Sec. 1. 24-A MRSA §2163-A, as enacted by PL 1997, c. 457, §41, is amended to read:

§2163-A. Permitted activities

Notwithstanding any other provision in sections 2160 to 2163, an insurer, employee of an insurer or producer may offer to give gifts in connection with marketing for the sale or retention of contracts of insurance provided the cost does not exceed $20 per year per policy or quote, and conduct raffles or drawings, so long as there is no participation costs to entrants, in which case prizes may be valued in excess of $20 but not more than $100. 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, check or other cash equivalent.

SUMMARY

This bill amends the insurance rebating law by capping the prize that may be offered in a raffle at a value of $100. The bill also clarifies that prizes and gifts may not be in the form of cash.