An Act To
Maine Legislature, Session 128, LD 1161
Committee Amendment CA_A_S72 (Senate)

COMMITTEE AMENDMENT "A " to S.P. 382, L.D. 1161, Bill, "An Act To 
Amend the Insurance Laws Governing the Provision of Rebates" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
1Sec. 1. 24-A MR.SA §2163-A, as amended by PL 1999, c. 8, §1, is repealed and 
the following enacted in its place: 
§2163-A. Permitted activities 
1. Permissible gifts and prizes. Notwithstanding any other provision in sections 
2160 to 2163, an insurer, an employee of an insurer or a producer may offer to give gifts 
in connection with marketing for the sale or retention of contracts of insurance, as long as 
the cost does not exceed $100 per year per person, and conduct raffles or drawings, as 
long as there is no participation cost to entrants and as long as the prizes are not valued in 
excess of $500. Nothing in sections 2160 to 2163 may be construed to prohibit an 
insurance producer from receiving a fee rather than commission on the sale of property 
and casualty insurance in accordance with section 1450 and rules adopted by the 
superintendent. 
Gifts and prizes given pursuant to this section may not be in the form of cash. 
2. Permissible value-added service or activity. An insurer, an employee of an 
insurer or a producer may offer to provide a value-added service or activity, offered or 
provided without fee or at a reduced fee, that is related to the coverage provided by an 
insurance contract if the provision of the value-added service or activity does not violate 
any other applicable statute or rule and is: 
A. Clearly identified and included within the insurance contract; or 
B. Directly related to the servicing of the insurance contract or offered or undertaken 
to provide risk control for the benefit of a client. 
3. Services for free or for less than fair market value. This section does not 
5 
prohibit a person from offering or providing services, whether or not the services are 
COMMITTEE AMENDMENT 
COMMITTEEAMENDMENT"A "to S.P. 382, L.D. 1161 
directly related to an insurance contract, for free or for less than fair market value as long 
as the receipt of the services is not contingent upon the purchase of insurance and the 
services are offered on the same terms to all potential insurance customers. A person that 
offers or provides services under this subsection for free or for less than fair market value 
shall disclose conspicuously in writing to the recipient before the purchase of insurance, 
receipt of a quote for insurance or designation of an agent of record that receipt of the 
services is not contingent on the purchase of insurance. 
4. Rules. 
The superintendent may adopt rules as necessary to make reasonable 
modifications to the standards in this section. Rules adopted pursuant to this subsection 
are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.' 
SUMMARY 
This amendment is the majority report of the committee and replaces the bill. This 
amendment retains the provision in the bill allowing a person to offer or provide services, 
whether or not the services are directly related to an insurance contract, for free or for less 
than fair market value, as long as the receipt of the services is not contingent upon the 
purchase of insurance and the recipient of the services is notified in writing that the 
services are not contingent on the purchase of insurance. The amendment also increases 
the dollar limits for permissible gifts in connection with marketing and retention of 
contracts from $20 per person to $100 per person and increases the maximum value of 
prizes awarded in raffles and drawings from $100 to $500. 
COMMITTEE AMENDMENT