An Act To Protect Seniors and the Public from Unfair Health Insurance Sales Practices
Maine Legislature, Session 123, LD 0416
Committee Amendment CA_A_H29 (House)
Amends: 24-A MRSA §2152-B

COMMITTEE AMENDMENT 'fJ" to H.P. 332, L.D. 416, Bill, "An Act To Protect 
Seniors and the Public from Unfair Health Insurance Sales Practices" 
Amend the bill by inserting after the title the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Department of Professional and Financial Regulation, Bureau of 
Insurance has received complaints from consumers about misleading sales practices used 
by certain insurance producers; and 
Whereas, many of these complaints have been associated with the sale of Medicare 
Part D products and other Medicare products marketed to the elderly; and 
Whereas, elderly consumers may be especially vulnerable to potentially misleading 
sales practices related to appointments made to discuss Medicare benefits; and 
Whereas, this legislation prohibits unfair and misleading methods used to solicit the 
sale of life, health and annuity products, including Medicare products; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §2152-B is enacted to read: 
§2152-B. Unfair solicitation methods 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
COMMITTEE AMENDMENT 
.~ 
~. 
COMMITTEE AMENDMENT 'f}' to H.P. 332, L.D. 416 
A. "Cold lead advertising" means making use directly or indirectly of a method of 
marketing that fails to disclose in a conspicuous manner that a purpose of the 
marketing is insurance sales solicitation and that contact will be made by an 
insurance producer or insurance company. 
B. "Medicare products" includes Medicare Part A, Medicare Part B, Medicare Part 
C, Medicare Part D, Medicare Advantage and Medicare supplement plans. 
2. Unfair solicitation methods. It is an unfair trade practice under this chapter for 
an insurer or producer to: 
A. Sell, solicit or negotiate the purchase of health insurance in this State through the 
use of cold lead advertising; 
B. Use an appointment that was made to discuss Medicare products or to solicit the 
sale of Medicare products in order to solicit sales of life insurance, health insurance 
or annuity products unless the consumer request such solicitation and the products to 
be discussed are clearly identified to the consumer in writing at least 48 hours in 
advance of the appointment; and 
C. Solicit the sale of Medicare products door-to-door prior to receiving an invitation 
from a consumer. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect June 1, 2007.' 
SUMMARY 
This amendment replaces the bill. The amendment retains the prohibition on cold 
lead advertising contained in the bill. It clarifies that insurers and producers may not use 
an appointment to discuss Medicare products to solicit sales of life insurance, health 
insurance or annuity products unless requested by a consumer and the products to be 
discussed are clearly identified to a consumer in writing at least 48 hours in advance of 
the appointment. The amendment also prohibits door-to-door solicitation of Medicare 
products prior to receiving an invitation from a consumer. 
The amendment also adds an emergency preamble and emergency clause. 
The 
amendment adds an effective date of June 1,2007. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/09/07 ;::Idac.. 
LD416 
LR 522(02) 
An Act To Protect Seniors and the Public from Unfair Health Insurance Sales Practices 
Fiscai Detail and Notes 
Fiscal Note for Bill as Amended by Committe Amendment '~' 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
The Department of the Attorney General will incur additional costs to conduct enforcement activities for newly 
defined unfair trade practices related to marketing of health insurance products. These costs can be absorbed within 
the department's existing budgeted resources. 
LR0522(02) - Fiscal Note - Page 1 of 1