An Act To Amend the Long-term Care Insurance Law
Maine Legislature, Session 123, LD 1865
Committee: Insurance and Financial Services
Sponsors: SULLIVAN, VAUGHAN, SNOWE-MELLO, BRAUTIGAM
Amends: 24-A MRSA §5076, 24-A MRSA §5078, 24-A MRSA §5081

Legislative Document 
No. 1865 
S.P.678 
April 24, 2007 
An Act To Amend the Long-term Care Insurance Law 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Senator SULLIVAN of York. (GOVERNOR'S BILL) 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative VAUGHAN of Durham and Senator: SNOWE-MELLO of 
Androscoggin, Representative: BRAUTIGAM of Falmouth. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §5076, sub-§4, as enacted by PL 1999, c. 292, §2, is 
amended to read: 
4. 
Field-issued policies or certificates. 
A long-term care insurance policy or 
certificate may not be field-issued based OR fRedieal or health statt:1s if the compensation 
to the field issuer is based on the number of policies or certificates issued. For the 
purposes of this subsection, "field-issued" means a policy or certificate issued by aR agent 
a producer or a 3rd-party administrator pursuant to the underwriting authority granted to 
the agent producer or 3rd-party administrator by an insurer using the insurer's 
underwriting guidelines. 
Sec. 2. 24-A MRSA §5078, as enacted by PL 1999, c. 292, §2, is amended to 
read: 
§S078. Rulemaking 
The superintendent shall adopt rules to promote premium adequacy, to protect a 
policyholder and a certificate holder in the event of substantial rate increases and to 
establish minimum standards for marketing practices, insurance producer compensation, 
insurance producer education, insurance producer testing, penalties and reporting 
practices for long-term care insurance. Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter II-A 2-A. 
Sec. 3. 24-A MRSA §5081 is enacted to read: 
§S081. Producer training requirements 
1. Training required. An individual may not sell, solicit or negotiate long-term 
care insurance unless: 
A. The individual is licensed as a life or health insurance producer; 
B. The individual has completed a one-time training course that is no less than 8 
hours in length; and 
C. 
The individual completes ongoing training of no less than 4 hours every 24 
months thereafter. 
An individual licensed as a life or health insurance provider and who is actively selling, 
soliciting or negotiating long-term care insurance as of the effective date of this section 
must complete a one-time training cuurse by July 1, 2008 and ongoing training every 24 
months thereafter in order to continue selling, soliciting or negotiating long-term care 
insurance. 
The training required by this subsection must meet the requirements set forth in 
subsection 2. The training requirements of subsection 2 may be approved as continuing 
education courses under chapter 16, subchapter 7. 
2. Content of trainine. The one-time training required by this section must consist 
of topics related to long-term care insurance, long-term care services and, if applicable, 
qualified state long-term care insurance partnership programs, including, but not limited 
to: 
A. State and federal regulations and requirements and the relationship between the 
Long-term Care Partnership Program established in Title 22, section 3174-GG and 
other public and private coverage of long-term care services, including Medicaid; 
B. Available long-term care services and providers; 
C. Changes or improvements in long-term care services or providers; 
D. Alternatives to the purchase of private long-term care insurance; 
E. The effect of inflation on benefits and the importance of inflation protection; and 
F. Consumer suitability standards and guidelines. 
The training required by this section may not include training that is specific to an insurer 
or company product or that includes any sales or marketing information, materials or 
training other than that required by state or federal law. 
3. Verification. An insurer shall: 
A. Obtain verification that a producer has received training required by this section 
before the producer may sell, solicit or negotiate the insurer's long-term care 
insurance products; 
B. Maintain records of the verification under paragraph A for at least 3 years; and 
C. Make verification records available to the superintendent upon request. 
4. Records. An insurer shall maintain records with respect to the training of its 
producers concerning the distribution of its partnership policies that will "allow the 
superintendent to provide assurance to the Department of Health and Human Services 
that producers have received the training required by this section and that its producers 
have demonstrated an understanding of the partnership policies and their relationship to 
public and private coverage of long-term care, including Medicaid, in this State. The 
records must be maintained for a period of at least 3 years after each producer has 
received the training required by this section and must be made available to the 
superintendent upon request. 
5. Reciprocity. The satisfaction of training requirements in this section in another 
state is considered to satisfY the training requirements in this section. 
SUMMARY 
This bill qualifies consumers who purchase certain long-term care insurance policies 
for asset-protection measures under the federal Deficit Reduction Act 'of 2005, Public 
Law 109-171. The bill conforms Maine law to recently adopted amendments to the 
National Association of Insurance Commissioners' long-term care insurance model act. 
The bill prohibits issuing policies or certificates in the field if a field producer's 
compensation is based on the number of policies or certificates sold. The bill also 
imposes training requirements on producers who sell, solicit or negotiate long-term care 
policies.