REVIEW REQUIREMENTS |
REFERENCE |
DESCRIPTION OF REVIEW
STANDARDS REQUIREMENTS |
LOCATION OF STANDARD IN FILING |
GENERAL REQUIREMENTS
FOR ALL FILINGS |
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ELECTRONIC FILINGS |
Insurance Bulletin 360
Title 24-A § 2304-A Rate filings
Title 24-A § 2412 Filings, approval of forms |
Maine requires that all rate and form filings be filed electronically through the NAIC’s System for Electronic Rate and Form Filings (SERFF). See also Bureau of Insurance Bulletin 360 Electronic Submissions of Rate and Form Filings. |
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COVER LETTER |
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Cover letters may be attached to the Supporting Documentation Tab or the text entered under the Filing Description located under the General Information tab in SERFF |
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EFFECTIVE DATE |
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Policies effective at 12:01 AM Standard Time
Include proposed effective date on SERFF General Information |
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LIMITATIONS/RESTRICTIONS ON TRANSACTING BUSINESS |
Title 24-A - §404. Certificate of authority required; enforcement; penalty |
Must have certificate of authority to transact business |
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LINE OF AUTHORITY |
Commercial Multiple Peril |
Must have requisite certificate of authority to transact business before submitting rate/rule/form filings |
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FILING EXEMPTIONS |
Title 24-A - §2412-A. Large commercial contracts |
Large commercial risks exempt from filing—refer to statute for criteria and definition of large commercial risk |
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THIRD PARTY FILERS AUTHORITY |
Title 24-A - §2412. Filing, approval of forms
Title 24-A - §2304-A. Rate filings |
Must include authorization to communicate directly with third party filers |
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FORMS-POLICY PROVISIONS |
REFERENCE |
DESCRIPTION OF REVIEW
STANDARDS REQUIREMENTS |
LOCATION OF STANDARD IN FILING |
ACCESS TO COURTS |
Title 24-A - §2433. Jurisdiction of courts, limitation of actions |
Maine courts have jurisdiction |
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ACTION AGAINST COMPANY |
Title 24-A - §2433. Jurisdiction of courts, limitation of actions |
Insured must be given two years from date of loss to bring suit against insurer |
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AMBIGUOUS & MISLEADING |
Title 24-A - §2413. Grounds for disapproval |
Forms shall be disapproved by the superintendent if they contain or incorporate by reference any inconsistent, ambiguous or misleading clauses. |
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APPLICATIONS |
Title 24-A - §2411. Representations in applications
Title 24-A §2412. Filing, approval of forms
Title 24-A - §2186. Insurance fraud prevention |
All statements are considered representations not warranties.
Must file applications only if to be made part of the policy.
The Maine Fraud Warning must appear permanently affixed on all applications (i.e. new business, renewal, supplemental, etc…). |
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ARBITRATION |
Title 24-A - §2433. Jurisdiction of courts, limitation of actions |
Arbitration must take place in the Maine County in which the policy was issued for delivery. |
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BLANK ENDORSEMENTS |
Title 24-A - §2412. Filing, approval of forms |
Blank endorsements are considered manuscript forms and generally not acceptable. Each manuscripted change is subject to review and can be filed as a consent to form filing pursuant to 24-A § 2308(2). |
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CANCELLATION & NON-RENEWAL |
Title 24-A - §3007. Cancellation and nonrenewal
Title 24-A - §2908. Cancellation and nonrenewal |
Maine amendatory endorsement must include statutory grounds for mid-term cancellation; statutory notice required for both cancellation & nonrenewal; Maine amendatory endorsement must include mailing time language |
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CONTENT OF POLICIES |
Title 24-A - § 3003Combination coverage
Title 24-A - §3001. Contracts subject to general provisions
Title 24-A - §2901. Contracts subject to general provisions
Title 24-A - Chapter 27, THE INSURANCE CONTRACT
Title 24-A - MAINE INSURANCE CODE
Title 24-A – Chapter 39, Casualty Insurance Contracts |
Property & Casualty contracts are subject to provisions of Chapter 41, Chapter 39 and other applicable provisions of Title 24-A (The Maine Insurance Code) |
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CREDIT SCORING |
Title 24-A - §2169-B. Use of consumer reports in insurance underwriting
Insurance - Bulletin 329 |
Insurance Bulletin 329 and statute contain provisions relating to the use of credit information and credit insurance scores |
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DISCRIMINATION |
Title 24-A §2162. Unfair discrimination, rebates prohibited-- property, casualty, surety insurance |
Restrictions on policy provisions relating to benefits not associated with loss and reductions in premium associated with savings and expenses. |
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FICTITIOUS GROUPS |
Title 24-A - §2172. Fictitious groups prohibited |
Prohibited. |
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FRAUD WARNING |
Title 24-A - §2186. Insurance fraud prevention |
Statutory (or substantially similar) wording must be included on all applications (i.e. new business, renewal, supplemental, etc…) and claim forms |
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GROUP POLICIES |
Title 24-A §2951. Group property and casualty insurance |
Not Permitted. |
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LEAD |
Title 24-A - §2413. Grounds for disapproval
Title 22 - Chapter 252, LEAD POISONING CONTROL ACT |
Maine permits the exclusion of lead except in the case of any dwelling unit or child-occupied facility (as defined in (22 M.R.S.A. § 1315(1-C)). In these cases the exclusion may apply only to bodily injury and not be effective until 31 days or more (an extension) after the State of Maine Department of Health Services or a department-licensed lead inspector has given notice of the existence of a lead hazard. |
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LOSS PAYEE |
Title 24-A §3003. Combination coverage
Insurance Bulletin 372
Title 24-A Ch. 41: Property Insurance Contracts - Subchapter 3: LIEN OF MORTGAGEES ON POLICIES |
Mortgagee notification must be consistent with Standard Fire Policy |
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LOSS SETTLEMENTS |
Title 24-A §3003. Combination coverage
Title 24-A - §3004-A. Actual cash value
Title 24-A §2436. Interest on overdue payments |
Statutory definition of ACV |
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LOSS VALUATION |
Title 24-A - §3004-A. Actual cash value |
Actual Cash Value defined as replacement cost less depreciation |
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MINIMUM STANDARDS FOR CONTENT (POLICIES AND STANDARD FORMS) |
Title 24-A §3003. Combination coverage
Title 24-A §2414. Standard provisions, in general
Title 24-A - §2901. Contracts subject to general provisions
Title 24-A - §3001. Contracts subject to general provisions
Title 24-A - §3004-A. Actual cash value
Title 24-A - Chapter 27, THE INSURANCE CONTRACT
Title 24-A – Chapter 39, Casualty Insurance Contracts
Title 24-A - MAINE INSURANCE CODE |
Statutory definition of ACV applies
Property & Casualty contracts are subject to provisions of Chapter 41, Chapter 39 and other applicable provisions of Title 24-A (The Maine Insurance Code) |
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MORTGAGEE/LIENHOLDER |
Title 24-A §3003. Combination coverage
Insurance Bulletin 372 |
Must be consistent with Standard Fire Policy. |
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NOTICE OF CANCELLATION |
Title 24-A §2908. Casualty insurance contracts.
Title 24-A §3007. Property insurance contracts.
Insurance - Bulletin 201 |
Minimum 10 days advance notice required for cancellation & must allow for 3 days mail time, i.e., proof of mailing is not proof of receipt until the third calendar day after mailing; Also, notice must inform insured of right to request a hearing within 45 days of receipt of notice |
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NOTICE OF NON-RENEWAL |
Title 24-A §2908. Casualty insurance contracts.
Title 24-A §3007. Property insurance contracts.
Insurance - Bulletin 201 |
Minimum 30 days advance notice required for nonrenewal & must allow for 3 days mail time, i.e., proof of mailing is not proof of receipt until the third calendar day after mailing |
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PAYMENT OF LOSS TIME |
Title 24-A §2436. Interest on overdue payments |
Payment within thirty days and interest on overdue payments of 1.5% per month. |
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POST JUDGMENT INTEREST |
Insurance Bulletin 353
Title 14 § 1602-C
Interest after judgment |
Maine statutory law provides for the payment of post-judgment interest and case law has held that an insurer must pay post-judgment interest as a supplemental payment without regard to the policy terms (i.e. policy limit, sub-limits, exclusions, deductibles, retentions, etc…). |
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PRIOR APPROVAL |
Title 24-A - §2412. Filing, approval of forms |
Statute contains a deemer provision. |
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PRIVACY NOTICE |
Title 24-A - §2206. Notice of insurance information practices |
See Title 24-A, Ch. 24 generally for insurance information and privacy protection. |
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REBATES |
Title 24-A §2162. Unfair discrimination, rebates prohibited-- property, casualty, surety insurance
Title 24-A §2163. Receipt of rebate, illegal inducement prohibited
Insurance Bulletin 233 |
Sales inducements rebates prohibited unless contained in policy. |
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STANDARD FIRE POLICY |
Title 24-A §3003. Combination coverage |
Property coverage must include Maine Standard Fire Policy provisions (24-A M.R.S.A. § 3002). |
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SUBROGATION |
Title 24-A - §2910-A. Subrogation; medical payments coverage |
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SUIT |
Title 24-A - §2433. Jurisdiction of courts, limitation of actions |
Insured must be given two years from date of loss to bring suit against insurer |
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TERRORISM |
Insurance Bulletin 348 |
Permitted on this line of business but cannot exclude Standard Fire Policy |
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TERRORISM |
Insurance - Bulletin 348 |
Permitted on this line of business but cannot exclude Standard Fire Policy perils Insurance - Bulletin 348 |
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VICARIOUS LIABILITY |
Title 14 - §304. Liability of parents or legal guardians for damage by children |
Parents/legal guardians liable for action of minor children up to $800 |
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VOIDANCE |
Title 24-A - §2411. Representations in applications |
Do not allow insurers to void coverage for concealment, misrepresentation or fraud except in compliance with Maine
Case law. See American Home Assurance Co. v. Ingeneri, 479 A.2d 897 (Me. 1984). |
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WARRANTIES |
Title 24-A - §2411. Representations in applications |
Statements on applications are deemed to be representations, not warranties. |
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RATE, RULE, RATING PLAN, CLASSIFICATION, AND TERRITORY FILING REQUIREMENTS |
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"A" RATED RISKS |
Title 24-A - §2304-A. Rate filings |
“a” rates and ranges must be filed along with any rates designated as “refer to company” or similar phrasing. |
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ADOPTIONS OF RATE SERVICE ORGANIZATIONS (RSO) FILINGS |
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
Insurer may satisfy rate filing requirements by adopting advisory organization filings and filing loss costs multiplier. |
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CHARGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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CATASTROPHE HAZARDS |
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings |
Rate provisions must be supported by experience or relevant catastrophe models. |
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COMPETITION |
Title 24-A - §2306. Disapproval of filing |
May support filing by citing specific competitor filing |
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CONSENT-TO-RATE |
Title 24-A - §2308. Excess rates |
Permitted if rating manual filing previously filed does not contemplate the specific risk being assumed. |
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CREDIBILITY |
Title 24-A § 2303
Making of Rates
Title 24-A - §2304-A. Rate filings |
Credibility standard must be supported. |
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CREDIBILITY AND OTHER FACTORS |
Title 24-A, §2303: Making of rates |
Rate or loss cost multiplier calculation should reflect credibility and other factors |
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CREDIT SCORING AND REPORTS |
Title 24-A - §2169-B. Use of consumer reports in insurance underwriting
Insurance - Bulletin 329 |
Insurance Bulletin 329 and statute contain provisions relating to the use of credit information and credit insurance scores
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DISCOUNTS |
Title 24-A - §2304-A. Rate filings
Title 24-A - §2303. Making of rates |
Credits must be supported. |
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EXPENSE MODIFICATION PLAN |
Insurance Bulletin-233 |
Must be filed as part of rating plan. Rate credits resulting from a negotiated/reduced commission are limited to no greater than 10% (see Bulletin 233). |
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EXPENSES |
Title 24-A - §2303. Making of rates |
Rate or loss cost multiplier calculation should reflect expenses of insurer |
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EXPERIENCE |
Title 24-A - §2303. Making of rates |
Rate or loss cost multiplier calculation should reflect experience of insurer |
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EXPERIENCE RATING |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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GROUP POLICIES |
Title 24-A §2951. Group property and casualty insurance |
Not permitted. |
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IRPM/ SCHEDULE RATING |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan. The maximum aggregate debit/credit permitted is 40%. |
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JUDGMENT |
Title 24-A - §2303. Making of rates |
Rate or loss cost multiplier calculation reflect judgment of insurer |
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LARGE DEDUCTIBLE |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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LOSS COST MULTIPLIERS |
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
Insurer may satisfy rate filing requirements by adopting advisory organization filings and filing loss costs multiplier. |
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LOSS COSTS |
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
Insurer may satisfy rate filing requirements by adopting advisory organization filings and filing loss costs multiplier |
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MINIMUM PREMIUM RULES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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MULTI-TIER |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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OTHER FEES ASSOCIATED WITH THE ISSUANCE OF A POLICY, DELIVERY OF A POLICY OR COLLECTION OF PREMIUM |
Title 24-A - §2304-A. Rate filings
Title 24-A - § 2403. “Premium” defined |
Must be filed as part of rating plan |
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OTHER—Large Commercial Risks |
Title 24-A - §2412-A. Large commercial contracts |
Insurers exempt from filing rate/rule/forms to be issued specifically to large commercial risks; refer to statute for qualifying size criteria of risks in this category. |
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PAYMENT PLANS |
Title 24-A - §2304-A. Rate filings
Title 24-A - § 2403. “Premium” defined |
Must be filed as part of rating plan |
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PRICING |
Title 24-A - §2302-A. Definitions
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier. |
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PROFIT LOADING |
Title 24-A - §2303. Making of rates |
Rate or loss cost multiplier calculation may reflect profit-loading and must include consideration for investment income |
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RATE/LOSS COST SUPPORTING INFORMATION |
Title 24-A - §2302-A. Definitions
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier |
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RATING PLAN REQUIREMENTS |
Title 24-A - §2304-A. Rate filings |
All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier |
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RETROSPECTIVE RATING |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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RETURN ON EQUITY/ INVESTMENT INCOME |
Title 24-A - §2303. Making of rates.
Title 24-A - §2304-A. Rate filings |
Profit must give consideration to investment income |
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RISK CLASSIFICATION |
Title 24-A - §2303. Making of rates |
Risks may be grouped by classifications for the establishment of rates and minimum premiums |
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SERVICE CHARGES (COLLECTION EXPENSE SUCH AS, BUT NOT LIMITED TO, INSTALLMENT, NSF, REINSTATEMENT, LATE & CONVENIENCE FEES) |
Title 24-A - §2304-A. Rate filings
Title 24-A - § 2403. “Premium” defined |
Must be filed as part of rating plan |
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SMALL DEDUCTIBLE |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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SUPPORTING DATA |
Title 24-A - §2302-A. Definitions
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings
Title 24-A - §2304-B. Reference filings
Insurance - Bulletin 176 |
All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier |
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SURCHARGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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TRENDING |
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings |
All aspects of pricing must be supported by experience and/or may adopt advisory organization reference filing and file loss costs multiplier |
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