4.__Penalties.__A person who is found to have violated this chapter or rules of the superintendent may be ordered in an adjudicatory proceeding to pay to the superintendent a civil penalty in an amount determined by the superintendent of not more than $500 per violation and not more than $10,000 in the aggregate for all violations of a similar nature.__For purposes of this section, violations are of a similar nature if the violations consist of the same or similar course of conduct, action or practice, irrespective of the number of times the act, conduct or practice that is determined to be a violation of this chapter occurred.

§7011.__Authority to develop rules

The superintendent may adopt rules necessary to implement this chapter.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

§7012.__Effective date

1.__Application.__Service contracts entered into prior to January 1, 2000, and renewals of those contracts, may, but are not required to, comply with this chapter.__Providers and other persons are not required to comply with this chapter until January 1, 2000.__A provider or other person may, but is not required to, implement the requirements of this chapter prior to January 1, 2000.__The failure of a provider or other person to comply with this chapter or otherwise to administer a service contract in the manner required by this chapter prior to January 1, 2000 is not admissible in any court, arbitration or alternative dispute resolution proceedings and that failure may not be otherwise used to prove that the action of any person or the service contract was unlawful or otherwise improper.

SUMMARY

This bill establishes regulatory standards for providers of service contracts and exempts these contracts from all other provisions of the Maine Insurance Code. It also exempts from the Maine Insurance Code:

1. Warranties;

2. Maintenance agreements;