Legislative Proposals
DPFR-2
STATE OF MAINE
IN THE YEAR OF OUR LORD
TWO THOUSAND AND SIX
___________
_______L.D.______
AN ACT to Enhance Consumer Awareness of Insurance Sales Activity
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §1445, sub-§2, as amended
by PL 1999, c. 225, §4, is further 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.;
or
C. Use business cards in connection with producer
activities that fail to clearly identify the producer as an insurance
producer, insurance agent, insurance salesperson, or a substantially
similar term indicating that his or her business activity involves
the sale of insurance.
SUMMARY
This bill requires insurance producers to identify themselves as engaged
in insurance sales activities on their business cards, in order to protect
the interests of both the consumer and the producer by clearly identifying
their business activity.
