Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 130 - DISTRIBUTION OF ANNUITIES THROUGH FINANCIAL INSTITUTIONS (REG. 30)
- Section 029-130-I - AUTHORITY
- Section 029-130-II - PURPOSE
- Section 029-130-III - DEFINITIONS
- Section 029-130-IV - GENERAL PROVISIONS OF THE REGULATION
- Section 029-130-V - FINANCIAL INSTITUTION RESPONSIBILITIES
- Section 029-130-VI - ADVERTISING AND PROMOTION
- Section 029-130-VII - ADEQUATE SEPARATION OF FACILITIES
- Section 029-130-VIII - DISCLOSURES
- Section 029-130-IX - FEDERAL/STATE REGULATIONS
- Section 029-130-X - EFFECTIVE DATE
SUMMARY: Title 9-B MRSA §443(11) and § 467(4) and (5) as enacted under PL 1993 Chapter 322, authorize Maine financial institutions to sell directly, or arrange for the sale of, through a licensed third party, annuities purchased from a licensed insurance company. These statutory provisions became effective October 13, 1993.
In addition to the changes made to the Banking Code, certain provisions in the Insurance Code found at Title 24-A, §§ 1514-A, 1517, 1531, and 1875 were also amended. These statutory provisions establish the framework within which a Maine financial institution may plan a program and obtain licensure for the distribution and sale of annuities products.
In late 1985, the Bureau promulgated Regulation #23 governing the leasing of space in a financial institution to licensed insurance professionals for the sale of insurance products. The purpose of Regulation #23, established under the statutory guidelines that were in place at that time, was to provide the regulatory framework for financial institutions to enter into lease arrangements with an insurance agent, broker or consultant for the distribution of insurance products. Recent enactment of PL 1993, Chapter 322 has substantially altered some of those statutory provisions which served as a foundation for Regulation #23.
Regulation #30 establishes the framework within which a financial institution that has a limited annuities license may sell, or arrange for the sale of annuities purchased from a licensed insurance company and share in the commissions. Any arrangements between a Maine financial institution and a licensed insurance agent, broker, or consultant to lease space for the sale of other insurance products will continue to be governed by Banking Regulation #23. As used in this regulation, the words "sell annuities" and "arrange for the sale of annuities" do not include the underwriting of those products, an activity that is not presently permissible for Maine chartered financial institutions.
