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 SERFF General Information tab. |
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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 |
Inland Marine |
Must have requisite certificate of authority to transact business before submitting rate/rule or form filing |
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NO FILE OR FILING EXEMPTIONS |
Title 24-A - §2304-A. Rate filings
Title 24-A - §2412. Filing, approval of forms
Title 24-A - §2412-A. Large commercial contracts |
Specially rated inland marine risks and inland marine risks, which by general custom of the business are not written according to manual rates or rating plans are exempt from filing; policy forms and rates/rules pertaining to large commercial risks exempt from filing — see statue for criteria and definition of large commercial risk |
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THIRD PARTY FILERS AUTHORITY |
Title 24-A - §2304-A. Rate filings
Title 24-A - §2412. Filing, approval of forms |
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 have jurisdiction. |
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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. |
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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 |
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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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 § 2908 Cancellation and nonrenewal
Title 24-A - §3007. Cancellation and nonrenewal |
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. |
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CONTENT OF POLICIES |
Title 24-A - §3002. Standard fire policy required; exceptions
Title 24-A - MAINE INSURANCE CODE
Title 24-A - Chapter 27, THE INSURANCE CONTRACT
Title 24-A - Chapter 39, CASUALTY INSURANCE CONTRACTS |
Maine Standard Fire Policy applies.
Maine amendatory endorsement must contain cancellation/nonrenewal wording consistent with statute. |
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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 related to benefits not associated with loss and reductions in premium association 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 |
Inland Marine NOT among permitted products. |
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NOTICE OF CANCELLATION |
Title 24-A § 2908 Cancellation and nonrenewal
Title 24-A - §3007. Cancellation and nonrenewal |
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 Cancellation and nonrenewal
Title 24-A - §3007. Cancellation and nonrenewal |
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 PERIOD |
Title 24-A - §2436. Interest on overdue payments |
Payment within 30 days and interest on overdue payments of 1.5% per month. |
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PERMISSIBLE REASONS FOR CANCELLATION |
Title 24-A § 2908 Cancellation and nonrenewal
Title 24-A - §3007. Cancellation and nonrenewal |
See statute for permissible grounds. |
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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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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. |
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TERRORISM |
Insurance - Bulletin 348
Title 24-A - §3002. Standard fire policy required; exceptions |
Cannot exclude Standard Fire Policy perils and does not apply to personal lines. |
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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 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 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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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 standards 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 trend factors of insurer. |
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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 - §2303. Making of rates
Title 24-A - §2304-A. Rate filings |
Surcharges and credits must be filed and 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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INDIVIDUAL RISK RATING |
Title 24-A - §2303. Making of rates
Title 24-A - §2304-A. Rate filings |
Specially rated inland marine risks or risks which by general custom are not written according to manual rates or rating plans. |
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JUDGMENT |
Title 24-A - §2303. Making of rates |
Rate or loss cost multiplier calculation should 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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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 fling 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 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 filing loss costs multiplier. |
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RATING PLAN REQUIREMENTS |
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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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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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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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 filings 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
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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WRAP-UP RATING |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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