February 2000
Public Law 1999, Chapter 328 which became effective September 18, 1999, permits the issuance of certain property and casualty insurance policies without rate and policy form filing requirements to qualifying commercial policyholders. The law contains aggregate premium and other qualifying criteria to be considered an eligible large commercial policyholder.
An insurer that issues policies pursuant to the "Large Commercial Contracts" section, Title 24-A, section 2412-A is required to report annually to the superintendent, beginning on February 1, 2001 and continuing until February 1, 2005. The reports must include information relating to the number of policies issued each year sorted by line of insurance, the number of policies renewed each year sorted by line of insurance, and any other pertinent information required by the superintendent.
In order to monitor the volume of insurance and the loss experience of those policies subject to this statutory provision, the following information shall be submitted annually:
- Number of policies issued by line
- Number of policies renewed by line
- Total direct premium written by line
- Total direct premium earned by line
- Incurred direct losses and allocated loss adjustment expenses by line
- Totals for all lines combined
Lines of insurance are those lines or sublines contained in the Exhibit of Premium and Losses contained in the Annual Statement Blank prescribed by the Superintendent and the NAIC.
Premium and Losses should be reported on a calendar year basis and each report should contain the premium and loss estimates for the calendar year ending the preceding December 31. The first report will be required for year 2000 and is due February 1, 2001. The report will be on the attached form prepared by the Superintendent pursuant to 24-A M.R.S.A. § 2412-A (6).
Reports should be sent to the Property Casualty Actuary, Maine Bureau of Insurance , 34 State House Station, Augusta, ME 04333; or, reports may be submitted electronically at our website: maineinsurancereg.org (Look for the Forms link.)
Note: At the time of this bulletin printing, an amendment to 24-A M.R.S.A. § 2412-A, LD 2264 (also amended), was proposed to clarify that: 1) there is no exception for surety insurance, and 2) there is no end date for the amount of $50,000 as a threshold, see 24-A M.R.S.A. § 2412-A (1)(B)(2)(b)(iv).
Alessandro Iuppa
Insurance Superintendent
NOTE: This bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties or privileges nor is it intended to provide legal advice. Readers are encouraged to consult applicable statutes and regulations and to contact the Bureau of Insurance if additional information is needed.
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