March 16--AUGUSTA, Maine -- Two Maine legislators sent a letter to President Donald Trump on Thursday asking him to repeal parts of a federal identification program that have spurred privacy concerns and policy headaches over the state's non-compliance with the law.

It's supported by Maine Secretary of State Matthew Dunlap, who has been leading the fight to preserve a 2007 law that bars the state from complying with the federal REAL ID Act. In January, the federal government stopped accepting Maine driver's licenses at certain facilities.

The plea to Trump from two libertarian-leaning state senators -- Eric Brakey, R-Auburn, and Shenna Bellows, D-Manchester -- is effectively emerging as a rival plan to a bill from Sen. Bill Diamond, D-Windham, which would make Maine comply with the federal law.

Maine has implemented many REAL ID provisions, but it's one of five states in non-compliance, having balked at controversial data warehousing requirements in the law, such as using facial recognition software in the Bureau of Motor Vehicles and fingerprinting bureau employees.

Brakey and Bellows want Trump to repeal those types of provision with an executive order, with the letter asking Trump to take "quick action" to "to preserve the safety and liberty of all Americans" from the "impending security and privacy disaster" that is REAL ID's final stages.

It called the barring of entry to federal facilities "the worst kind of blackmail." Maine's position will be worse in January 2018, when licenses won't be accepted by airlines for boarding domestic flights, although passports or passport cards will be valid.

Dunlap, a Democrat, said Maine would be in compliance with the law if Trump took that action, although he said he didn't know the Republican president's stance on the issue.

"Once you start complying, you don't know what the purposes will then be designated for or what additional requirements may come down the road," he said.

The Legislature has given initial approval to a bill from Assistant House Majority Leader Jared Golden, D-Lewiston, that would fund passport cards for veterans who get health care at Pease Air Force Base in New Hampshire, but it awaits funding before final passage. Diamond's bill will be considered by the Legislature's Transportation Committee on Thursday.

Watch bangordailynews.com for updates.

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REGULATION

A life insurance company, one of the investors reportedly hit by a more-than-$500 million financial fraud, must stop selling policies in Virginia, the State Corporation Commission has ordered.

The SCC Bureau of Insurance had charged that the firm, Atlantic Coast Life Insurance Co., was in a hazardous financial condition and has agreed to stop selling insurance in the state.

The bureau's action and the settlement come in the wake of South Carolina insurance regulators' petition to a state court there authorizing them to take control of the company.

Atlantic Coast had 18,709 policies in Virginia providing roughly $266 million of coverage as of Dec. 31.

In the past six months, the company's surplus — basically the money that backstops its promises to pay benefits in case its reserves aren't sufficient — has dropped from $79 million to $45 million, its latest financial filing with the bureau shows.

"Without accepting as accurate the factual allegations … This offer is being made solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law," Jill Gettman, Atlantic Coast's chief legal counsel and secretary, said in a filing with the bureau.

She said Atlantic Coast would continue to properly pay claims under its Virginia policies.

The ban on new sales by Atlantic Coast takes effect Nov. 1. The company can, however, renew existing policies that are guaranteed renewable or noncancellable.

The SCC order says the ban on new sales would end if South Carolina regulators withdraw their court petition seeking control of the company and, at the same time, if the insurer's parent either raises at least $50 million with an agreed amount going to support the insurer or if another company offers to acquire the firm.

South Carolina regulators want to take control of Atlantic Coast and its affiliate Southern Atlantic Re because they allege their parent company, the private equity firm Advantage Capital Holdings, moved money from retiree annuities into investments that could be easily redeemed, as well as in loans that exceeded previously agreed limits.

The South Carolina regulators said Atlantic Coast had too much money tied up with a failed investment firm, 777 Partners, and didn't disclose investments made with affiliated firms.

Advantage Capital has contested the regulators' charges.

Earlier this month, Joshua Wander, founder and former CEO of 777 Partners, pleaded guilty to wire and securities fraud in connection with a scheme to defraud the lenders and investors of 777 Partners.

Federal prosecutors said Wander defrauded investors and lenders of more than $500 million.

Prosecutors said Wander told investors they would be financing "structured settlements," contracts that turn lump sum legal settlements for damages into a series of smaller payments over time.

Instead, Wander actually invested in other things, including airlines and professional sports teams, instead of using funds to make sure structured settlements paid what they promised, prosecutors said.

The rating agency AM Best has downgraded Atlantic Coast's financial strength rating from B, fair, to C-plus, marginal.

"Current capital levels and regulatory capital ratios have deteriorated in the first six months of 2026, continuing a trend since 2024," AM Best said in a statement.

"The group has a significant allocation to illiquid assets and equities that are not traditionally associated with insurance company investments," the agency added.

Dave Ress(804) 649-6948 dress@timesdispatch.com

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