AUGUSTA – A Massachusetts-based company that insured Bath Iron Works employees and thousands of other Mainers would have to pay claims under a newly proposed court settlement, Maine’s chief insurance regulator said.

Tufts Health Plan of New England was unable to pay all of its debts after it was liquidated earlier this year. It had 145,000 customers in Maine, New Hampshire and Vermont.

Maine Insurance Superintendent Alessandro Iuppa said Wednesday that papers filed in Merrimack County Superior Court in New Hampshire propose a settlement that sets forth a process for Tufts to pay all its debts.

The settlement includes an amount for a claim filed by Bath Iron Works. The defense contractor had to look for a new group health insurer for its 7,800 workers after Tufts pulled out of the state.

BIW filed a $40 million lawsuit against Tufts Health Plan, alleging breach of contract, negligence and fraud.

Documents proposing the settlement were filed by New Hampshire Insurance Commissioner Paula Rogers. Iuppa said that those who have claims against Tufts will be contacted by Rogers’ department.

A court-appointed liquidator will determine the amount to be paid to each creditor, said Iuppa.

“Bureau staff has worked diligently with the New Hampshire department to see that claimants receive a fair and equitable settlement of their outstanding claims,” said Iuppa.

“Although we have not yet had the opportunity to analyze all of the documents filed, I see this as a very positive step toward closure for Tufts claimants,” Iuppa said.

Details of the proposed settlement are to be posted on the New Hampshire Insurance Department’s Web site, and also on the Maine insurance agency’s Web site.