An Act To Provide Insurance Coverage for a Beneficiary on a Transfer on Death Deed
Maine Legislature, Session 130, LD 1752
Committee Amendment CA_A_S417 (Senate)
Amends: 24-A MRSA §3049-A

COMMITTEE AMENDMENT" fl "to S.P. 611, L.D. 1752, "An Act To Provide 
Insurance Coverage for a Beneficiary on a Transfer on Death Deed" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 24-A MRSA §3049-A is enacted to read: 
§3049-A. Transfer on death deed; provision and cancellation of property insurance 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Designated beneficiary" has the same meaning as in Title 18-C, section 6-402, 
subsection 2. 
B. "Insurable interest" has the same meaning as in section 2406, subsection2. 
C. "Policy" means an insurance contract subject to this subchapter. 
D. "Transfer on death deed" has the same meaning as in Title 18-C, section 6-402, 
subsection 6. 
E. "Transferor" has the same meaning as in Title 18-C, section 6-402, subsection 7. 
2. Policy to include designated beneficiary. Notwithstanding any provision of law 
to the contrary, when an insured property passes to a designated beneficiary under a transfer 
on death deed, any policy covering the insured property must extend to the designated 
beneficiary, except as provided in this section. 
3. Cancellation. Upon receiving a notice of death affidavit under Title 18-C, section 
6-414, the insurer may cancel a policy extended pursuant to this section as if the policy had 
been in effect for less than 90 days, as provided in section 3049. If the insurer does not 
receive a notice of death affidavit within 30 days after the transferor's death, the policy is 
deemed to have been cancelled as of the transferor's death without any further action by 
the insurer. 
4. Coverage extended. The coverage extension under this section applies only with 
respect to the premises and property of the transferor. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" Pt "to S.P. 611, L.D. 1752 C 
S-L-\ 6) 
5. Proof demanded; policy conditions. Before making any claim payments to a party 
claiming rights under this section as a designated beneficiary, the insurer may ask for proof 
that the party is a designated beneficiary under a properly recorded transfer on death deed 
and that the party has filed a notice of death affidavit under Title 18-C, section 6-414. The 
designated beneficiary shall comply with the conditions of the policy. 
6. Insurable interest; multiple beneficiaries. A designated beneficiary is not entitled 
to recover under a policy extended as provided in this section in an amount that would 
exceed the designated beneficiary's insurable interest at the time of loss or damage. If the 
transfer on death deed has designated multiple beneficiaries, nothing in this section requires 
the insurer to pay an amount for loss or damage to the premises and property that exceeds 
the amount that would be owed to the transferor if the transferor were living at the time of 
loss or damage.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment replaces the substance of the bill. The amendment requires a property 
insurance insurer to extend coverage for a limited time to a designated beneficiary named 
on a transfer on death deed when the transferor dies. It provides that the insurer, upon 
receiving a notice of death affidavit, may cancel the contract as if it had been in effect for 
less than 90 days as provided in current law and provides that the policy automatically 
cancels as of the transferor's death if the insurer has not received a notice of death affidavit 
within 30 days after the transferor's death. The amendment also limits coverage to the 
property transferred, requires the beneficiary to comply with the policy conditions, allows 
the insurer to request proof of the transferee's status as a designated beneficiary and, if there 
are multiple designated beneficiaries, limits the insurer's liability to what it would have 
owed the transferor at the time of loss or damage. 
COMMITTEE AMENDMENT