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 AND EXPLANATORY MEMORANDUM |
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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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Enter New Business and Renewal effective dates under the General Information tab in SERFF |
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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 |
Auto Liability
Auto Physical Damage |
Must have requisite certificate of authority to transact business before submitting rate/rule or form filing |
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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 |
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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 - §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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AGGREGATE LIMITS |
Title 29-A - §1605. Proof of financial responsibility
Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer
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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. |
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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 |
All statements are considered representations not warranties.
Must file applications only if to be made part of the policy. |
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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
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 - Chapter 39, CASUALTY INSURANCE CONTRACTS |
Amendatory endorsement must comply with Automobile Cancellation Control Act applies refer to Chapter 39 § 2912 et seq. |
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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) |
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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 |
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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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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." |
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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.) |
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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 |
Personal Auto NOT among lines permitted |
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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 |
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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 |
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LOSS PAYEE |
Title 24-A - §2914. Notice of cancellation -- reasons
Bulletin 372 |
Must provide notice to any person mentioned in loss payable clause |
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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. |
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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) |
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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 |
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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 |
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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 - §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. |
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PERMISSIBLE REASONS FOR NON-RENEWAL |
Title 24-A - §2916-A. Nonrenewal -- reasons |
See statute for permissible grounds. |
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POLLUTION LIABILITY |
Title 24-A - §2413. Grounds for disapproval |
Prohibited — deceptively affects coverage purported to be assumed |
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POST-JUDGMENT INTEREST |
Bulletin 353 |
Post-judgment interest must be paid in accordance with Maine law. |
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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. |
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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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PUNITIVE DAMAGES |
Title 24-A §2413 |
We do not allow in the Personal Auto Policy |
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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 |
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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. |
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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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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 |
Not permitted on this line |
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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) |
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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 |
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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).
Maine law allows you to cancel and or deny a claim for fraud or material misrepresentation. See 24-A §§ 2411 & 2914. |
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WARRANTIES |
Title 24-A - §2411. Representations in applications |
Statements on applications are deemed to be 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 competitors 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 and loss costs multiplier calculation should reflect credibility |
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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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DEDUCTIBLE |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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DISCOUNTS |
Title 24-A - §2304-A. Rate filings |
Credits must be filed |
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EXPENSES |
Title 24-A - §2303. Making of rates |
Rate and loss costs multiplier calculation should reflect expenses of insurer |
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EXPERIENCE |
Title 24-A - §2303. Making of rates |
Rate and loss costs multiplier calculation should reflect experience of insurer |
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GROUP POLICIES |
Title 24-A - §2951. Group property and casualty insurance |
Personal Auto NOT among permitted products |
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JUDGMENT |
Title 24-A - §2303. Making of rates |
Rate and loss costs multiplier calculation should reflect judgment of insurer |
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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 filings and file loss costs multiplier |
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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 |
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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 filings 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 filings and file loss costs multiplier |
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RETURN ON EQUITY/ INVESTMENT INCOME |
Title 24-A - §2303. Making of rates |
Profit must give consideration to investment income |
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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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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 |
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SURCHARGES |
Title 24-A - §2304-A. Rate filings |
Must be filed as part of rating plan |
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SYMBOLS |
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 |
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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