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Credit Insurance

LINE OF BUSINESS: Credit LINE(S) OF INSURANCE CODES
    Creditor-Placed Home 28.2001
    Creditor-Placed Auto 28.2002
Code: 28.2000 Personal Property 28.2003
    Credit Involuntary Unemployment 28.2004
    Personal GAP Insurance 28.2005
    Other 28.2006
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 WORDING

 

Include proposed effective date on SERFF General Information.  Policies effective at 12:01 AM Standard Time.

 

FILING SUBMISSION

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

Title 24-A - §2304-A. Rate filings

Form filing requirements.

 

Rate/rule filing requirements.

 

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

Credit

Must have requisite certificate of authority to transact business before submitting rate/rule or form filing.

 

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

 

 

 

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 2 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

Must file applications only if to be made part of the policy
All statements are considered representations not warranties.  The Maine Fraud Warning must appear permanently affixed on all application (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

Title 24-A - §2308. Excess rates

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 § 2908 Cancellation and Nonrenewal

The insurance contract must contain statutory grounds for cancellation and nonrenewal, the number of days notice and the number of days mail time required to deem conclusive proof of receipt.

 

CONTENT OF POLICIES

Title 24-A - §2901. Contracts subject to general provisions

Title 24-A - Chapter 39, CASUALTY INSURANCE CONTRACTS

Title 24-A - Chapter 27, THE INSURANCE CONTRACT

Title 24-A - MAINE INSURANCE CODE

Contracts subject to provisions of Casualty Chapter 39 and general provisions of Chapter 27.

 

CREDIT SCORING NOTICE

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 related to benefits not associated with loss and reductions in premium association 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

See Chapter 37 for eligibility.

 

NOTICE OF CANCELLATION

Title 24-A § 2908 Cancellation and Nonrenewal

 

 

NOTICE OF NON-RENEWAL

Title 24-A § 2908 Cancellation and Nonrenewal

 

 

PAYMENT OF LOSS TIME PERIOD

Title 24-A - §2436. Interest on overdue payments

Payment within 30 days and interest on overdue payments of 1.5% per month.

 

PERMISSIBLE REASONS FOR CANCELLATION

Title 24-A § 2908 Cancellation and Nonrenewal

 

 

PERMISSIBLE REASONS FOR NON-RENEWAL

Title 24-A § 2908 Cancellation and Nonrenewal

 

 

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.

 

SUIT

Title 24-A - §2433. Jurisdiction of courts, limitation of actions

Insured must be given 2 years from date of loss to bring suit against insurer.

 

TERRORISM

Insurance - Bulletin 348

Not an eligible line.

 

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 in applications must be considered representations not warranties.

 

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

 

 

 

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.

 

CALCULATION OF UNEARNED/RETURN PREMIUM

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

CHARGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

COMPETITION

Title 24-A - §2306. Disapproval of filing

May support filing by citing specific competitors 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 standards must be supported.

 

CREDIBILITY

Title 24-A - §2303. Making of rates

Rate and loss costs multiplier calculation should reflect credibility of insurer.

 

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

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 and loss costs multiplier calculation should reflect expenses of insurer.

 

EXPERIENCE

Title 24-A - §2303. Making of rates

Rate and loss costs 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

See Chapter 37 for eligibility.

 

JUDGMENT

Title 24-A - §2303. Making of rates

Rate and loss costs multiplier calculation should 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

 

MINIMUM RETAINED PREMIUM

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

 

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 filings and file loss costs multiplier.

 

PROFIT LOADING

Title 24-A - §2303. Making of rates

Rate and loss costs multiplier calculation may reflect profit loading and must give consideration to investment income.

 

RATE RANGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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 filings and file loss costs multiplier.

 

RATING PLAN REQUIREMENTS

Title 24-A - §2304-A. Rate filings

Insurance - Bulletin 176

All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filings and file loss costs multiplier.

 

RETROSPECTIVE RATING

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

RETURN PREMIUM

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.

Manual rates, minimum premiums, class rates, rating schedules or rating plans, every other rating rule, and every modification to the foregoing should be filed and supported.

 

SCHEDULE RATING/IRPM

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan.  The maximum aggregate debit/credit permitted is 40%.

 

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 DEDUCTIVLE

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 filings and file loss costs multiplier.

 

SURCHARGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

 

Last Updated: April 29, 2013