An Act To Amend Certain Requirements Applicable to Insurance Producers
Maine Legislature, Session 123, LD 0590
Committee: Insurance and Financial Services
Sponsors: FISCHER, PERRY, VAUGHAN
Amends: 24-A MRSA §1410, 24-A MRSA §1420-E, 24-A MRSA §2016

Legislative Document 
No. 590 
H.P.457 
House of Representatives, February 6,2007 
An Act To Amend Certain Requirements Applicable to Insurance 
Producers 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative FISCHER of Presque Isle. 
Cosponsored by Senator PERRY of Penobscot and 
Representative: VAUGHAN of Durham. 
Printed 011 re\.:ydeu papt:r 
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MIlLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §1410, sub-§4, as enacted by PL 2001, c. 259, §11, is 
repealed. 
Sec. 2. 24-A MRSA §1420-E, sub-§l, ~C, as enacted by PL 2001, c. 259, §24, 
is repealed. 
Sec. 3. 24-A MRS A §1420-F, sub-§l, ~, as enacted by PL 2001, c. 259, §24, 
is repealed and the following enacted in its place: 
L. 
Insurance offered, sold or solicited in connection with and incidental to the rental 
of rental cars for a period of no more than 60 days, whether at the rental office or by 
preselection of coverage in master, corporate, group or individual agreements, that is 
nontransferable, applies only to the rental car that is the subject of the rental 
agreement and is limited to the following kinds of insurance: 
(1) Personal accident insurance for renters and other rental car occupants for 
accidental death or dismemberment and for medical expenses resulting from an 
accident that occurs with the rental car during the rental period; 
(2) 
Liability insurance that provides protection to the renters and other 
authorized drivers of a rental car for liability arising from the operation or use of 
the rental car during the rental period; 
(3) Personal effects insurance that provides coverage to renters and other vehicle 
occupants for loss of, or damage to, personal effects in the rental car during the 
rental period; 
(4) Roadside assistance and emergency sickness protection insurance; and 
(5) Any other coverage designated by the superintendent. 
Sec. 4. 24-A MRS A §1420-H, as enacted by PL 2001, c. 259, §24, is amended to 
read: 
§1420-H. Exemption from examination 
1. Exemption. An individual who applies for an insurance producer license in this 
State who was previously licensed for the same lines of authority in another state is not 
required to complete any prelicensing education or examination pursuant to section 1410. 
This exemption is only available if the person is currently licensed in that state or if the 
application is received within 90 days of the cancellation of the applicant's previous 
license and if the prior state issues a certification that, at the time of cancellation, the 
applicant was in good standing in that state, or the state's producer database records, 
maintained by the National Association of Insurance Commissioners, its affiliates or 
subsidiaries or any successor organization, indicate that the producer is or was licensed in 
good standing for the line of authority requested. 
2. Application. A person licensed as an insurance producer in another state who 
moves to this State shall make application within 90 days of establishing legal residence 
to become a resident licensee pursuant to section 1420-E. Pftllieeasiag eGlleatioa or An 
examination pursuant to section 1410 is not required of that person to obtain any line of 
authority previously held in the prior state except when the superintendent determines 
otherwise by rule. Rules adopted pursuant to this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter lI-A 2-A. 
3. Additional exemptions. An examination is also not required of: 
A. 
An applicant for a license covering the same kind or kinds of insurance for 
which the applicant was licensed under a similar license in this State within the past 2 
years, other than a temporary license issued pursuant to section 1420-J. 
This 
exemption applies only to persons who have met the applicable continuing education 
requirements during the 2-year period, who voluntarily terminated their previous 
license and who continue to be fully qualified for the license. 
A person whose 
previous license was revoked or suspended may not become relicensed pursuant to 
this paragraph; 
B. 
An applicant for a license as a limited insurance producer who solicits or sells 
travel and baggage insurance; 
C. 
An applicant for a license as a resident title insurance producer who is an 
attorney at law duly licensed to practice law in this State; 
D. 
An applicant for a license as a limited insurance producer who solicits or sells 
mechanical breakdown insurance; or 
E. 
An applicant for a license as a limited insurance producer employed by a motor 
vehicle rental company who solicits or sells liability insurance in connection with and 
incidental to the rental of a motor vehicle for a period not to exceed 60 days in 
accordance with section l420-F, subsection 1, paragraph L. 
Sec. 5. 24-A MRS A §2015, as amended by PL 1997, c. 592, §6l, IS further 
amended to read: 
§2015. Record of procured coverages 
1. 
Each producer shall keep in the producer's office ia this State a full and true 
record of each surplus lines coverage procured by the producer, including a copy of each 
daily report, if any, a copy of each certificate of insurance issued, books of account in 
which financial entries are recorded respecting these transactions and such of the 
following items as may be applicable: 
A. 
Amount of the insurance; 
B. 
Gross premium charged; 
C. 
Return premium paid, if any; 
D. 
Rate of premium charged upon the several items of property; 
E. 
Effective date of the contract and the terms of the contract; 
F. 
Name and address of each insurer on the direct risk and the proportion of the 
entire risk assumed by such insurer, if less than the entire risk; 
G. 
Name and address of the insured; 
H. 
Brief general description of the property or risk insured and where located or to 
be performed; and 
I. Other information as may be required by the superintendent. 
2. 
The record may not be removed from this State, eKeept in the case of a 
ftoIH'esideftt lieeftsed as a resident producer with surplus lines authority for the purpose of 
traftsaetiftg liability iftsuraftee business Oft behalf of a registered purehasiftg group, and in 
the case of both resident and nonresident licensees must be made available and open to 
examination by the superintendent at all times within 5 years after issuance of the 
coverage to which it relates. For the purpose of investigation or examination by the 
superintendent, records may be maintained in electronic form. 
Sec. 6. 24-A MRSA §2016, sub-§l, as amended by PL 1997, c. 660, Pt. B, §3, is 
further amended to read: 
1. 
Each producer with surplus lines authority shall maintain in the producer's office 
'/lithift the State a monthly report showing the amount of insurance placed for any person 
or organization, the location of each risk, the gross premium charged, the name of each 
insurer with which the insurance was placed, the date and term of each insurance contract 
issued during the preceding month and any other pertinent information required by the 
superintendent. The report must show in the same detail each contract cancelled during 
the month covered by the report and the return premium on it. The monthly report must 
be made available to the superintendent for examination at the producer's office location 
ift the State at any time or by delivery to the bureau upon 5 days' notice by the 
superintendent. 
SUMMARY 
This bill makes the following changes to the laws applicable to insurance producers: 
1. It eliminates the prelicensing requirement under which potential license applicants 
were required to complete either a course of instruction or comply with an experience 
requirement before being able to sit for the qualifying license examination; 
2·. It expands the scope of the limited producer license for certain insurance provided 
in connection with the short-term rental of motor vehicles; and 
3. It clarifies that nonresident producers with surplus lines authority are not required 
to maintain a physical office within this State. 
All of these changes are intended to establish consistency with current national 
uniformity standards.