Maine Weighs What to Do When Religion Collides With Auto Insurance

Maine lawmakers today are expected to consider a measure that would allow followers of the Mennonite religion to self-insure for motor vehicle insurance.

Rep. Steve Foster (R-Dexter) introduced the bill on behalf of his Mennonite constituents who say insurance violates their religious principles.

“Mennonites believe they are to provide for their own and that they must stay from ‘under the yoke’ of the government or insurance companies and not depend on others outside of their faith to provide for them,” explained Foster, who has submitted similar measures over the past six years.

The bill would allow qualifying religious organizations to satisfy the state’s financial responsibility requirements for operating a motor vehicle through self-insurance. A member of the qualifying religious organization would be able to use a certificate of self-insurance from the secretary of state as evidence of financial responsibility to register a motor vehicle or horse-drawn carriage.

Foster said that when he first proposed such a measure in 2019, he specified it would apply only to the Mennonites, as he had seen done in some other states. Then he determined he might have better results if he broadened it to include all religions, even though he didn’t know of any others with similar beliefs at that time. Now, after years of looking at this issue, he said he is “most confident” that the Mennonites are the only religious group in his state with a tenet of their faith that “makes them willing to meet the requirements” of the financial responsibility law, avoid utilizing group auto insurance, and pay all claims themselves.

Most people meet the financial requirements by purchasing insurance coverage for their motor vehicles and providing proof of that insurance annually when they register their vehicles. However, the law also provides a process through which an individual may demonstrate financial responsibility through the deposit of money or securities. Foster’s proposal would create a new option for members of a religious organization that holds a common belief in mutual financial assistance in time of need to help members meet financial obligations they cannot meet on their own.

Proof of Responsibility

Under the bill, a religious organization would be able to file with the secretary of state satisfactory proof in the form of an irrevocable letter of credit from a qualified financial institution or the deposit of money and securities as provided that the religious organization meets the following minimum requirements: For 5 to 10 motor vehicles, the amount must be equal to a combined single limit of $250,000; and for more than 10 motor vehicles, the amount must be increased by $2,500 per motor vehicle.

If Maine were to pass the measure, it would join 18 other states with some form of accommodation for religious groups that want to self-insure. According to Foster, one of the reasons he believes it will work is that Mennonites have made it work in the other states. “There is only one reason Mennonites continue to have this opportunity for many years in other states. It’s because they have not failed to cover claims when they occurred and that is true even today in the state of Maine for the very few claims and issues they’ve had here,” stated the Republican lawmaker.

Another backer, Senator Stacy Guerin (R-Piscataquis) acknowledged the importance of making sure there is still financial responsibility while providing flexibility.

“This flexibility is important for organizations that may not fit into the standard insurance model but still need to make sure they’re following the rules,” Guerin testified. “While this bill gives religious organizations the ability to self-insure, it also ensures that public safety isn’t compromised. If an organization stops meeting the financial requirements, the state can step in and revoke their self-insurance certificate. This will keep things in check to make sure everyone on the road is covered.”

The measure emerged with a divided report out of the insurance committee. It is now before the full House and Senate for consideration. There remain obstacles to its advancing any further again, including the opposition from the secretary of state and the state’s financial services regulator.

State Opponents

Secretary of State Shenna Bellows, who is also the state’s chief motor vehicle officer, has warned that the bill presents administrative challenges and costs as well as potential legal challenges including “possible unintended consequences that may be detrimental” to a member of the qualifying organization or to the public at large.

Sandra Darby, property/casualty actuary at the Bureau of Insurance, warned that the bill would “allow organizations to conduct insurance-like activities while avoiding the insurance regulations that protect the public” from financial harm. “Although we respect these beliefs, we are concerned that the bill would entrust religious organizations with the responsibilities of an insurer without the regulatory guardrails that keep insurers accountable to their insureds and to claimants,” Darby told lawmakers.

Mennonite Leaders

A letter from three Mennonite leaders from the Corinna/Dexter area explained that they believe it is their responsibility to supply for their own needs as individuals and as families as much as they can. “We believe the whole system of insurance runs counter to various of these principles,” they wrote.

The leaders explained that Mennonites do not use the courts to bring lawsuits upon others, do not hire others to make lawsuits for them. and do not want insurance companies or anyone else to represent them in court or to fight for them. Instead, they “may make a humble plea but then are willing to suffer wrong themselves.”

The church leaders stressed that they are not seeking any unfair advantage, noting that while they have been exempted from paying Social Security taxes, they have also signed away all rights to receive Social Security benefits. They pay other taxes yet fund their own schools without taking any help from the government. None of the church’s members receive any part of public welfare or other forms of federal or state handouts.

“This no-welfare, no-insurance way of life costs much more in terms of benefits not taken, than what it saves in terms of vehicle insurance premiums not paid out,” they maintain.

One Mennonite minister wrote that a number of years ago one of his sons was involved in a vehicle accident in which he was at fault. In order to get the matter settled peaceably the organization agreed to more than $100,000 to close the claim. “With the help of various individuals and churches, that was all made up and paid for in a fairly timely manner,” he wrote.

According to Foster, the number of Mennonites in Maine is low compared to other parts of the country. Members in central Maine’s Corinna area currently own about 15 vehicles, while others in Brownfield own up to 70. But he said the number of Mennonites relocating to Maine from other states has been growing. “They are good neighbors who care for their families, keep up their properties, and improve their farm land, often purchasing old farms that have been abandoned to that use,” he maintained.”They pay their taxes and provide for others in need while asking for no help from the government.”

Photo: Maine State House in Augusta

Topics Auto Maine