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Farmowners

LINE OF BUSINESS: Farmowners LINE(S) OF INSURANCE CODES
    FARMOWNERS 3.0000
       
Code: 3.0000    
       
       
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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 WORDING

 

Include proposed effective date on SERFF General Information.  Policies effective at 12:01 AM Standard Time.

 

FILING SUBMISSION

Title 24-A - §2412.

Title 24-A - §2304-A.

Form Filing Requirements.

Rate Filing Requirements.

 

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

Farmowners Multiple Peril

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

 

THIRD PARTY FILERS AUTHORITY

Title 24-A - §2412.

Title 24-A - §2304-A.

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 must 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. 

 

ACTUAL CASH VALUE

Title 24-A § 3004-A Actual Cash Value

ACV means the replacement cost of an insured item of property at the time of loss, less the value of physical depreciation as to the item damaged. "Physical depreciation" means a value as determined according to standard business practices.

 

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

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 proof of loss and 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 non-renewal

Maine amendatory endorsement must include statutory grounds for mid-term cancellation.

 

CONTENT OF POLICIES

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

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

Title 24-A - Chapter 27, THE INSURANCE CONTRACT

Title 24-A - Chapter 41, PROPERTY INSURANCE CONTRACTS

Contracts subject to Chapter 27, Chapter 41 and to general provisions of Maine Insurance Code.

 

CREDIT SCORING NOTICE

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 related to benefits not associated with loss and reductions in premium association with savings and expenses.

 

EXCLUSIONS & LIMITATIONS

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

 

 

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

A group policy for Farmowners is not eligible under the property and casualty group law.

 

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 the exclusion may apply only to bodily injury and not be effective until 31 days or more (an extension) after the State of Maine Department of Health Services or a department-licensed lead inspector has given notice of the existence of a lead hazard.

 

LOSS PAYEE

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

Mortgage clause must be consistent with Standard Fire Policy.

 

LOSS SETTLEMENTS

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

Must be consistent with Standard Fire Policy.

 

LOSS VALUATION

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

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

Refer to Standard Fire Policy for proof of loss and appraisal provision.

 

Statutory definition of ACV.

 

MOLD

 

Permitted with a sub-limit.

 

MORTGAGEE/LIENHOLDER

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

Refer to Standard Fire Policy for proof of loss and appraisal provision.

 

NOTICE OF CONCELLATION

Title 24-A §3007
Cancellation and non-renewal

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 — refer to subsection 6 of statute.

 

NOTICE OF NON-RENEWAL

Title 24-A §3007
Cancellation and non-renewal

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.

 

NOTICE REQUIREMENTS

Title 24-A §3007
Cancellation and non-renewal

 

 

PAYMENT OF LOSS TIME PERIOD

Title 24-A §2436. Interest on overdue payments

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

Payment within thirty days and interest on overdue payments of 1.5% per month.

Refer to Standard Fire Policy for proof of loss provision.

 

PERMISSIBLE REASONS FOR CANCELLATION

Title 24-A §3007
Cancellation and non-renewal

See statute for permissible grounds.

 

PERMISSIBLE REASONS FOR NON-RENEWAL

Title 24-A §3007
Cancellation and non-renewal

See statute for permissible grounds.

 

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.  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.

 

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-A. Permitted activities

Insurance Bulletin 233

Refer to Statutes and Bulletin for specific information.

 

STANDARD FIRE POLICY

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

Title 24-A §3003. Combination coverages

Provisions of Standard Fire Policy may be incorporated in all property contracts or by endorsement using a Maine Standard Fire Policy form.

 

SUBROGATION

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

Title 24-A § 2910-A Subrogation; medical payments coverage

Permitted by Standard fire policy.

 

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 §3002 Standard fire policy required; exceptions

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

Permitted by Standard fire policy.

 

Insured must be given 2 years from date of loss to bring suit against insurer.

 

TERRORISM

Insurance Bulletin 348

 

 

VICARIOUS LIABILITY

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

Parents/legal guardians liable for action of minor children up to $800.

 

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 in applications must be considered 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 cost multiplier.

 

CALCULATION OF UNEARNED/RETURN PREMIUM

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.

 

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 competitor 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 AND OTHER FACTORS

Title 24-A - §2303. Making of rates

Title 24-A §2304-A Rate filings

Credibility standards must be supported.

 

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 supported.

 

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 or loss cost multiplier calculation should reflect expenses of insurer.

 

EXPERIENCE

Title 24-A - §2303. Making of rates

Rate or loss cost 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

A group policy for Farmowners is not eligible under the property and casualty group 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 or loss cost multiplier calculation should reflect expenses 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 cost 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 filing and file loss costs multiplier.

 

 

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.

 

RATE RANGES

Title 24-A - §2304-A. Rate filings

Must be filed as part of rating plan

 

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.

 

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.

 

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, every other rating rule, and every modification to the foregoing should be filed and supported.

 

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

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.

 

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 filing and file loss costs multiplier.

 

 

 

Last Updated: April 30, 2013