Maine lawmakers are set to discuss a new bill that would let members of the Mennonite faith self-insure for their motor vehicle insurance. This proposal comes from Representative Steve Foster, who introduced it on behalf of his constituents. The Mennonites believe that traditional insurance goes against their religious principles, which emphasize self-reliance and mutual support within their community.
The bill aims to allow qualifying religious groups to meet state requirements for financial responsibility through self-insurance instead of purchasing standard insurance. Members of these groups could use a self-insurance certificate issued by the state to register their vehicles or horse-drawn carriages.
Foster first proposed a similar bill in 2019, initially focusing solely on the Mennonites. However, he later decided to broaden the bill to include all religions, even though he was unsure if other faiths shared similar beliefs. After further research, he feels confident that the Mennonites are the only group in Maine with such tenets that would allow them to meet the state’s financial responsibility laws without relying on traditional insurance.
Typically, drivers in Maine prove their financial responsibility by buying insurance and showing proof during vehicle registration. This bill would create an additional option for religious organizations that believe in mutual financial assistance to help their members fulfill their obligations.
Under the proposed law, a religious organization would need to provide proof of financial responsibility to the state, either through an irrevocable letter of credit or by depositing money and securities. The required amounts would vary depending on the number of vehicles owned by the organization.
If passed, Maine would join 18 other states that have similar provisions for religious groups seeking to self-insure. Foster believes the Mennonites have successfully managed self-insurance in other states, which gives him confidence in the proposal. He noted that the Mennonites have consistently covered claims in other states, including a few minor claims in Maine.
Senator Stacy Guerin also supports the bill, emphasizing the need for flexibility for organizations that don’t fit the traditional insurance model. She assured that the bill includes safeguards to ensure public safety, allowing the state to revoke self-insurance certificates if organizations fail to meet financial requirements.
However, the bill faces opposition from the state’s Secretary of State Shenna Bellows, who expressed concerns about administrative challenges and potential legal issues. Sandra Darby from the Bureau of Insurance warned that the bill could allow religious groups to operate like insurers without the necessary regulations to protect the public.
Mennonite leaders have voiced their commitment to self-sufficiency and community support, explaining that they prefer not to use the court system or traditional insurance. They believe that their way of life, which avoids reliance on government assistance, is more costly in terms of benefits not received than what they save on insurance premiums.
Foster noted that the number of Mennonites in Maine is relatively small, but their community is growing as more relocate from other states. They are known for being responsible neighbors who care for their properties and contribute positively to their communities.
The bill is currently under consideration in the Maine legislature, having received a divided report from the insurance committee. As it moves forward, it will need to address the concerns raised by state officials and gain broader support to advance.