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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FILING SUBMISSION |
Title 24-A § 2412 Filings, approval of forms
Title 24-A § 2304-A Rate filings |
Form filing requirements.
Rate filing requirements. |
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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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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 |
Other Liability
Products Liability |
Must have certificate of authority to transact business before submitting rate/rule/form filings. |
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NO FILE OR FILING EXEMPTIONS |
Title 24-A - §2412-A. Large commercial contracts |
Policy forms and rates/rules pertaining to large commercial risks exempt from filing — see statute for criteria and definition of large commercial risk. |
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SIDE BY SIDE COMPARISON |
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Please provide a marked-up copy of the existing rate/rule page(s) or forms being revised highlighting all changes by underlining additions and striking through deletions. |
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THIRD PARTY FILERS AUTHORITY |
Title 24-A § 2412 Filings, approval of forms
Title 24-A § 2304-A Rate filings |
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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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 Filings, approval of forms |
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 Filings, approval of forms
Title 24-A §2308 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). |
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CANCELLATION & NON-RENEWAL |
Title 24-A - §2908. Cancellation and nonrenewal |
Maine amendatory endorsement must include statutory grounds for mid-term cancellation — refer to subsection 2 of statute; a post-office certificate of mailing to the named insured at his last known address is conclusive proof of receipt of notice on the 3rd calendar day after mailing. |
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CONTENT OF POLICIES |
Title 24-A - §2901. Contracts subject to general provisions
Title 24-A - Chapter 27, THE INSURANCE CONTRACT
Title 24-A – Chapter 39, CASUALTY INSURANCE CONTRACTS
Title 24-A - MAINE INSURANCE CODE |
Casualty contracts are subject to provisions of Chapters 27 and 39 and to other applicable general provisions of Title 24-A (The 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 relating to benefits not associated with loss and reductions in premium associated 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 |
Group policies for liability ONLY permitted for risk purchasing groups in compliance with chapter 72-A. |
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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 Maine will permit a lead exclusion which begins ≥ 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. |
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MEDICAL PAYMENTS SUBROGATION |
Title 24-A § 2910-A Subrogation; medical payments coverage |
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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NOTICE OF CANCELLATION |
Title 24-A § 2908. Cancellation and nonrenewal
Insurance - Bulletin 201 |
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
Insurance - Bulletin 201 |
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 § 2908. Cancellation and nonrenewal |
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PeriodPAYMENT OF LOSS TIME |
Title 24-A §2436. Interest on overdue payments |
Payment within thirty 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 |
See statute for permissible grounds. |
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PERMISSIBLE REASONS FOR NON-RENEWAL |
Title 24-A § 2908. Cancellation and nonrenewal |
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POLLUTION EXCLUSION |
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Maine permits the use of pollution exclusions. |
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POST-JUDGMENT INTERES |
Title14 §1602-C. Interest after judgment
Insurance – Bulletin 353 |
Maine statutory law provides for the payment of post-judgment interest and case law has held that an insurer must pay post-judgment interest as a supplemental payment without regard to the policy terms (i.e. policy limit, sub-limits, exclusions, deductibles, retentions, etc…). |
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PRIOR APPROVAL |
Title 24-A § 2304-A Rate filings
Title 24-A § 2412 Filings, 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. Receipt of rebate, illegal inducement prohibited
Insurance Bulletin 233 |
Sales inducements rebates prohibited unless contained in policy. |
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SERVICE CONTRACTS--VEHICLE & OTHER THAN VEHICLE |
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Maine is a dealer obligor state. |
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SUIT |
Title 24-A - §2433. Jurisdiction of courts, limitation of actions |
Maine courts must have jurisdiction.
Insured must be given two years to bring suit against insurer. |
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VICARIOUS LIABILITY |
Title 14 - §304. Liability of parents or legal guardians for damage by children |
Parent or legal guardian 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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"A" RATED RISKS |
Title 24-A - §2304-A. Rate filings |
“a” rates and ranges must be filed along with any rates designated as “refer to company” or similar phrasing. |
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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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CALCULATIONOF 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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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 FACTORS TRENDING |
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 |
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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 |
Considered part of rating plan. |
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GROUP POLICIES |
Title 24-A - §2951. Group property and casualty insurance |
Group policies for liability ONLY permitted for risk purchasing groups in compliance with chapter 72-A. |
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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 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 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 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 DOCUMENT--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. |
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RISK CLASSIFICATION |
Title 24-A - §2303. Making of rates |
Risks may be grouped by classifications for the establishment of rates and minimum premiums. |
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SCHEDULE RATING (aka underwriting judgment) |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan and a maximum aggregate credit/debit 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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SURCHARGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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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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