An Act To Establish Standards for Portable Electronic Device Insurance
Maine Legislature, Session 125, LD 1464
Committee Amendment CA_A_S212 (Senate)
Amends: 24-A MRSA §1420-C

COMMITTEE AMENDMENT" A " to S.P. 455, L.D. 1464, Bill, "An Act To 
Establish Standards for Portable Electronic Device Insurance" 
Amend the bill by striking out all of sections 2, 3 and 4 (page 1, lines 7 to 29 in L.D.) 
and inserting the following: 
'Sec. 2. 24-A MRSA §1420-C, sub-§2, ~, as enacted by PL 2001, c. 259, §24, 
is amended to read: 
F. A person who is not a resident of this State who sells, solicits or negotiates a 
contract of insurance for commercial property and casualty risks to an insured with 
risks located in more than one state insured under that contract, provided that if that 
person is otherwise licensed as an insurance producer to sell, solicit or negotiate that 
insurance in the state where the insured maintains its principal place of business and 
the contract of insurance insures risks located in that state; 6f 
Sec. 3. 24-A MRSA §1420-C, sub-§2, ~G, as enacted by PL 2001, c. 259, §24, 
is amended to read: 
G. A salaried full-time employee who counsels or advises that person's employer 
relative to the insurance interests of the employer or of the subsidiaries or business 
affiliates of the employer if the employee does not sell or solicit insurance or receive 
a commission"~ 
Sec. 4. 24-A MRSA §1420-C, sub-§2, ~ 
is enacted to read: 
H. A person who offers to sell or sells portable electronic device insurance pursuant 
to a license issued by the superintendent under chapter 89.' 
Amend the bill in section 5 in §7001 by inserting after subsection 2 the following: 
'3. Limited lines license. "Limited lines license" means a license to sell or offer a 
policy for portable electronic device insurance. 
4. Location. "Location" means any physical location in the State or any publicly 
accessible website, call center or similar operation directed to residents ofthe State.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 455, L.D. 1464 
Amend the bill in section 5 in §7001 in subsection 4 in the 4th line (page 2, line 14 in 
L.D.) by inserting after the following: "theft," the following: 'inoperability due to' 
Amend the bill in section 5 in §7001 in subsection 4 in the 5th line (page 2, line 15 in 
L.D.) by striking out the following: 
"applicable perils" and inserting the following: 
'similar causes ofloss' 
Amend the bill in section 5 in §7001 in subsection 4 by striking out all of paragraph 
A (page 2, line 17 in L.D.) and inserting the following: 
'A. A service contract or extended warranty providing coverage limited to the repair, 
replacement or maintenance of property for the operational or structural failure of 
property due to a defect in materials, workmanship, accidental damage from handling 
or normal wear and tear;' 
Amend the bill in section 5 in §7001 in subsection 4 by striking out all of paragraph 
C (page 2, lines 20 and 21 in L.D.) and inserting the following: 
'C. 
Homeowner's or renter's insurance, private passenger automobile insurance, 
commercial multiple peril insurance or any similar policy.' 
Amend the bill in section 5 in §7001 by striking out all of subsection 6 (page 2, lines 
and 28 in L.D.) and inserting the following: 
'6. 
Supervising entity. 
"Supervising entity" means a business entity that is a 
licensed insurance producer or insurer.' 
Amend the bill in section 5 in §7001 by renumbering the subsections to read 
consecutively. 
Amend the bill in section 5 in §7002 in subsection 1 in the first and 2nd lines (page 2, 
lines 32 and 33 in L.D.) by striking out the following: "pursuant to section 1420-F" and 
inserting the following: 'under this chapter' 
Amend the bill in section 5 in §7002 in subsection 3 in the 2nd line (page 3, line 4 in 
L.D.) by striking out the following: "quarterly thereafter" and inserting the following: 
'upon request by the superintendent' 
Amend the bill in section 5 in §7003 in subsection 1 in paragraph C in subparagraph 
(2) (page 3, line 22 in L.D.) by striking out the following: "agency" and inserting the 
following: 'entity' 
Amend the bill in section 5 in §7003 in subsection 1 by striking out all of paragraphs 
D and E (page 3, lines 28 to 35 in L.D.) and inserting the following: 
'D. 
Summarize the process for filing a claim, including a description of any 
requirements to return the portable electronic device and the maximum fee applicable 
if the customer fails to comply with any equipment return requirements; and 
E. State that the customer may cancel enrollment for coverage under a portable 
electronic device insurance policy at any time and the person paying the premium 
must receive a refund of any applicable unearned premium.' 
Amend the bill in section 5 in §7003 in subsection 2 in the 2nd line (page 3, line 37 in 
L.D.) by inserting after the following: "grOUP or" the following: 'master commercial' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 455, L.D. 1464 
Amend the bill in section 5 in §7003 in subsection 3 in the last line (page 4, line 3 in 
L.D.) by striking out the following: "policy" and inserting the following: 'program' 
Amend the bill in section 5 in §7004 in subsection 1 in paragraph B in the first and 
2nd lines (page 4, lines 12 and 13 in L.D.) by striking out the following: "appoints a 
supervising agency" and inserting the following: 'either directly supervises or appoints a 
supervising entity' 
Amend the bill in section 5 in §7004 in subsection 1 in paragraph B by striking out all 
of subparagraph (1) (page 4, lines 17 to 22 in L.D.) and inserting the following: 
'(1) 
The training must be delivered to all employees and authorized 
representatives of the vendor who are directly engaged in the activity of selling or 
offering portable electronic device insurance. The training may be provided in 
electronic form. 
If conducted in electronic form the supervising entity shall 
implement a supplemental education program that is conducted and overseen by 
licensed employees of the supervising entity to supplement the electronic 
training; and' 
Amend the bill in section 5 in §7004 by striking out all of subsection 2 (page 4, lines 
to 42 in L.D.) and inserting the following: 
'2. Charges. The charges for portable electronic device insurance coverage may be 
billed and collected by the vendor. Any charge to the customer for coverage that is not 
included in the cost associated with the purchase or lease of a portable electronic device 
or related services must be separately itemized on the customer's bill. If the portable 
electronic device insurance coverage is included with the purchase or lease of a portable 
electronic device or related services, the vendor shall clearly and conspicuously disclose 
to the customer that the portable electronic device insurance coverage is included with the 
portable electronic device or related services. A vendor billing and collecting charges for 
coverage is not required to maintain those funds in a segregated account as long as the 
vendor is authorized by the insurer to hold such funds in an alternative manner and remits 
the funds to the supervising entity within 60 days of receipt. All funds received by a 
vendor from a customer for the sale of portable electronic device insurance are 
considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the 
insurer. A vendor may receive compensation for billing and collection services.' 
Amend the bill in section 5 by striking out all of §7005 (page 5, lines 1 to 12 in L.D.) 
and inserting the following: 
'§700S. Violations 
1. Penalties. If a vendor or its employee or authorized representative violates any 
provision of this chapter, the superintendent may enforce this chapter in accordance with 
section 12-A except the superintendent may not impose a fine exceeding $15,000 for 
aggregate conduct in violation of this chapter. 
2. Suspension or revocation. In addition to any other penalties authorized by law, 
the superintendent may: 
A. Suspend the authority of a vendor to transact portable electronic device insurance; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 455, L.D. 1464 
B. Suspend the authority of a vendor to transact portable electronic device insurance 
pursuant to this chapter at specific business locations where violations have occurred; 
and 
C. 
Suspend or revoke the authority of an individual employee or authorized 
representative of a vendor to act under a limited lines license under section 7002, 
subsection 2.' 
Amend the bill in section 5 in §7006 in subsection 1 in the last line (page 5, line 17 in 
L.D.) by striking out the following: "60" and inserting the following: '30' 
SUMMARY 
This amendment is the majority report of the committee and does the following. 
1. It provides an exemption from required licensure as an insurance producer for 
persons who sell or offer portable electronic device insurance. The bill requires all 
employees or authorized representatives of a vendor to be licensed. 
2. It adds definitions of "limited lines license" and "location" and makes clarifying 
changes to other definitions in the bill. 
3. It clarifies that training for employees and representatives of a vendor selling or 
offering portable electronic device insurance may be conducted in electronic form and, if 
conducted in electronic form, the supervising entity shall implement a supplemental 
education program. 
4. 
It removes the specific penalties imposed in the bill and authorizes the 
superintendent to impose penalties in accordance with current law. It also clarifies the 
authority of the superintendent to suspend the authority of a vendor to transact portable 
electronic device insurance for a violation. 
5. It reduces the amount of time of the notice period after which an insurer may 
terminate or change the conditions of a policy of portable electronic device insurance 
from 60 days to 30 days. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05120111 
fraC!. 
LD 1464 
LR 1882(02) 
An Act To Establish Standards for Portable Electronic Device Insurance 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment" A" 5 - 2.1"2-
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium revenue increase - Other Special Revenue Funds 
Minor cost increase - Other Special Revenue Funds 
Additional revenue from portable electronic device insurance vendor licensing fees (original license fees may not 
exceed $1,000 and annual renewal fees $500) will depend on the number of vendors applying for the licenses. 
Because vendors would only need one license for all of their Maine operations and not one for each employee, the 
number oflicenses may only be in the range of 25 per year. Additional costs to the Bureau of Insurance in the 
Department of Professional and Financial Regulation are expected to be minor. 
LR1882(02) - Fiscal Note - Page 1 of 1