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Personal Auto

LINE OF BUSINESS:

Auto Liability

LINE(S) OF INSURANCE

CODES

 

Auto Physical Damage

Personal PP

19.1001

 

 

Auto No-fault (PIP)

19.0001

Code:

19.0000

Motorcycle

19.0002

 

 

Recreational Vehicle (RV)

19.0003

 

 

Other

19.0004

 

 

 

 

IF CHECKLIST IS NOT APPLICABLE, PLEASE EXPLAIN:

 

 

 

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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 AND EXPLANATORY MEMORANDUM

 

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

 

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

Auto Liability
Auto Physical Damage

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

 

THIRD PARTY FILERS AUTHORITY

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

Title 24-A - §2304-A. Rate filings

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

 

AGGREGATE LIMITS

Title 29-A - §1605. Proof of financial responsibility

 

Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer

 

Minimum bodily injury, property damage, medical payments and uninsured/underinsured motorists for private passenger auto — refer to Motor Vehicle Code for minimum limits for school buses, etc.

 

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.

 

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

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).

 

CANCELLATION & NON-RENEWAL

Title 24-A - Chapter 39, CASUALTY INSURANCE CONTRACTS

Amendatory endorsement must comply with Automobile Cancellation Control Act applies refer to Chapter 39 § 2912 et  seq.

 

CONTENT OF POLICIES

Title 24-A - §2901. Contracts subject to general provisions

Title 29-A - §1606. Filing

Title 24-A - Chapter 39, CASUALTY INSURANCE CONTRACTS

Title 24-A - Chapter 27, THE INSURANCE CONTRACT

Title 24-A - MAINE INSURANCE CODE

Casualty contracts are subject to provisions of Chapter 30 as well as Chapter 27 & other applicable provisions of Title 24-A (the Maine Insurance Code)

 

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

 

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

 

DRIVER EXCLUSIONS & LIMITATIONS

Title 24-A - §2916-B. Exclusion of covered persons under personal automobile policy

A named driver exclusion is permitted in order to avoid cancellation or nonrenewal of an automobile insurance policy, and to allow the insurer to provide or to continue to provide coverage without an unreasonable risk.  An insurer and the named insured may agree by an endorsement to the policy that is signed by the affected parties.  Every endorsement shall contain the following wording in conspicuous print:

"NOTICE TO POLICYHOLDER IF THE PERSON EXCLUDED FROM COVERAGE BY THIS ENDORSEMENT IS UNDER THE AGE OF 18 YEARS, YOU CAN BE HELD LIABLE UNDER STATE LAW FOR HIS OR HER NEGLIGENCE WHEN HE OR SHE OPERATES YOUR VEHICLE WITH YOUR PERMISSION. YOUR POLICY DOES NOT INSURE YOU AGAINST THIS LIABILITY."

 

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 (i.e. new business, renewal, supplemental, etc…) and claim forms.

 

GROUP POLICIES

Title 24-A - §2951. Group property and casualty insurance

Personal Auto NOT among lines permitted

 

GUEST PASSENGER LIABILITY

Title 24-A - §2902-B. Motorcycle passenger exclusion

Motorcycle passenger exclusion not permitted unless insurer notifies Bureau of Insurance and each licensed producer and separate exclusionary endorsement filed and approved

 

LIMITS

Title 29-A - §1605. Proof of financial responsibility

Title 29-A - §1605-A. Medical payments

Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer

Minimum limits found in applicable sections of Motor Vehicle Code;  UM limits must be same as BI Liability unless expressly request lower limits, but must be no less than minimum limits required for BI in Title 29-A

 

LOSS PAYEE

Title 24-A - §2914. Notice of cancellation -- reasons

Bulletin 372

Must provide notice to any person mentioned in loss payable clause

 

MEDICAL PAYMENTS

Title 29-A - §1605-A. Medical payments

Minimum limit required by Motor Vehicle Code effective 1-1-2008 is $2,000 per person.

 

MINIMUM STANDARDS FOR CONTENT (POLICIES AND STANDARD FORMS)

Title 29-A - §1605. Proof of financial responsibility

Title 29-A - §1605-A. Medical payments

Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer

Must provide bodily injury liability, property damage liability, medical payments and uninsured/underinsured motorist (including injury caused by hit-and-run driver)

 

NOTICE OF CANCELLATION

Title 24-A - §2914. Notice of cancellation -- reasons

Title 24-A - §2915. Delivery of notice

Insurance - Bulletin 201

Cancellation must be based on statutory grounds; minimum 20 days (or 10 days if nonpayment of premium) advance notice; proof of mailing not proof of receipt until 5th calendar day after mailing

 

NOTICE OF NON-RENEWAL

Title 24-A - §2916-A. Nonrenewal -- reasons

Title 24-A - §2917. Notice of intent

Insurance - Bulletin 201

Nonrenewal must be based on statutory grounds; minimum 30 days advance notice; proof of mailing not proof of receipt until 3rd 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 - §2914. Notice of cancellation -- reasons

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 - §2916-A. Nonrenewal -- reasons

See statute for permissible grounds.

 

POLLUTION LIABILITY

Title 24-A - §2413. Grounds for disapproval

Prohibited — deceptively affects coverage purported to be assumed

 

POST-JUDGMENT INTEREST

Bulletin 353

Post-judgment interest must be paid in accordance with Maine law.

 

PRIOR APPROVAL

Title 24-A – 2304-A, Rate filings

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

Filings are to be made no less than 30 days in advance of their stated effective/delivery date.  The Superintendent must act upon a filing within 30 days unless the filer requests an extension.  Filings not acted upon pursuant to these statutes 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

We do not allow in the Personal Auto Policy

 

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

Bulletin 233

Refer to Statutes and Bulletin for specific information.

 

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.

 

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

Not permitted on this line

 

UNINSURED/UNDERINSURED MOTORISTS

Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer

Title 29-A - §1605. Proof of financial responsibility

Mandatory bodily injury coverage in amounts equal to BI liability limits unless expressly reject higher UM limits in writing, but at a minimum most be no lower than minimum financial responsibility limit in Motor Vehicle Code (Title 29-A)

 

VICARIOUS LIABILITY

Title 14 - §304. Liability of parents or legal guardians for damage by children

Parent or Legal Guardian 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).

Maine law allows you to cancel and or deny a claim for fraud or material misrepresentation. See 24-A §§ 2411 & 2914.

 

WARRANTIES

Title 24-A - §2411. Representations in applications

Statements on applications are deemed to be 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 competitors 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 and loss costs multiplier calculation should reflect credibility

 

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

 

DEDUCTIBLE

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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 experience of insurer

 

GROUP POLICIES

Title 24-A - §2951. Group property and casualty insurance

Personal Auto NOT among permitted products

 

JUDGMENT

Title 24-A - §2303. Making of rates

Rate and loss costs multiplier calculation should reflect judgment of 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 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 filings and file loss costs multiplier

 

PROFIT LOADING

Title 24-A - §2303. Making of rates

Rate and loss costs 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 filings 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 filings and file 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

 

SYMBOLS

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 filings and file loss costs multiplier

 

 

 

Last Updated: April 30, 2013