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Commercial Property

LINE OF BUSINESS: Property LINE(S) OF INSURANCE CODES
    Commercial Property 1.0001
    Personal Property 1.0002
Code: 1.0000    
       
       
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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

 

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

Title 24-A - §3002. Standard fire policy required; exceptions

 Policies effective at 12:01 AM Standard Time

Include proposed effective date on SERFF General Information

 

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

Fire and Allied Lines

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

 

 FILING EXEMPTIONS

Title 24-A - §2412-A. Large commercial contracts

Large commercial risks exempt from filing — refer to statue for criteria and definition of large commercial risk

 

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

Rate Filing Requirements

Rate/Rule/Form filing Requirements

 

FORMS--POLICY
PROVISIONS

 

 

 

ACCESS TO COURTS

Title 24-A, §2433: Jurisdiction of courts, limitation of actions

Maine Courts must have jurisdiction

 

ACTION AGAINST COMPANY

Title 24-A - §2433. Jurisdiction of courts, limitation of actions

Insured must be given two years from date of loss to bring suit against insurer

 

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

Title 24-A - §2186. Insurance fraud prevention

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…). 

 

APPRAISAL

Title 24-A - §3002. Standard fire policy required; exceptions

Refer to Standard Fire Policy for appraisal provision

 

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 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 - §3007. Cancellation and nonrenewal

 

Statutory grounds are required to cancel mid-term and must be included in Maine amendatory endorsement ; statutory notice required for both cancellation & non-renewal;

Maine amendatory endorsement must include mailing time language.

 

CONTENT OF POLICIES

Title 24-A - MAINE INSURANCE CODE

Title 24-A - Chapter 27, THE INSURANCE CONTRACT

Title 24-A - §3001. CONTRACTS SUBJECT TO GENERAL PROVISIONS

Title 24-A - Chapter 41, PROPERTY INSURANCE CONTRACTS

Contracts subject to provisions of Property  Chapter 41 and general provisions of Chapter 27

 

CREDIT SCORING

Title 24-A - §2169-B. Use of consumer reports in insurance underwriting

Insurance – Bulletin 329

 

 

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

 

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

Property coverage is not eligible under the property and casualty law.

 

LOSS PAYEE

Insurance Bulletin 372

Title 24-A Ch. 41: Property Insurance Contracts - Subchapter 3: LIEN OF MORTGAGEES ON POLICIES

Mortgagee notification must be consistent with Standard Fire Policy

 

LOSS SETTLEMENTS

Title 24-A - §3004-A. Actual cash value

Title 24-A  §2436. Interest on overdue payments

Statutory definition of ACV

 

LOSS VALUATION

Title 24-A - §3002. Standard fire policy required; exceptions

Title 24-A, §3004-A: Actual cash value

See appraisal clause of Standard Fire Policy

 

Statutory definition of ACV applies

 

MINIMUM STANDARDS FOR CONTENT
(POLICIES AND STANDARD FORMS)

Title 24-A §2414. Standard provisions, in general

Title 24-A - §3001. Contracts subject to general provisions

 

Title 24-A - §3004-A. Actual cash value

Title 24-A - Chapter 27, THE INSURANCE CONTRACT

 

Title 24-A – Chapter 41,  Property Insurance Contracts

Title 24-A - MAINE INSURANCE CODE

Statutory definition of ACV applies

 

Property contracts are subject to provisions of  Chapter 41and other applicable provisions of Title 24-A (The Maine Insurance Code)

 

MORTGAGEE/LIENHOLDER

Title 24-A - §3002. Standard fire policy required; exceptions

Insurance Bulletin 372

Must be consistent with the Maine Standard Fire Policy

 

NOTICE OF CANCELLATION

Title 24-A §3007. Property insurance contracts.

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

 

NOTICE OF NON-RENEWAL

Title 24-A §3007. Property insurance contracts.

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

 

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.

 

POST JUDGMENT INTEREST

Bulletin 353 : Bureau of Insurance

Title 14 § 1602-C
Interest after judgment

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…). 

 

PRIOR APPROVAL

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

Statute contains a deemer provision

 

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

Title 24-A - §2163. Receipt of rebate, illegal inducement prohibited

Insurance Bulletin 233

Sales inducement rebates prohibited unless contained in policy

 

STANDARD FIRE POLICY

Title 24-A - §3002. Standard fire policy required; exceptions

Property coverage must include Maine Standard Fire Policy
Provisions.

 

SUBROGATION

Title 24-A, §3002: Standard fire policy required; exceptions

See Property Policy Coverage Form.

 

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 the insurer

 

TERRORISM

Insurance Bulletin 348

Permitted on this line of business but cannot exclude Standard Fire Policy

 

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).

 

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

 

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

 

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 & 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

 

 

 

DISCOUNTS

Title 24-A, §2304-A: Rate filings

Credits must be filed

 

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).

 

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.

 

EXPERIENCE RATING

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

GROUP POLICIES

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

Property coverage is not eligible under the property and casualty law.

 

IRPM/ 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%.

 

JUDGMENT

Title 24-A, §2303: Making of rates

Rate and loss costs multiplier calculation may reflect judgment of insurer.

 

LARGE DEDUCTIBLE

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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 – Large Commercial Risks

Title 24-A, §2412-A: Large commercial contracts

Insurers exempt from filing rate/rule/forms to be issued specifically to large commercial risks; refer to statute for qualifying criteria for risks in this category

 

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 filing loss costs multiplier.

 

RATING PLAN REQUIREMENTS

Title 24-A - §2304-A. Rate filings

Insurance – Bulletin 176

All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filings and filing 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 premiums, class rates, rating schedules or rating plans, ever other rating rule, and every modification to the foregoing should be filed and supported

 

RISK CLASSIFICATION

Title 24-A, §2303: Making of rates

Permitted

 

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

 

SMALL DEDUCTIBLE

Title 24-A - §2304-A. Rate filings

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 aspects of pricing must be filed and supported and/or may adopt advisory organization reference filings and filing 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 filings and filing loss costs multiplier.

 

 

Last Updated: April 29, 2013