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Bulletin 277

Filing requirements for property and casualty tier rated programs

The Bureau has become aware that some insurers may not be in compliance with filing requirements relating to tier rated programs for auto insurance, homeowners insurance, and other property and casualty lines.

Property and Casualty filings are governed by Title 24-A M.R.S.A. § 2304-A, which requires the filing of "every manual rate, minimum premium, class rate, rating schedule or rating plan and every other rating rule," and every proposed modification of any of these filings. "Rating rules" include any established criteria or guidelines that affect premiums charged to insureds.

In particular, the guidelines used by insurers to assign insureds to specific rating classifications, or by insurance groups marketing on a coordinated basis to assign insureds to specific companies within the group, are part of the insurer's rating plan and must be filed with the Superintendent.

In addition, Chapter 40 of Maine Insurance Law outlines the criteria for Mass Marketing of Property/Casualty Insurance. No insurer may use underwriting standards for individual risk selection in a mass marketing plan that are, on the whole, more restrictive than the standards used by that insurer for individual risk selection in the sale of the same kind of insurance in this State.

Workers' Compensation case filings are governed by Title 24-A M.R.S.A. § 2382-C, which requires insurers file "all rates and supplementary rate information." (Supplementary rate information includes rating rules, rating plans, and other similar information needed to determine the applicable premium for an insured).

Questions regarding this Bulletin should be directed to the Property/Casualty Section of the Bureau of Insurance at 207-624-8475.

Dated: __________________________________________
Alessandro A. Iuppa
Superintendent of Insurance

NOTE: This bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties or privileges nor is it intended to provide legal advice. Readers are encouraged to consult applicable statutes and rules and to contact the Bureau of Insurance if additional information is needed.

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Last Updated: September 27, 2010