Amend the bill by striking out all of sections 2, 3 and 4 (page 1, lines 7 to 29 in L.D.) and inserting the following:
‘Sec. 2. 24-A MRSA §1420-C, sub-§2, ¶F, as enacted by PL 2001, c. 259, §24, is amended to read:
F. A person who is not a resident of this State who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that if that person is otherwise licensed as an insurance producer to sell, solicit or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or
Sec. 3. 24-A MRSA §1420-C, sub-§2, ¶G, as enacted by PL 2001, c. 259, §24, is amended to read:
G. A salaried full-time employee who counsels or advises that person's employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer if the employee does not sell or solicit insurance or receive a commission . ; or
Sec. 4. 24-A MRSA §1420-C, sub-§2, ¶H is enacted to read:
H. A person who offers to sell or sells portable electronic device insurance pursuant to a license issued by the superintendent under chapter 89.’
Amend the bill in section 5 in §7001 by inserting after subsection 2 the following:
Amend the bill in section 5 in §7001 in subsection 4 in the 4th line (page 2, line 14 in L.D.) by inserting after the following: " theft," the following: ' inoperability due to'
Amend the bill in section 5 in §7001 in subsection 4 in the 5th line (page 2, line 15 in L.D.) by striking out the following: " applicable perils" and inserting the following: ' similar causes of loss'
Amend the bill in section 5 in §7001 in subsection 4 by striking out all of paragraph A (page 2, line 17 in L.D.) and inserting the following:
‘ A. A service contract or extended warranty providing coverage limited to the repair, replacement or maintenance of property for the operational or structural failure of property due to a defect in materials, workmanship, accidental damage from handling or normal wear and tear;’
Amend the bill in section 5 in §7001 in subsection 4 by striking out all of paragraph C (page 2, lines 20 and 21 in L.D.) and inserting the following:
‘ C. Homeowner's or renter's insurance, private passenger automobile insurance, commercial multiple peril insurance or any similar policy.’
Amend the bill in section 5 in §7001 by striking out all of subsection 6 (page 2, lines 27 and 28 in L.D.) and inserting the following:
Amend the bill in section 5 in §7001 by renumbering the subsections to read consecutively.
Amend the bill in section 5 in §7002 in subsection 1 in the first and 2nd lines (page 2, lines 32 and 33 in L.D.) by striking out the following: " pursuant to section 1420-F" and inserting the following: ' under this chapter'
Amend the bill in section 5 in §7002 in subsection 3 in the 2nd line (page 3, line 4 in L.D.) by striking out the following: " quarterly thereafter" and inserting the following: ' upon request by the superintendent'
Amend the bill in section 5 in §7003 in subsection 1 in paragraph C in subparagraph (2) (page 3, line 22 in L.D.) by striking out the following: " agency" and inserting the following: ' entity'
Amend the bill in section 5 in §7003 in subsection 1 by striking out all of paragraphs D and E (page 3, lines 28 to 35 in L.D.) and inserting the following:
‘ D. Summarize the process for filing a claim, including a description of any requirements to return the portable electronic device and the maximum fee applicable if the customer fails to comply with any equipment return requirements; and
E. State that the customer may cancel enrollment for coverage under a portable electronic device insurance policy at any time and the person paying the premium must receive a refund of any applicable unearned premium.’
Amend the bill in section 5 in §7003 in subsection 2 in the 2nd line (page 3, line 37 in L.D.) by inserting after the following: " group or" the following: ' master commercial'
Amend the bill in section 5 in §7003 in subsection 3 in the last line (page 4, line 3 in L.D.) by striking out the following: " policy" and inserting the following: ' program'
Amend the bill in section 5 in §7004 in subsection 1 in paragraph B in the first and 2nd lines (page 4, lines 12 and 13 in L.D.) by striking out the following: " appoints a supervising agency" and inserting the following: ' either directly supervises or appoints a supervising entity'
Amend the bill in section 5 in §7004 in subsection 1 in paragraph B by striking out all of subparagraph (1) (page 4, lines 17 to 22 in L.D.) and inserting the following:
‘ (1) The training must be delivered to all employees and authorized representatives of the vendor who are directly engaged in the activity of selling or offering portable electronic device insurance. The training may be provided in electronic form. If conducted in electronic form the supervising entity shall implement a supplemental education program that is conducted and overseen by licensed employees of the supervising entity to supplement the electronic training; and
Amend the bill in section 5 in §7004 by striking out all of subsection 2 (page 4, lines 29 to 42 in L.D.) and inserting the following:
Amend the bill in section 5 by striking out all of §7005 (page 5, lines 1 to 12 in L.D.) and inserting the following:
Amend the bill in section 5 in §7006 in subsection 1 in the last line (page 5, line 17 in L.D.) by striking out the following: " 60" and inserting the following: ' 30'
summary
This amendment is the majority report of the committee and does the following.
1. It provides an exemption from required licensure as an insurance producer for persons who sell or offer portable electronic device insurance. The bill requires all employees or authorized representatives of a vendor to be licensed.
2. It adds definitions of "limited lines license" and "location" and makes clarifying changes to other definitions in the bill.
3. It clarifies that training for employees and representatives of a vendor selling or offering portable electronic device insurance may be conducted in electronic form and, if conducted in electronic form, the supervising entity shall implement a supplemental education program.
4. It removes the specific penalties imposed in the bill and authorizes the superintendent to impose penalties in accordance with current law. It also clarifies the authority of the superintendent to suspend the authority of a vendor to transact portable electronic device insurance for a violation.
5. It reduces the amount of time of the notice period after which an insurer may terminate or change the conditions of a policy of portable electronic device insurance from 60 days to 30 days.
FISCAL NOTE REQUIRED
(See attached)