remain unpaid. The self-insurance authority would not apply to certain categories of vehicles, including commercial vehicles, emergency vehicles, school buses, and rental vehicles.
Impact
The bill would amend Maine’s motor vehicle insurance and financial responsibility statutes by adding a new exemption and self-insurance mechanism for qualifying religious organizations. It would expand the Secretary of State’s authority to approve, regulate, and revoke self-insurance certificates, while also creating new documentation, solvency, and deposit requirements for eligible organizations and their members. In practice, the bill would affect religious organizations that operate multiple vehicles and seek to satisfy insurance obligations without purchasing conventional automobile insurance.
Sentiment
The voting history suggests the bill faced significant opposition in the Legislature. The House first rejected the measure on a majority ought-not-to-pass report by a narrow margin, and the Senate later accepted that same report. With no committee transcript available, the recorded votes indicate that the prevailing sentiment was against advancing the bill, though the close House vote suggests there was meaningful support for the proposal as well.
Contention
The main point of contention appears to be whether religious organizations should be allowed to opt out of standard automobile insurance requirements through self-insurance. Supporters likely viewed the bill as a narrow accommodation for faith-based groups with shared financial responsibility practices, while opponents appear to have been concerned about creating a special exemption from general insurance rules, the adequacy of financial protections for injured third parties, and the administrative burden of verifying eligibility and solvency. The close House vote indicates the issue was divisive, but the final legislative action shows the opposition ultimately prevailed.