An Act To Allow Equipment Rental Companies To Sell t~uipment Insurance II
Maine Legislature, Session 127, LD 0329
Committee Amendment CA_A_H80 (House)
Amends: 24-A MRSA §1413, 24-A MRSA §1420-F, 24-A MRSA §1420-H, 24-A MRSA §3043

COMMITTEE AMENDMENT" A" to H.P. 223, L.D. 329, Bill, "An Act To Allow 
Equipment Rental Companies To Sell t~uipment Insurance" 
II 
Amend the bill by striking out the title and substituting the following: 
'An Act To Allow Equipment Rental Companies To Sell Insurance' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §1413, sub-§9 is enacted to read: 
9. Equipment rental company. A rental company as defined in section 3043, 
subsection 1, paragraph C that solicits or sells insurance in connection with and incidental 
to the rental of covered rental equipment as defined in section 3043, subsection 1, 
paragraph B shall obtain a limited insurance producer license under this chapter, and at 
least one employee at each office of the rental company located in the State shall obtain a 
limited insurance producer license. 
Sec. 2. 24-A MRSA §1420-F, sub-§l, ,K, as enacted by PL 2001, c. 259, §24, 
is amended to read: 
K. Automobile mechanical breakdown contracts, which are a limited line; aad 
Sec. 3. 24-A MRSA §1420-F, sub-§l, ~, as repealed and replaced by PL 2007, 
c. 51, §3, is amended to read: 
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; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 223, L.D. 329 
(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.; and 
Sec. 4. 24-A MRSA §1420-F, sub-§l, ~M is enacted to read: 
M. Insurance offered, sold or solicited in connection with and incidental to the rental 
of covered rental equipment, as defined in section 3043, insuring against the loss of 
or damage to that equipment. 
Sec. 5. 24-A MRSA §1420-H, sub-§3, ~, as enacted by PL 2001, c. 259, §24, 
is amended to read: 
D. An applicant for a license as a limited insurance producer who solicits or sells 
mechanical breakdown insurance; 6f 
Sec. 6. 24-A MRSA §1420-H, sub-§3,~, as amended by PL 2007, c. 51, §4, is 
8 
further amended to read: 
E. An applicant for a license as a limited insurance producer employed by a motor 
vehicle rental company who solicits or sells 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 1420-F, subsection I, paragraph L7~ 
Sec. 7. 24-A MRSA §1420-H, sub-§3, ~F is enacted to read: 
F. 
An applicant for a license as a limited insurance producer employed by an 
equipment rental company who solicits or sells insurance in connection with and 
incidental to the rental of covered rental equipment in accordance with section 
1420-F, subsection 1, paragraph M. 
Sec. 8. 24-A MRSA §3043 is enacted to read: 
§3043. Coverage for rental equipment permitted 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Covered rental agreement" means a written agreement with a term of 30 
continuous days or fewer setting forth the terms and conditions governing the use of 
covered rental equipment provided by a rental company. 
B. "Covered rental equipment" means equipment rented pursuant to a covered rental 
agreement for personal or household purposes. 
C. "Rental company" means a person or organization, including a franchisee, in the 
business of renting equipment to the public. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 223, L.D. 329 
2. Coverage for rental equipment permitted. Notwithstanding any other provision 
of this Title, a rental company may offer for sale an insurance policy insuring against the 
loss of or damage to covered rental equipment under a covered rental agreement.' 
SUMMARY 
This amendment replaces the bill and is the majority report of the committee. The 
amendment reallocates section 1 of the bill, which allows a rental company to offer for 
sale an insurance policy insuring against the loss of or damage to equipment rented for 
personal or household purposes, to the appropriate subchapter of the Maine Insurance 
Code. The amendment establishes a licensing structure for equipment rental insurance 
that is the same as the licensing structure for insurance sold in connection with renting a 
motor vehicle. The amendment requires rental companies to obtain a business entity 
license to sell insurance in connection with renting equipment and requires at least one 
employee at each office of the rental company located in the State to obtain a limited 
lines insurance producer license. The amendment also adds provisions to clarify that the 
insurance sold in connection with rental equipment is a limited lines insurance product 
and applicants for a license to sell that insurance product are exempt from examination. 
FISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
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Revised: 04/14/15 
Mac. 
LD329 
LR 688(02) 
An Act To Allow Equipment Rental Companies To Sell Equipment Insurance 
Fiscal Note for Bill as Amended by Committee Amendment ,A, (/I-RO) 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Fund 
Fiscal Detail and Notes 
Any additional costs to the Department of Professional and Financial Regulation to adopt the changes in this bill are 
expected to be minor and can be absorbed within existing budgeted resources. 
LR0688(02) - Fiscal Note - Page 1 of 1 
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