02-031-560 Me. Code R. § 5
In addition to any statutory grounds that may exist, any violation of this rule is grounds for cancellation or nonrenewal provided that the employee leasing company or, if appropriate, the lessee, has been provided a reasonable opportunity to cure the violation.
If an employee leasing company has received notice that its workers' compensation insurance policy issued on a master policy basis will be canceled or nonrenewed, the leasing company shall notify by certified mail, within fifteen (15) days of the receipt of the notice, all of the lessees for which there is an employee leasing arrangement covered under the to-be-canceled policy.
If one or more workers compensation insurance policies issued with respect to one or more lessees are to be canceled or nonrenewed, the insurer or service carrier shall give any required notice to the lessor and to each affected lessee.
In the event that an employee leasing arrangement with a lessee is terminated, the lessee shall be assigned an experience modification factor which reflects its experience during the experience period specified by the approved experience rating plan, including, if applicable, experience incurred for leased employees under the employee leasing arrangements.
In the event that an employee leasing arrangement with a lessee is terminated and the experience of the lessee is commingled with that of other clients on a lessors master policy, then the experience of the lessee shall be developed and reported by the insurer, to the extent possible, for use in development of an experience modification factor for the lessee. If suitable payroll and loss experience is not reported, then the lessors experience modification factor will apply to the lessee for up to three years (3) or until such time as the lessee qualifies for development of its own experience modification factor.
An employee leasing company shall notify its insurer or service carrier 30 days prior to the effective date of termination or immediately upon notification of cancellation by a lessee of an employee leasing arrangement with a lessee in order to allow sufficient time to calculate an experience modification factor for the lessee.
02-031 C.M.R. ch. 560, § 5