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Mortgage Guaranty

LINE OF BUSINESS: Mortgage Guaranty LINE(S) OF INSURANCE CODES
    Mortgage Guaranty 6.0000
    MG-Fixed Rate Mortgages 6.0001
Code: 6.0000 MG-Trust/Pools 6.0002
    MG - Variable Mortgages 6.0003
       
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

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 AND EXPLANATORY MEMORANDUM

 

 Cover letters may be attached to the Supporting Documentation Tab or the text may be 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.

 

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

 Mortgage Guaranty

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

 

THIRD PARTY FILERS AUTHORITY

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

Title 24-A §2304-A. Rate filings

Insurance - Bulletin 238

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

Grounds for disapproval

 

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.

 

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 are 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.

 

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

 

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.

 

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 thirty 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

 

 

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

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 two years to bring suit against insurer

 

VOIDANCE

Title 24-A §2411 Representations in applications

Do not allow insurers to void coverage for concealment, material 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

 

 

 

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.

 

CREDIBILITY

Title 24-A § 2303. Making of rates

Credibility standards must be supported

 

CREDIBILITY

Title 24-A §2303 Making of rates

Rate or loss cost multiplier calculation should reflect credibility

 

DISCOUNTS

Title 24-A §2304-A Rate filings

 

Credits must be filed and supported

 

EXPENSE MODIFICATION PLAN

Insurance Bulletin-233

Considered 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

 

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

 

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

Title 24-A § 2412-A Large Commercial Contracts

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.

 

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 file 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 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 premium, class rate, rating schedule or rating plan, 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

 

SUPPORTING DATA

Title 24-A - §2302-A Definitions

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.

 

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 and/or may adopt advisory organization reference filing and file loss costs multiplier.

 

 

 

Last Updated: April 30, 2013