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Homeowners

LINE OF BUSINESS: Homeowners LINE(S) OF INSURANCE CODES
    Condos 4.0001
    Mobile Homes 4.0002
Code: 4.0000 Owner Occupied 4.0003
    Tenants 4.0004
    Other 4.0005
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   Enter New Business and Renewal effective dates under the General Information tab in SERFF  
FILING SUBMISSION

Title 24-A - §2412 Filings approval of forms

Title 24-A - §2304-A.

Form Filing Requirements

Rate/Rule Filing Requirements
 
LIMITATIONS/RESTRICTIONS ON TRANSACTING BUSINESS

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

Must have certificate of authority to transact business.

 
LINE OF AUTHORITY Homeowners Must have requisite certificate of authority to transact business before submitting rate/rule/form filing.  
THIRD PARTY FILERS AUTHORITY

Title 24-A - §2412 Filings, approval of forms

Title 24-A - §2304-A. Rate Filings

Form Filing Requirements. Must include authorization to communicate directly with third party filers because filings are confidential until effective.

 
FORMS--POLICY
PROVISIONS
     
ACCESS TO COURTS Title 24-A - §2433 Jurisdiction of courts, limitations of actions Maine Courts have jurisdiction.  
ACTION AGAINST COMPANY

Title 24-A - §3002. Standard fire policy required; exceptions

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

Standard fire policy.

 

Foreign insurers.
 
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.  
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

All statements are considered representations not warranties.

Must file applications only if to be made part of the policy.
 
APPRAISALS Title 24-A - §3002. Standard fire policy required; exceptions See standard fire policy requirements with respect to appraisals.  
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 24-A § 2308.2 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 - §3048-§3056. Scope of subchapter

Insurance - Bulletin 201
Statutory grounds required to cancel mid-term and must be included in Maine amendatory endorsement; statutory notice required for both cancellation & non–renewal; Maine amendatory endorsement must include mailing time language.  
CONTENT OF POLICIES

Title 24-A - §3002. Standard fire policy required; exceptions

Title 24-A - Chapter 41, PROPERTY INSURANCE CONTRACTS

Maine Standard Fire Policy applies.

 

Maine amendatory endorsement must contain cancellation/nonrenewal wording consistent with Maine Property Insurance Cancellation Control Act (24-A M.R.S.A. § 3048 et seq.)
 
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.  
DEFENSE COSTS Title 24-A - §2413. Grounds for disapproval Do not permit defense costs within limit of liability.  
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.  
DUTY TO DEFEND Title 24-A - §2413. Grounds for disapproval

May not be excluded—deceptively affects coverage.  The Maine Supreme Judicial Court uses a comparison test to assess an insurer's duty to defend. See, Commercial Union Ins. v. Royal Ins., 658 A.2d 1081 (Me. 1995) (The insured is entitled to a defense if the complaint alleges any legal or factual basis that could obligate an insurer to indemnify.)

 
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 and claim forms.  
GROUP POLICIES Title 24-A - §2951. Group property and casualty insurance Group policies for Homeowners NOT among the products permitted.  
INSURANCE TO VALUE Title 24-A - §3002. Standard fire policy required; exceptions    
LEAD

Title 24-A - §2413. Grounds for disapproval

Title 22 - Chapter 252, LEAD POISONING CONTROL ACT

Prohibited — deceptively affects coverage purported to be assumed.

Permit exclusion beginning ≥ 31 days after State of Maine Department of Health and Human Services or a DHHS licensed lead inspector has given insured notice of environmental lead hazard & insured failed to remove the lead hazard.
 
LIBERALIZATION CLAUSE   Generally a standard policy condition in most policies, but not a requirement.  
LOSS VALUATION

Title 24-A - §3002. Standard fire policy required; exceptions

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

See appraisal clause in Standard Fire Policy.

 

Statutory definition of ACV
 
Minimum Retained Premium   Considered part of the rating plan.  
MINIMUM STANDARDS FOR CONTENT (POLICIES AND STANDARD FORMS)

Title 24-A - §3002. Standard fire policy required; exceptions

Title 24-A §2414 Standard provisions, in general

Maine Standard Fire Policy.

 

Standard provisions.
 
MOLD   Permitted with a sub limit  
MORTGAGEE/LIENHOLDER Title 24-A - §3002. Standard fire policy required; exceptions Maine Standard Fire Policy. Must provide notice to any mortgagee/lien holder mentioned in the loss payable clause.  
NOTICE OF CANCELLATION

Title 24-A - §3049. Notice of cancellation; reasons

Title 24-A - §3050. Delivery of notice
Minimum 20 days advance notice required for cancellation except 10 days for nonpayment & must allow for 5 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 30 days of receipt of notice.  
NOTICE OF NON-RENEWAL Title 24-A §3051 Notice of intent Minimum 30 days advance notice required for non renewal & 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 30 days of receipt of notice  
PARTICIPATING POLICIES Title 24-A §3417. Participating policies Participating and non-participating policies permitted.  Applies to domestic companies.  
PAYMENT OF LOSS TIME PERIOD Title 24-A §3417. Participating policies Payment within sixty days and interest on overdue payments of 1.5% per month.  
PERMISSIBLE REASONS FOR CANCELLATION Rule Chapter 355 § 7 (C) (2)

See statute for permissible grounds.

The permissible ground must be contained within the policy in order to be applicable.

 
PERMISSIBLE REASONS FOR NON-RENEWAL Title 24-A §3051. Notice of intent See statute for permissible grounds.  
POST JUDGMENT INTEREST Bulletin 353 Post judgment interest must be paid in accordance with Maine law.  
PRIOR APPROVAL

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

 

Title 24-A § 2304-A. Rate Filings

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.
 
PRIVACY NOTICE Title 24-A - §2206. Notice of insurance information practices See Title 24-A, Ch. 24 generally for insurance information and privacy protection.  
PUNITIVE DAMAGES Title 24-A - §2413. Grounds for disapproval Punitive damages may be excluded.  Maine law prohibits indemnification for an insured’s own criminal acts.  See, Landry v. Leonard, 1998 ME 241.   
READABILITY Title 24-A - §2441. Minimum policy language simplification standards Minimum Flesch score of 50; 10-point. Type (16 or fewer characters per inch), one-point leaded.  
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

 
STANDARD FIRE POLICY Title 24-A - §3002. Standard fire policy required; exceptions Homeowners’ policies are subject to standard fire policy.  
SUBROGATION

Title 24-A - §3002. Standard fire policy required; exceptions

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

See 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.

 
SUIT Title 24-A - §3002. Standard fire policy required; exceptions Insured must be given 2 years from date of loss to bring suit against insurer.  
TERRORISM Insurance - Bulletin 348 Not permitted on this line.  
VICARIOUS LIABILITY Title 14 - §304. Liability of parents or legal guardians for damage by children Parent or Legal Guardians are 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.  
WATER/SEWER BACK-UP   Optional endorsement to the homeowners policy  
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

 
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.  
CHARGES Title 24-A § 2304-A. Rate Filings Must be filed as part of rating plan  
COMPETITION Title 24-A §2306. General provisions May support filing by citing specific competitors filing.  
CONSENT-TO-RATE Title 24-A §2308. Excess rates Consent to rate and form requirements for individual risk filings.  
CREDIBILITY Title 24-A §2303. Making of rates Rate and loss costs multiplier calculation should reflect credibility.  
CREDIBILITY AND OTHER FACTORS

Title 24-A §2303. Making of rates

Title 24-A § 2304-A. Rate Filings
Credibility standards must be supported.  
CREDIT SCORING AND REPORTS

Title 24-A §2169-B. Use of consumer reports in insurance underwriting

Insurance - Bulletin 329
Permitted - refer to statute and bulletin for specific information.  
DEDUCTIBLE Title 24-A § 2304-A. Rate Filings    
DISCOUNTS Title 24-A § 2304-A. Rate Filings Credits must be filed.  
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 expenses of insurer.  
GROUP POLICIES Title 24-A - §2951. Group property and casualty insurance Not permitted — Homeowners not among permitted products  
JUDGMENT Title 24-A §2303. Making of rates Rate and loss costs multiplier calculation may reflect judgment of the insurer.  
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 RETAINED PREMIUM

Title 24-A § 2304-A. Rate Filings

Must be filed as part of rating plan  
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 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  
PREMIUM REFUND OR RETENTION Title 24-A - §3002. Standard fire policy required; exceptions 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 filing loss costs multiplier.  
PROFIT LOADING Title 24-A §2303. Making of rates Rate and 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 filing 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 filing loss costs multiplier.  
RETURN ON EQUITY/INVESTMENT INCOME Title 24-A §2303. Making of rates Profit must give consideration to investment income.  
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  
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 filings must include or reference all supporting information as defined in statute.  
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 filed and supported by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.  

Last Updated: April 30, 2013