Skip Maine state header navigation

Agencies | Online Services | Help

Skip First Level Navigation | Skip All Navigation

Commercial Multiple Peril

LINE OF BUSINESS: Commercial Multi Peril LINE(S) OF INSURANCE CODES
    Non-Liability Portion 5.1000
    Liability Portion 5.2000
Code: 5.0000 Builders' Risk Policies 5.0001
    Businessowners Policies 5.0002
    Commercial Package Policy 5.0003
    Manufacturers Output Policies 5.0004
    E-Commerce 5.0005
    Commercial Farm and Ranch 5.0006
    Other CMP Policies 5.0007
IF CHECKLIST IS NOT APPLICABLE, PLEASE EXPLAIN:  
   
   
   

REVIEW REQUIREMENTS

REFERENCE

DESCRIPTION OF REVIEW
STANDARDS REQUIREMENTS

LOCATION OF STANDARD IN FILING

GENERAL REQUIREMENTS
FOR ALL FILINGS

 

 

 

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.

 

COVER LETTER

 

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

 

EFFECTIVE DATE

 

Policies effective at 12:01 AM Standard Time

Include proposed effective date on SERFF General Information

 

LIMITATIONS/RESTRICTIONS ON TRANSACTING BUSINESS

Title 24-A - §404. Certificate of authority required; enforcement; penalty

Must have certificate of authority to transact business

 

LINE OF AUTHORITY

Commercial Multiple Peril

Must have requisite certificate of authority to transact business before submitting rate/rule/form filings

 

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

 

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

 

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

 

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

 

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.

 

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…).

 

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.

 

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).

 

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

 

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)

 

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

 

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.

 

FICTITIOUS GROUPS

Title 24-A - §2172. Fictitious groups prohibited

Prohibited.

 

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

 

GROUP POLICIES

Title 24-A §2951. Group property and casualty insurance

Not Permitted.

 

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.

 

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

 

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

 

LOSS VALUATION

Title 24-A - §3004-A. Actual cash value

Actual Cash Value defined as replacement cost less depreciation

 

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)

 

MORTGAGEE/LIENHOLDER

Title 24-A §3003. Combination coverage

Insurance Bulletin 372

Must be consistent with Standard Fire Policy.

 

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

 

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

 

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.

 

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…). 

 

PRIOR APPROVAL

Title 24-A - §2412. Filing, approval of forms

Statute contains a deemer provision.

 

PRIVACY NOTICE

Title 24-A - §2206. Notice of insurance information practices

See Title 24-A, Ch. 24 generally for insurance information and privacy protection.

 

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.

 

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).

 

SUBROGATION

Title 24-A - §2910-A. Subrogation; medical payments coverage

 

 

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

 

TERRORISM

Insurance Bulletin 348   

Permitted on this line of business but cannot exclude Standard Fire Policy

 

TERRORISM

Insurance - Bulletin 348

Permitted on this line of business but cannot exclude Standard Fire Policy perils Insurance - Bulletin 348

 

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

 

 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).

 

WARRANTIES

Title 24-A - §2411. Representations in applications

Statements on applications are deemed to be representations, not warranties.

 

RATE, RULE, RATING PLAN, CLASSIFICATION, AND TERRITORY FILING REQUIREMENTS

 

 

 

"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.

 

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.

 

CHARGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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.

 

COMPETITION

Title 24-A - §2306. Disapproval of filing

May support filing by citing specific competitor filing

 

CONSENT-TO-RATE

Title 24-A - §2308. Excess rates

Permitted if rating manual filing previously filed does not contemplate the specific risk being assumed.

 

CREDIBILITY

Title 24-A § 2303
Making of Rates

Title 24-A - §2304-A. Rate filings

Credibility standard must be supported.

 

CREDIBILITY AND OTHER FACTORS

Title 24-A, §2303: Making of rates

Rate or loss cost multiplier calculation should reflect credibility and other factors

 

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

 

 

DISCOUNTS

Title 24-A - §2304-A. Rate filings

Title 24-A - §2303. Making of rates

Credits must be supported.

 

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).

 

EXPENSES

Title 24-A - §2303. Making of rates

Rate or loss cost multiplier calculation should reflect expenses of insurer

 

EXPERIENCE

Title 24-A - §2303. Making of rates

Rate or loss cost multiplier calculation should reflect experience of insurer

 

EXPERIENCE RATING

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

GROUP POLICIES

Title 24-A §2951. Group property and casualty insurance

Not permitted.

 

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%.

 

JUDGMENT

Title 24-A - §2303. Making of rates

Rate or loss cost multiplier calculation reflect judgment of insurer

 

LARGE DEDUCTIBLE

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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.

 

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

 

MINIMUM PREMIUM RULES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

MULTI-TIER

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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

 

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.

 

PAYMENT PLANS

Title 24-A - §2304-A. Rate filings

Title 24-A - § 2403. “Premium” defined

Must be filed as part of rating plan

 

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.

 

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

 

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

 

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

 

RETROSPECTIVE RATING

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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

 

RISK CLASSIFICATION

Title 24-A - §2303. Making of rates

Risks may be grouped by classifications for the establishment of rates and minimum premiums

 

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

 

SMALL DEDUCTIBLE

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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

 

SURCHARGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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

 

Last Updated: April 29, 2013