Sec. 1. 24-A MRSA §1447, sub-§1, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:

1. Records. The insurance producer or agency shall keep or make accessible at the producer's or agency's place of business a copy of the written appointment or designation from each insurer, health maintenance organization, fraternal benefit society or nonprofit hospital or medical service organization with which the insurance producer or agency has an appointment. The insurance producer shall keep at the producer's place of business complete records of transactions under the license. For the purpose of examination or investigation by the superintendent, records may be maintained in electronic form. As to each insurance policy or contract placed through or sold by the licensee, the records must show:

A. The names of the insurer, health maintenance organization, fraternal benefit society or nonprofit hospital or medical service organization;

B. The number and expiration date of the policy or contract;

C. The premium payable as to the policy or contract;

D. The name and address of the insured;

E. The date and time of every binder made by the insurance producer; and

F. Such other information as the superintendent may reasonably require.

Sec. 2. 24-A MRSA §1447, sub-§3 is enacted to read:

3.__Agency.__If a producer engages in a transaction on behalf of an agency and subsequently maintains a different place of business, the agency shall maintain the records of the transaction.

SUMMARY

This bill clarifies that if a producer engages in a transaction on behalf of an insurance agency and subsequently maintains a different place of business, the duty to keep records of the transaction falls on the insurance agency and not the individual producer.