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Inland Marine

LINE OF BUSINESS: Inland Marine LINE(S) OF INSURANCE CODES
    Animal Mortality 9.0001
    Difference in Conditions (DIC) 9.0002
Code: 9.0000 EDP Policies 9.0003
    Pet Insurance 9.0004
    Other Commercial Inland Marine 9.0005
    Other Personal Inland Marine 9.0006
    Communication Equipment (Cellular Telephones) 9.0007
    Event Cancellation 9.0008
    Travel Coverage 9.0009
    Boatowners/Personal Watercraft 9.0010
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 SERFF General Information tab.

 

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

Inland Marine

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

 

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

 

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

 

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 - §3002. Standard fire policy required; exceptions

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

Standard fire policy.

 

Foreign insurers.

 

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

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

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

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.

 

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.

 

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 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

Inland Marine NOT among permitted products.

 

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.

 

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.

 

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

Title 24-A - §3007. Cancellation and nonrenewal

See statute for permissible grounds.

 

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

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

Cannot exclude Standard Fire Policy perils and does not apply to personal lines.

 

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 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.

 

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 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 standards must be supported.

 

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.

 

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 - §2303. Making of rates

Title 24-A - §2304-A. Rate filings

Surcharges and credits must be filed and 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

 

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.

 

JUDGMENT

Title 24-A - §2303. Making of rates

Rate or loss cost 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

 

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 fling 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 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 filing and filing loss costs multiplier.

 

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.

 

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.

 

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

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 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

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

 

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.

 

WRAP-UP RATING

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

 

Last Updated: April 30, 2013