C.M.R. 02, 031, ch. 880 - SALE OF INSURANCE PRODUCTS BY FINANCIAL INSTITUTIONS AND SUPERVISED LENDERS

SUMMARY: In 1997, the Maine Legislature enacted P.L. 1997, c. 315, "An Act to Promote Parity in the Regulation of Insurance Sales by Federally and State-chartered Financial Institutions."

The law authorizes the Superintendent of Insurance, the Superintendent of Banking and the Director of Consumer Credit Regulation (hereinafter collectively referred to as the "Regulators") to undertake joint rulemaking to address issues regarding sales of insurance products by financial institutions and supervised lenders. Specifically, the regulators were directed to address 1) signage; 2) the physical location at which the sales of insurance take place; and 3) identification of insurance agencies, producers and consultants affiliated with financial institutions, credit unions, financial institution holding companies and supervised lenders. This rule establishes requirements in these areas in order to minimize the possibility of customer confusion and provide adequate consumer protections.

While this rule establishes requirements regarding signage, physical location, and the identification of affiliated insurance agencies, producers, and consultants, its provisions are in addition to any notice, disclosure, or consumer protection requirements established by P.L. 1997, c. 315; any requirements imposed by the Banking, Consumer Credit, or Insurance Codes; and any other requirements contained in applicable state or federal laws or regulations.

Finally, this rule does not apply to transactions in which an institution or its affiliate is exempt from licensure as an insurance agency, producer, or consultant pursuant to 24-A § 1443-A(2), or to transactions which are not subject to the provisions of Article 4, Part 4 of the Maine Consumer Credit Code ( 9-A M.R.S.A. §4 - 401 et seq.) or 9-B M.R.S.A. §448.