S.P. 639 - L.D. 1806
An Act to Clarify the Definition and Licensure of Insurance Consultants, Financial Planners and Investment Advisors
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §1402, sub-§4, ¶¶B and C, as enacted by PL 1997, c. 457, §23 and affected by §55, are repealed.
Sec. 2. 24-A MRSA §1402, sub-§4, ¶D, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:
D. "Consultant" does not include:
(1) An attorney licensed to practice who is actively practicing law in this State;
(2) An insurance actuary and member or associate of the Society of Actuaries or American Academy of Actuaries;
(3) A public accountant certified under Title 32, chapter 113 or a certified public accountant who is certified under Title 32, chapter 113 and in active public practice; or
(4) A licensed insurance producer who receives a fee in lieu of a commission pursuant to section 1450 if the insurance producer receives a fee for the insurance transaction and not for other services provided; or
(5) A financial institution or a financial institution holding company if the insurance advice is given as part of its trust department rendering insurance advice in a fiduciary capacity.; or
(6) A person authorized to act as or on behalf of an investment advisor in accordance with Title 32, section 10303 and 10304, subsection 2-A to the extent such activities entail providing insurance advice incidental to financial planning advice.
Sec. 3. 24-A MRSA §1411, sub-§3, ¶B, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:
B. A licensed insurance producer offering advice concerning a kind of insurance for which the insurance producer is licensed to transact business and does not receive a separate fee for rendering such advice other than commissions or fees for the sale of an insurance or annuity policy, except that this paragraph does not apply to a licensed insurance producer who is also authorized to act as or on behalf of an investment advisor pursuant to section 1402, subsection 4, paragraph D, subparagraph (6);
Sec. 4. 24-A MRSA §1445, sub-§2, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:
2. Prohibited activities. A licensed insurance producer in this State may not:
A. Use knowledge gained as a result of the producer's insurance relationship with the insurance consumer for the producer's own personal gain, other than the receipt of fees or commissions allowed under section 1450, or use knowledge gained as a result of the relationship for the purpose of investing the insurance consumer's money in property or assets in which the insurance producer or the producer's relatives have or will have a personal ownership interest unless that activity is otherwise authorized under insurance, banking or securities laws or rules; or
B. Receive a fee for rendering advice on financial or estate planning or for selling trust packages, if the producer also recommends the purchase of an insurance policy upon which the producer will receive commissions, unless the producer is licensed as a consultant acting in compliance with consultant licensing laws or provides the required documentation in accordance with section 1466, subsection 2.
Sec. 5. 24-A MRSA §1466, sub-§2, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:
2. Life and health consultant. A life and health consultant may charge a consulting fee and receive commissions for the sale of insurance as an insurance producer if both the consulting fee and the insurance commissions are provided for in a written agreement, in a form approved by the superintendent, signed by the client and the consultant. A life consultant shall offset fees against first-year commis
sions received as an insurance producer on the sale of insurance.
Effective September 18, 1999, unless otherwise indicated.
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