reglab/statecodes huggingface dataset:
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 915 - ANNUITY DISCLOSURE › Section 031-915-10 - Recordkeeping

Current through 2024-29, July 17, 2024
A. Insurers or insurance producers shall
				maintain or be able to make available to the Superintendent records of the
				information collected from the consumer and other information provided in the
				disclosure statement (including illustrations) for a period of at least 3 years
				after the contract is delivered by the insurer. An insurer is permitted, but
				shall not be required, to maintain documentation on behalf of an insurance
				producer.
B. Records required to be
				maintained by this rule may be maintained in paper, photographic, microprocess,
				magnetic, mechanical or electronic media or by any process that accurately
				reproduces the actual document.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 915 - ANNUITY DISCLOSURE › Section 031-915-11 - Effective Date

Current through 2024-29, July 17, 2024
This rule shall become effective April 1, 2004, and shall
				  apply to contracts sold on or after the effective date. The 2015 amendments to
				  this rule shall become effective November 1, 2015.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-1 - Purpose

Current through 2024-29, July 17, 2024
1. The purpose of this rule is to require
				producers, as defined in this rule, to act in the best interest of the consumer
				when making a recommendation of an annuity and to require insurers to establish
				and maintain a system to supervise recommendations so that the insurance needs
				and financial objectives of consumers at the time of the transaction are
				effectively addressed.
2. Nothing
				herein shall be construed to create or imply a private cause of action for a
				violation of this rule or to subject a producer to civil liability under the
				best interest standard of care outlined in section
				6 of this rule or under standards
				governing the conduct of a fiduciary or a fiduciary relationship.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-2 - Scope

Current through 2024-29, July 17, 2024
This rule shall apply to any sale or recommendation of an
				  annuity, except as provided in section
				  4.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-3 - Authority

Current through 2024-29, July 17, 2024
This rule shall apply to any sale or recommendation of an
				  annuity, except as provided in section
				  4.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-4 - Exemptions

Current through 2024-29, July 17, 2024
Unless otherwise specifically included, this rule shall not
				  apply to transactions involving:
1.
				Direct response solicitations where there is no recommendation based on
				information collected from the consumer pursuant to this rule;
2. Contracts used to fund:
A. An employee pension or welfare benefit
				plan that is covered by the
Employee Retirement and Income Security
				Act
(ERISA);
B. A plan
				described by sections 401(a), 401(k), 403(b), 408(k), or 408(p) of the
Internal Revenue Code
(IRC), as amended, if established or
				maintained by an employer;
C. A
				government or church plan defined in section 414 of the IRC, a government or
				church welfare benefit plan, or a deferred compensation plan of a state or
				local government or tax-exempt organization under section 457 of the IRC; or D.
				A nonqualified deferred compensation arrangement established or maintained by
				an employer or plan sponsor.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-5 - Definitions

Current through 2024-29, July 17, 2024
1. "Annuity" means an annuity that is an
				insurance product under the laws of this State that is individually solicited,
				whether the product is classified as an individual or group annuity.
2. "Cash compensation" means any discount,
				concession, fee, service fee, commission, sales charge, loan, override, or cash
				benefit received by a producer in connection with the recommendation or sale of
				an annuity from an insurer, intermediary, or directly from the
				consumer.
3. "Consumer profile
				information" means information that is reasonably appropriate to determine
				whether a recommendation addresses the consumer's financial situation,
				insurance needs and financial objectives, including, at a minimum, the
				following:
A. Age;
B. Annual income;
C. Financial situation and needs, including
				debts and other obligations;
D.
				Financial experience;
E. Insurance
				needs;
F. Financial
				objectives;
G. Intended use of the
				annuity;
H. Financial time
				horizon;
I. Existing assets or
				financial products, including investment, annuity, and insurance
				holdings;
J. Liquidity
				needs;
K. Liquid net
				worth;
L. Risk tolerance, including
				but not limited to, willingness to accept non-guaranteed elements in the
				annuity;
M. Financial resources
				used to fund the annuity; and
N.
				Tax status.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-6 - Duties of Insurers and Producers

Current through 2024-29, July 17, 2024
1.
Best
				Interest Obligations
. A producer, when making a recommendation of an
				annuity, shall act in the best interest of the consumer under the circumstances
				known at the time the recommendation is made, without placing the producer's or
				the insurer's financial interest ahead of the consumer's interest. A producer
				has acted in the best interest of the consumer if the producer has satisfied
				the following obligations regarding care, disclosure, conflict of interest, and
				documentation:
A.
(1)
Care Obligation
. The
				producer, in making a recommendation, shall exercise reasonable diligence,
				care, and skill to:
(a) Know the consumer's
				financial situation, insurance needs and financial objectives;
(b) Understand the available recommendation
				options after making a reasonable inquiry into options available to the
				producer;
(c) Have a reasonable
				basis to believe the recommended option effectively addresses the consumer's
				financial situation, insurance needs and financial objectives over the life of
				the product, as evaluated in light of the consumer profile information;
				and
(d) Communicate the basis or
				bases of the recommendation.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-7 - Producer Training

Current through 2024-29, July 17, 2024
1. A producer shall
				not solicit the sale of an annuity product unless the producer has adequate
				knowledge of the product to recommend the annuity and is in compliance with the
				insurer's standards for product training. A producer may rely on
				insurer-provided product-specific training standards and materials to comply
				with this subsection.
2.
A.
(1) A
				producer who engages in the sale of annuity products shall complete a one-time
				four (4) credit hour training course approved by the Bureau of Insurance and
				provided by a vendor approved by the Bureau of Insurance.
(2) Producers who hold a life insurance line
				of authority on the effective date of the 2021 amendments to this rule and who
				desire to sell annuities shall complete a training course that satisfies the
				requirements of this subsection no later than six (6) months after the
				effective date of the amendments. Producers whose life insurance line of
				authority is obtained on or after the effective date of the amendments may not
				engage in the sale of annuities until the annuity training course required
				under this subsection has been completed.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-8 - Compliance; Mitigation; Penalties; Enforcement

Current through 2024-29, July 17, 2024
1.
				An insurer is responsible for compliance with this rule. If a violation occurs,
				either because of the action or inaction of the insurer or its producer, the
				Superintendent may order:
A. An insurer to
				take reasonably appropriate corrective action for any consumer harmed by a
				failure to comply with this rule by the insurer, by an entity contracted to
				perform the insurer's supervisory duties, or by the producer;
B. A producer to take reasonably appropriate
				corrective action for any consumer harmed by the producer's violation of this
				rule;
C. A business entity that
				employs or contracts with a producer to sell, or solicit the sale, of annuities
				to consumers, to take reasonably appropriate corrective action for any consumer
				harmed by the producer's violation of this rule; and
D. Appropriate civil penalties and other
				disciplinary and remedial measures as provided in
				10
				M.R.S.A. §8003(5) and
				24-A M.R.S.A. §§12-A, 417, 418, 1420-K.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-9 - Recordkeeping

Current through 2024-29, July 17, 2024
1. Insurers, producer business entities and
				individual producers shall maintain or be able to make available to the
				Superintendent records of the information collected from the consumer,
				disclosures made to the consumer including summaries of oral disclosures, and
				other information used in making the recommendations that were the basis for
				insurance transactions for three years after the insurance transaction is
				completed by the insurer. An insurer is permitted, but not required, to
				maintain documentation on behalf of a producer.
2. Records required to be maintained by this
				rule shall be maintained in a manner consistent with the requirements of
				24-A M.R.S.A.
				§1447.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-10 - Severability

Current through 2024-29, July 17, 2024
If any section or portion of a section of this rule, or its
				  applicability to any person or circumstances, is held invalid by a court, the
				  remainder of this rule, or the applicability of its provisions to other
				  persons, shall not be affected.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 917 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 031-917-11 - Effective Date

Current through 2024-29, July 17, 2024
This rule shall be effective July 1, 2007. The 2015
				  amendments to this rule shall be effective November 1, 2015. The 2021
				  amendments to this rule shall be effective January 1, 2022.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-1 - Authority, Purpose and Scope

Current through 2024-29, July 17, 2024
A. This rule is
				adopted by the Superintendent under the authority of
				 24-A M.R.S.A.
				§212 and §
									2517.
B. The purpose of this rule is:
(1) To regulate the activities of insurers
				and producers with respect to the replacement of existing life insurance and
				annuities.
(2) To protect the
				interests of life insurance and annuity purchasers by establishing minimum
				standards of conduct to be observed in replacement or financed purchase
				transactions. It will:
(a) Assure that a
				purchaser receives information with which a decision can be made in his or her
				own best interest;
(b) Reduce the
				opportunity for misrepresentation and incomplete disclosure; and
(c) Establish penalties for failure to comply
				with requirements of this rule.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-3 - Duties of Producers

Current through 2024-29, July 17, 2024
A. A producer who
				initiates an application shall submit to the insurer, with or as part of the
				application, a statement signed by both the applicant and the producer as to
				whether the applicant has existing policies or contracts. If the answer is
				"no," the producer's duties with respect to replacement are complete.
B. If the applicant answered "yes" to the
				question regarding existing coverage referred to in Subsection A, the producer
				shall present and read to the applicant, not later than at the time of taking
				the application, a notice regarding replacements in the form as described in
				Appendix A or other substantially similar form approved by the Superintendent.
				However, no approval shall be required when amendments to the notice are
				limited to the omission of references not applicable to the product being sold
				or replaced. The notice shall be signed by both the applicant and the producer
				attesting that the notice has been read aloud by the producer or that the
				applicant did not wish the notice to be read aloud (in which case the producer
				need not have read the notice aloud) and left with the applicant.
C. The notice shall list all life insurance
				policies or annuities proposed to be replaced, properly identified by name of
				insurer, the insured or annuitant, and policy or contract number if available;
				and shall include a statement as to whether each policy or contract will be
				replaced or whether a policy will be used as a source of financing for the new
				policy or contract. If a policy or contract number has not been issued by the
				existing insurer, alternative identification, such as an application or receipt
				number, shall be listed.
D. In
				connection with a replacement transaction the producer shall leave with the
				applicant at the time an application for a new policy or contract is completed
				the original or a copy of all sales material. With respect to electronically
				presented sales material, it shall be provided to the policy or contract owner
				in printed form no later than at the time of policy or contract
				delivery.
E. Except as provided in
				Section 5C, in connection with a replacement transaction the producer shall
				submit to the insurer to which an application for a policy or contract is
				presented, a copy of each document required by this section, a statement
				identifying any preprinted or electronically presented company approved sales
				materials used, and copies of any individualized sales materials, including any
				illustrations related to the specific policy or contract purchased.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-4 - Duties of Insurers with Respect to Producers

Current through 2024-29, July 17, 2024
Each insurer shall:
A. Maintain a system of supervision and
				control to insure compliance with the requirements of this rule that shall
				include at least the following:
(1) Inform
				its producers of the requirements of this rule and incorporate the requirements
				of this rule into all relevant producer training manuals prepared by the
				insurer;
(2) Provide to each
				producer a written statement of the company's position with respect to the
				acceptability of replacements providing guidance to its producer as to the
				appropriateness of these transactions;
(3) A system to review the appropriateness of
				each replacement transaction that the producer does not indicate is in accord
				with Paragraph (2) above;
(4)
				Procedures to confirm that the requirements of this rule have been met;
				and
(5) Procedures to detect
				transactions that are replacements of existing policies or contracts by the
				existing insurer, but that have not been reported as such by the applicant or
				producer. Compliance with this rule may include, but shall not be limited to,
				systematic customer surveys, interviews, confirmation letters, or programs of
				internal monitoring;
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-5 - Duties of Replacing Insurers

Current through 2024-29, July 17, 2024
A. Where a
				replacement is involved in the transaction, the replacing insurer shall:
(1) Verify that the required forms are
				received and are in compliance with this rule;
(2) Notify any other existing insurer that
				may be affected by the proposed replacement within five (5) business days of
				receipt of a completed application indicating replacement or when the
				replacement is identified if not indicated on the application, and mail a copy
				of the available illustration or policy summary for the proposed policy or
				available disclosure document for the proposed contract within five (5)
				business days of a request from an existing insurer;
(3) Be able to produce copies of the
				notification regarding replacement required in Section 3B, indexed by producer,
				for at least five (5) years or until the next regular examination by the
				insurance department of a company's state of domicile, whichever is later;
				and
(4) Provide to the policy or
				contract owner notice of the right to return the policy or contract within
				thirty (30) days of the delivery of the contract and receive an unconditional
				full refund of all premiums or considerations paid on it, including any policy
				fees or charges or, in the case of a variable or market value adjustment policy
				or contract, a payment of the cash surrender value provided under the policy or
				contract plus the fees and other charges deducted from the gross premiums or
				considerations or imposed under such policy or contract; such notice may be
				included in Appendix A or C.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-6 - Duties of the Existing Insurer

Current through 2024-29, July 17, 2024
Where a replacement is involved in the transaction, the
				  existing insurer shall:
A. Retain and
				be able to produce all replacement notifications received, indexed by replacing
				insurer, for at least five (5) years or until the conclusion of the next
				regular examination conducted by the insurance department of its state of
				domicile, whichever is later.
B.
				Send a letter to the policy or contract owner of the right to receive
				information regarding the existing policy or contract values including, if
				available, an in force illustration or policy summary if an in force
				illustration cannot be produced within five (5) business days of receipt of a
				notice that an existing policy or contract is being replaced. The information
				shall be provided within five (5) business days of receipt of the request from
				the policy or contract owner.
C.
				Upon receipt of a request to borrow, surrender or withdraw any policy values,
				send a notice, advising the policy owner that the release of policy values may
				affect the guaranteed elements, non-guaranteed elements, face amount or
				surrender value of the policy from which the values are released. The notice
				shall be sent separate from the check if the check is sent to anyone other than
				the policy owner. In the case of consecutive automatic premium loans, the
				insurer is only required to send the notice at the time of the first
				loan.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-7 - Duties of Insurers with Respect to Direct Response Solicitations

Current through 2024-29, July 17, 2024
A. In the case of an application that is
				initiated as a result of a direct response solicitation, the insurer shall
				require, with or as part of each completed application for a policy or
				contract, a statement asking whether the applicant, by applying for the
				proposed policy or contract, intends to replace, discontinue or change an
				existing policy or contract. If the applicant indicates a replacement or change
				is not intended or if the applicant fails to respond to the statement, the
				insurer shall send the applicant, with the policy or contract, a notice
				regarding replacement in Appendix B, or other substantially similar form
				approved by the Superintendent.
B.
				If the insurer has proposed the replacement or if the applicant indicates a
				replacement is intended and the insurer continues with the replacement, the
				insurer shall:
(1) Provide to applicants or
				prospective applicants with the policy or contract a notice, as described in
				Appendix C, or other substantially similar form approved by the Superintendent.
				In these instances the insurer may delete the references to the producer,
				including the producer's signature, and references not applicable to the
				product being sold or replaced, without having to obtain approval of the form
				from the Superintendent. The insurer's obligation to obtain the applicant's
				signature shall be satisfied if it can demonstrate that it has made a diligent
				effort to secure a signed copy of the notice referred to in this paragraph. The
				requirement to make a diligent effort shall be deemed satisfied if the insurer
				includes in the mailing a self-addressed postage prepaid envelope with
				instructions for the return of the signed notice referred to in this section;
				and
(2) Comply with the
				requirements of Section 5A(2), if the applicant furnishes the names of the
				existing insurers, and the requirements of Sections 5A(3), 5A(4) and 5B.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-8 - Violations and Penalties

Current through 2024-29, July 17, 2024
A. Any failure to
				comply with this rule shall be considered a violation of
				 24-A M.R.S.A.
				§2155. Examples of violations include:
(1) Any deceptive or misleading information
				set forth in sales material;
(2)
				Failing to ask the applicant in completing the application the pertinent
				questions regarding the possibility of financing or replacement;
(3) The intentional incorrect recording of an
				answer;
(4) Advising an applicant
				to respond negatively to any question regarding replacement in order to prevent
				notice to the existing insurer; or
(5) Advising a policy or contract owner to
				write directly to the company in such a way as to attempt to obscure the
				identity of the replacing producer or company.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-9 - Severability

Current through 2024-29, July 17, 2024
If any section or portion of a section of this regulation, or
				  its applicability to any person or circumstances, is held invalid by a court,
				  the remainder of this regulation, or the applicability of its provisions to
				  other persons, shall not be affected.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Appendix 031-919-B

Current through 2024-29, July 17, 2024
NOTICE REGARDING REPLACEMENT
REPLACING YOUR LIFE INSURANCE POLICY OR
				  ANNUITY?
Are you thinking about buying a new life insurance policy or
				  annuity and discontinuing or changing an existing one" If you are, your
				  decision could be a good one-or a mistake. You will not know for sure unless
				  you make a careful comparison of your existing benefits and the proposed policy
				  or contract's benefits.
Make sure you understand the facts. You should ask the
				  company or agent that sold you your existing policy or contract to give you
				  information about it.
Hear both sides before you decide. This way you can be sure
				  you are making a decision that is in your best interest.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 920 - Reporting of Fraudulent Insurance Acts › Section 031-920-1 - Authority

Current through 2024-29, July 17, 2024
This Rule is adopted pursuant to the authority of
				  24-A M.R.S.A.
				  §§212 and
				  2186,
				  sub-§
									4, paragraph A.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 920 - Reporting of Fraudulent Insurance Acts › Section 031-920-2 - Purpose

Current through 2024-29, July 17, 2024
Title
				  24-A M.R.S.A.
				  §2186, sub-§
									4, paragraph A requires all insurers
				  to annually, on or before March 1, file with the Superintendent a report
				  relating to fraudulent insurance acts that the insurer knew or reasonably
				  believed had been committed during the previous calendar year. This rule
				  prescribes the report process.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 920 - Reporting of Fraudulent Insurance Acts › Section 031-920-3 - Definitions

Current through 2024-29, July 17, 2024
For purposes of this Rule, the following words and terms have
				  the following meanings:
A. "Fraudulent
				Insurance Act" has the same meaning as in
				24-A M.R.S.A.
				§2186, sub-§
									1, paragraph A; and
B. "Insurer" has the meaning set forth in
				24-A M.R.S.A.
				§2186 sub-§
									1, paragraph B.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 920 - Reporting of Fraudulent Insurance Acts › Section 031-920-4 - Format of Report of Fraudulent Insurance Acts

Current through 2024-29, July 17, 2024
The annual report by all insurers licensed to do business in
				  Maine shall be submitted in a form and manner as prescribed by the
				  Superintendent.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 920 - Reporting of Fraudulent Insurance Acts › Section 031-920-5 - Effective Date

Current through 2024-29, July 17, 2024
This rule is effective February 23, 1999. The 2015 amendments
				  to this rule are effective November 25, 2015.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-1 - Authority

Current through 2024-29, July 17, 2024
The Superintendent adopts this rule pursuant to
				   24-A M.R.S.A.
				  §§212,
				  6806,
				  6810,
				  6812,
				  and
				  6817.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-2 - Purpose

Current through 2024-29, July 17, 2024
The purposes of this rule are to set forth standards and
				  procedures for the viatication of life insurance policies through viatical and
				  life settlements, to establish and maintain standards for reasonableness of
				  payments to viators in the case of viatical settlements, to provide for
				  procedures for disclosure of the identity of the viator or the insured, and to
				  establish licensing requirements and standards of conduct for viatical and life
				  settlement providers and producers.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-3 - Applicability

Current through 2024-29, July 17, 2024
This rule applies to settlement providers and settlement
				  producers, as defined in
				   24-A M.R.S.A.
				  §6802-A.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-4 - Definitions

Current through 2024-29, July 17, 2024
In addition to the definitions in
				   24-A M.R.S.A.
				  §6802-A, the following definitions apply
				  to this rule:
A. "Life Insurance"
				means insurance on human lives. For the purposes of this rule, life insurance
				does not include annuity contracts or variable life contracts or contracts
				granting endowment benefits.
B.
				"Insured" means the individual covered under the policy being considered for a
				settlement contract.
C. "Life
				expectancy" means the mean number of months the insured can be reasonably
				expected to live as determined by the settlement provider based on accepted
				actuarial and medical criteria, the insured's medical records and appropriate
				experiential data. For settlement contracts in which the insured is chronically
				ill or terminally ill, the settlement provider shall determine the insured's
				life expectancy by processes which include obtaining a written statement from
				the insured's licensed attending physician affirming that such insured is
				chronically ill or terminally ill.
D. "Net face amount" means the amount of the
				life insurance policy or certificate that is the subject of a settlement
				contract less any outstanding debts or liens.
E. "Patient identifying information" means an
				insured's name, address, telephone number, facsimile number, electronic mail
				address, photograph or likeness, employer, employment status, Social Security
				number, or any other information that is likely to lead to the identification
				of the insured.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-5 - Standards for Evaluation of Reasonable Payments

Current through 2024-29, July 17, 2024
A.
				For viatical settlements, in which the insured is chronically or terminally
				ill, the compensation for viaticating a life insurance policy or certificate on
				which no future premium is due, whether because it is a paid-up policy, because
				of a disability waiver, or for any other reason, shall not be less than the
				following amounts:
Insured's Life Expectancy
Minimum Percentage
of Net Face
							 Amount
Received by Viator
Less than 6 months
(81%)
At least 6 but less than 12 months
(77%)
At least 12 but less than 18 months
(74%)
At least 18 but less than 24 months
(70%)
24 months or more
(55%)
B. A
				settlement producer or provider may not seek or obtain any compensation from
				the viator.
C. Except as provided
				in subsection E, the viator will not be responsible for any future premiums
				after the date of the settlement contract, and the amount of compensation
				received by the viator may not be reduced by the amount of premium required to
				keep the policy in force, except as provided in subsection D.
D. If the life expectancy is less than 30
				months and future premium is due on the policy, the minimum amounts in
				Subsection A may be reduced by the amount of premium due during the insured's
				life expectancy.
E. If a settlement
				provider enters into a settlement contract that allows the viator to retain an
				interest in the policy, the settlement contract shall contain the following
				provisions:
(1) A provision that the
				settlement provider will effect the transfer of the amount of the death benefit
				only to the extent or portion of the amount viaticated. Benefits in excess of
				the amount viaticated shall be paid directly to the viator's beneficiary by the
				insurance company;
(2) A provision
				that the settlement provider will, upon acknowledgment of the perfection of the
				transfer, either;
(a) Advise the insured, in
				writing, that the insurance company has confirmed the viator's interest in the
				policy; or
(b) Send a copy of the
				instrument sent from the insurance company to the settlement provider that
				acknowledges the viator's interest in the policy; and
(3) A provision that apportions the premiums
				to be paid by the settlement provider and the viator. It is permissible for the
				viatical settlement contract to specify that all premiums shall be paid by the
				viatical settlement company. The contract may also require that the viator
				reimburse the viatical settlement provider for the premiums attributable to the
				retained interest.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-6 - Reporting Requirements

Current through 2024-29, July 17, 2024
On or before March 1 of each year, in accordance with
				   24-A
				  M.R.S.A. §6806, each settlement provider
				  licensed in this State shall make a report to the Superintendent. This report
				  must be certified by an officer of the settlement provider, and must provide
				  the following information:
A. For each
				settlement contract entered into in the preceding calendar year:
(1) Date the settlement contract was entered
				into;
(2) Life expectancy of the
				insured as of the date of the settlement contract;
(3) Face amount of the policy;
(4) Amount of compensation or anything of
				value paid to the viator by the settlement provider pursuant to the settlement
				contract;
(5) Name of the
				settlement producer involved; and
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-7 - General Rules

Current through 2024-29, July 17, 2024
A. Payment of the
				proceeds to the viator pursuant to a settlement contract must be made in a lump
				sum. The settlement provider, settlement producer, trustee, or escrow agent may
				not retain any portion of the viator's proceeds.
B. A settlement provider or settlement
				producer must obtain from a person or entity that is provided with patient
				identifying information concerning an applicant or viator a signed affirmation
				that the person or entity will not further divulge the information without
				first procuring the express written consent of the insured in each instance in
				which the information is to be divulged. Notwithstanding the foregoing, if a
				settlement provider or settlement producer is served with a subpoena by a court
				or administrative officer with jurisdiction over the matter and compelled to
				produce records containing patient identifying information, it shall notify the
				viator and the insured within five (5) business days after receiving notice of
				the subpoena.
C. The standards
				related to advertising found in Section
				9 of this rule and in
				 24-A M.R.S.A.
				§6817 applicable to viatical and life
				settlements must be followed.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-8 - Prohibited Practices

Current through 2024-29, July 17, 2024
A. A settlement
				provider or settlement producer may not purchase annuity contracts, variable
				life contracts or contracts granting endowment benefits.
B. A settlement provider or settlement
				producer may not provide patient identifying information to any person except
				as permitted by
				 24-A
				M.R.S.A.
				§6806(2).
C. A settlement provider or settlement
				producer may not discriminate in the making of settlement contracts on the
				basis of race, age, sex, national origin, creed, religion, occupation, marital
				or family status or sexual orientation, or discriminate between viators with or
				without dependents.
D. A settlement
				provider or settlement producer may not pay or offer to pay any finder's fee,
				commission or other compensation to any insured's health care provider,
				attorney, accountant or other person providing medical, legal or financial
				planning services to or on behalf of the viator, or to any other person acting
				as an agent of the viator with respect to the settlement contract, other than
				compensation from the settlement provider to the settlement producer acting in
				accordance with Viatical and Life Settlements Act and this rule.
E. A settlement provider may not collect a
				fee for acting as a producer in a settlement transaction or settlement loan
				agreement.
F. A settlement provider
				or settlement producer may not solicit investors who could influence the
				treatment of the illness of the insured whose coverage would be the subject of
				the investment.
G. A settlement
				provider may not use a longer life expectancy than is realistic in order to
				reduce the minimum payout to which the viator is entitled.
H. A settlement provider or settlement
				producer may not solicit, offer, or negotiate with any person for the purpose
				of purchasing a life insurance policy from an insurer if that policy is to be
				used solely and specifically as part of a settlement transaction.
I. A settlement provider or settlement
				producer may not provide false or misleading information to an insurer
				regarding a life insurance policy which is the subject of a settlement
				transaction.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-9 - Advertising

Current through 2024-29, July 17, 2024
This section shall apply to any advertising of viatical or
				  life settlement contracts, products or services intended for dissemination in
				  this State, including internet advertising viewed by persons located in this
				  State. In addition to the specific requirements in
				   24-A M.R.S.A.
				  §6817 and Section
				  10
				  of this rule, all such advertising must comply with the specific standards of
				  this section.
A. No advertisement
				shall use the terms "investment," "investment plan," "founder's plan,"
				"deposit," "expansion plan," "profit," "profits," "profit-sharing," "interest
				plan," "savings plan," "private pension plan," "retirement plan" or other
				similar terms in connection with a settlement contract in a context or under
				such circumstances or conditions as to have the capacity or tendency to mislead
				or deceive a viator, purchaser or prospective purchaser.
B. Certain advertisements are deemed false
				and misleading on their face and therefore prohibited. False and misleading
				settlement contract advertisements include, but are not limited to, the
				following representations:
(1) "Guaranteed,"
				"fully secured," "100% secured," "fully insured," "secure," "safe," "backed by
				rated insurance company(ies)," "backed by federal law," "backed by state law,"
				or "state guaranty funds," or similar representations;
(2) "No risk," "minimal risk," "low risk,"
				"no speculation," "no fluctuation," or similar representations;
(3) "Qualified or approved for individual
				retirement accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee
				pensions SEP, 403(b), Keogh plans, TSAs, other retirement account rollovers,"
				"tax deferred," or similar representations;
(4) Use of the word "guaranteed" to describe
				the fixed return, annual return, principal, earnings, profits, investment, or
				similar representations;
(5) "No
				sales charges or fees" or similar representations;
(6) "High yield," "superior return,"
				"excellent return," "high return," "quick profit," or similar
				representations;
(7) Purported
				favorable representations or testimonials about the benefits of settlement
				contracts as an investment, taken out of context from newspapers, trade papers,
				journals, radio and television programs, and all other forms of print and
				electronic media.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-10 - Information Sharing

Current through 2024-29, July 17, 2024
A. In accordance
				with
				24-A M.R.S.A.
				§6809(1)(C), for any
				policy issued less than 2years from the date of application for a settlement
				contract, a settlement provider must obtain the insured's written consent to
				the release of the insured's medical records to the insurer that issued the
				policy covering the life of the insured.
B. Within three days of receipt of a signed
				application for a settlement, the settlement provider shall deliver to the life
				insurance company issuing the policy to be viaticated a copy of each of the
				following documents:
(1) The application for
				the settlement;
(2) The settlement
				contract being proposed;
(3) The
				witnessed document required under
				 24-A M.R.S.A.
				§6809(1)(B);
(4) The written statement required under
				 24-A M.R.S.A.
				§6809(1)(A) in which a
				licensed attending physician indicates that the viator or seller is of sound
				mind and under no constraint or undue influence; and,
(5) The release of information form signed by
				the insured for the settlement provider required under Subsection A of this
				section.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-11 - Severability

Current through 2024-29, July 17, 2024
If any section, subsection, term, provision, or application
				  of this rule shall be adjudged invalid for any reason, such judgment shall not
				  impair or invalidate any other section, term, provision, or application, and
				  the remainder of this rule shall continue in full force and
				  effect.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 931 - VIATICAL AND LIFE SETTLEMENTS › Section 031-931-12 - Effective Date

Current through 2024-29, July 17, 2024
This rule became effective July 19, 2006.
APA Office Note: Chapter 931 repeals and replaces
				  Chapter 930, Viatical Settlements, which became effective on September 22,
				  2000.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 940 - REQUIREMENTS FOR HEALTH INSURANCE RATE FILINGS AND DATA REPORTING › Section 031-940-1 - Purpose

Current through 2024-29, July 17, 2024
A. This rule establishes procedures and
				guidelines for filing individual and group health insurance rates and health
				maintenance organization (HMO) rates in this State. The rule is intended to
				inform those filing health insurance rates of the types of data required to
				permit the Bureau to appropriately review the filings submitted and to provide
				meaningful rate information to the public.
B. This rule establishes procedures for
				annual reporting of medical loss ratios and payment of rebates in accordance
				with federal and Maine law.
C.
				Annual data reporting requirements set forth in Appendix A enable the Bureau to
				monitor the continued viability of Maine's small group and individual health
				plan markets.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 940 - REQUIREMENTS FOR HEALTH INSURANCE RATE FILINGS AND DATA REPORTING › Section 031-940-2 - Authority

Current through 2024-29, July 17, 2024
This rule is adopted by the Superintendent pursuant to Title
				  24 M.R.S.A. § 2321 and Title 24-A M.R.S.A. §§ 212, 405-A(2)(E),
				  2413, 2736, 2736-C, 2808-B, 2839, 4207, and 4309-A.
Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 940 - REQUIREMENTS FOR HEALTH INSURANCE RATE FILINGS AND DATA REPORTING › Section 031-940-3 - Applicability and Scope

Current through 2024-29, July 17, 2024
This rule applies to all individual, group, and blanket
				  health insurance rates and health maintenance organization rates that are
				  subject to Title 24 M.R.S.A. § 2321 and Title 24-A M.R.S.A. §§
				  405-A, 2736, 2736-C, 2808-B, 2839, and 4207. To the extent provided in Section
				  15, this rule is applicable to
				  multiple-employer welfare arrangements licensed pursuant to Title 24-A M.R.S.A.
				  Chapter 81 and captive insurance companies licensed pursuant to Title 24-A
				  M.R.S.A. Chapter 83. This rule does not apply to rates for credit insurance
				  subject to Title 24-A M.R.S.A. Chapter 37, Medicare supplement insurance
				  subject to Title 24-A M.R.S.A. Chapter 67, or long-term care insurance subject
				  to Title 24-A M.R.S.A. Chapters 68 and 68-A.