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 WORDING |
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Include proposed effective date on SERFF General Information. Policies effective at 12:01 AM Standard Time. |
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FILING SUBMISSION |
Title 24-A - §2412.
Title 24-A - §2304-A. |
Form Filing Requirements.
Rate Filing Requirements. |
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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 |
Farmowners Multiple Peril |
Must have requisite certificate of authority to transact business before submitting rate/rule/form filing. |
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THIRD PARTY FILERS AUTHORITY |
Title 24-A - §2412.
Title 24-A - §2304-A. |
Must include authorization to communicate directly with third party filers. |
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FORMS--POLICY
PROVISIONS |
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ACCESS TO COURTS |
Title 24-A §2433
Jurisdiction of courts, limitation of actions. |
Maine Courts must have jurisdiction.
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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. |
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ACTUAL CASH VALUE |
Title 24-A § 3004-A Actual Cash Value |
ACV means the replacement cost of an insured item of property at the time of loss, less the value of physical depreciation as to the item damaged. "Physical depreciation" means a value as determined according to standard business practices. |
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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 |
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…). |
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APPRAISAL |
Title 24-A §3002
Standard fire policy required; exceptions |
Refer to Standard Fire Policy for proof of loss and appraisal provision. |
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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 non-renewal |
Maine amendatory endorsement must include statutory grounds for mid-term cancellation. |
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CONTENT OF POLICIES |
Title 24-A - §3001. Contracts subject to general provisions
Title 24-A §3002
Standard fire policy required; exceptions
Title 24-A - Chapter 27, THE INSURANCE CONTRACT
Title 24-A - Chapter 41, PROPERTY INSURANCE CONTRACTS |
Contracts subject to Chapter 27, Chapter 41 and to general provisions of Maine Insurance Code. |
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CREDIT SCORING NOTICE |
Title 24-A - §2169-B. Use of consumer reports in insurance underwriting
Insurance - Bulletin 329 |
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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. |
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EXCLUSIONS & LIMITATIONS |
Title 24-A §3002
Standard fire policy required; exceptions |
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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 |
A group policy for Farmowners is not eligible under the property and casualty group law. |
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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 §3002
Standard fire policy required; exceptions |
Mortgage clause must be consistent with Standard Fire Policy. |
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LOSS SETTLEMENTS |
Title 24-A §3002
Standard fire policy required; exceptions |
Must be consistent with Standard Fire Policy. |
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LOSS VALUATION |
Title 24-A - §3002. Standard fire policy required; exceptions
Title 24-A - §3004-A. Actual cash value |
Refer to Standard Fire Policy for proof of loss and appraisal provision.
Statutory definition of ACV. |
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MOLD |
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Permitted with a sub-limit. |
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MORTGAGEE/LIENHOLDER |
Title 24-A §3002
Standard fire policy required; exceptions |
Refer to Standard Fire Policy for proof of loss and appraisal provision. |
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NOTICE OF CONCELLATION |
Title 24-A §3007
Cancellation and non-renewal |
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 — refer to subsection 6 of statute. |
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NOTICE OF NON-RENEWAL |
Title 24-A §3007
Cancellation and non-renewal |
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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NOTICE REQUIREMENTS |
Title 24-A §3007
Cancellation and non-renewal |
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PAYMENT OF LOSS TIME PERIOD |
Title 24-A §2436. Interest on overdue payments
Title 24-A - §3002. Standard fire policy required; exceptions |
Payment within thirty days and interest on overdue payments of 1.5% per month.
Refer to Standard Fire Policy for proof of loss provision. |
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PERMISSIBLE REASONS FOR CANCELLATION |
Title 24-A §3007
Cancellation and non-renewal |
See statute for permissible grounds. |
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PERMISSIBLE REASONS FOR NON-RENEWAL |
Title 24-A §3007
Cancellation and non-renewal |
See statute for permissible grounds. |
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PRIOR APPROVAL |
Title 24-A § 2304-A. Rate Filings
Title 24-A - §2412. Filing, approval of forms |
Filings are to be made no less than 30 days in advance of their stated effective/delivery date. Filings made electronically shall be acted upon within 30 days unless the filer requests an extension. Filings not acted upon pursuant to these statutes may be deemed after 30 days. |
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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-A. Permitted activities
Insurance Bulletin 233 |
Refer to Statutes and Bulletin for specific information. |
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STANDARD FIRE POLICY |
Title 24-A §3002 Standard fire policy required; exceptions
Title 24-A §3003. Combination coverages |
Provisions of Standard Fire Policy may be incorporated in all property contracts or by endorsement using a Maine Standard Fire Policy form. |
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SUBROGATION |
Title 24-A §3002 Standard fire policy required; exceptions
Title 24-A § 2910-A Subrogation; medical payments coverage |
Permitted by Standard fire policy.
Policy may not provide for subrogation or priority over the insured of payment for any hospital, nursing, medical or surgical services or of any expenses paid or reimbursed under the medical payments coverage in the policy in the event the insured is entitled to receive payment or reimbursement from any other person as a result of legal action or claim, except as provided in this section.
The coverage may contain a provision that allows the payments if :
A. The provision requires the written approval of the insured;
B. The provision provides that the insurer’s subrogation right is subject to subtraction to account for the pro rata share of the insured's attorney's fees incurred in obtaining the recovery from another source; and
C. The provision is approved by the superintendent. |
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SUIT |
Title 24-A §3002 Standard fire policy required; exceptions
Title 24-A §2433
Jurisdiction of courts, limitation of actions. |
Permitted by Standard fire policy.
Insured must be given 2 years from date of loss to bring suit against insurer. |
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TERRORISM |
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 |
Insurers may not 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 in applications must be considered representations not warranties. |
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RATE, RULE, RATING PLAN, CLASSIFICATION, AND TERRITORY FILING REQUIREMENTS |
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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 cost multiplier. |
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CALCULATION OF UNEARNED/RETURN PREMIUM |
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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CHARGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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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 AND OTHER FACTORS |
Title 24-A - §2303. Making of rates
Title 24-A §2304-A Rate filings |
Credibility standards must be supported. |
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CREDIT SCORING AND REPORTS |
Title 24-A - §2169-B. Use of consumer reports in insurance underwriting
Insurance - Bulletin 329 |
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DISCOUNTS |
Title 24-A §2304-A Rate filings |
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 |
A group policy for Farmowners is not eligible under the property and casualty group law. |
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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 should reflect expenses 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 cost 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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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. |
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RATE RANGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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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.
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. |
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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
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 filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier. |
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