Homeowners

LINE OF BUSINESS:	Homeowners	LINE(S) OF INSURANCE	CODES
		Condos	4.0001
		Mobile Homes	4.0002
Code:	4.0000	Owner Occupied	4.0003
		Tenants	4.0004
		Other	4.0005
IF CHECKLIST IS NOT APPLICABLE, PLEASE EXPLAIN:

REVIEW REQUIREMENTS	REFERENCE	DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS
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		Enter New Business and Renewal effective dates under the General Information tab in SERFF
FILING SUBMISSION	Title 24-A - §2412 Filings approval of forms Title 24-A - §2304-A.	Form Filing Requirements Rate/Rule 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	Homeowners	Must have requisite certificate of authority to transact business before submitting rate/rule/form filing.
THIRD PARTY FILERS AUTHORITY	Title 24-A - §2412 Filings, approval of forms Title 24-A - §2304-A. Rate Filings	Form Filing Requirements. Must include authorization to communicate directly with third party filers because filings are confidential until effective.
FORMS--POLICY PROVISIONS
ACCESS TO COURTS	Title 24-A - §2433 Jurisdiction of courts, limitations of actions	Maine Courts have jurisdiction.
ACTION AGAINST COMPANY	Title 24-A - §3002. Standard fire policy required; exceptions Title 24-A - §2433. Jurisdiction of courts, limitation of actions	Standard fire policy. Foreign insurers.
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 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.
APPRAISALS	Title 24-A - §3002. Standard fire policy required; exceptions	See standard fire policy requirements with respect to appraisals.
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	24-A § 2308.2 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 - §3048-§3056. Scope of subchapter Insurance - Bulletin 201	Statutory grounds 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 - §3002. Standard fire policy required; exceptions Title 24-A - Chapter 41, PROPERTY INSURANCE CONTRACTS	Maine Standard Fire Policy applies. Maine amendatory endorsement must contain cancellation/nonrenewal wording consistent with Maine Property Insurance Cancellation Control Act (24-A M.R.S.A. § 3048 et seq.)
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.
DEFENSE COSTS	Title 24-A - §2413. Grounds for disapproval	Do not permit defense costs within limit of liability.
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.
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 and claim forms.
GROUP POLICIES	Title 24-A - §2951. Group property and casualty insurance	Group policies for Homeowners NOT among the products permitted.
INSURANCE TO VALUE	Title 24-A - §3002. Standard fire policy required; exceptions
LEAD	Title 24-A - §2413. Grounds for disapproval Title 22 - Chapter 252, LEAD POISONING CONTROL ACT	Prohibited — deceptively affects coverage purported to be assumed. Permit exclusion beginning ≥ 31 days after State of Maine Department of Health and Human Services or a DHHS licensed lead inspector has given insured notice of environmental lead hazard & insured failed to remove the lead hazard.
LIBERALIZATION CLAUSE		Generally a standard policy condition in most policies, but not a requirement.
LOSS VALUATION	Title 24-A - §3002. Standard fire policy required; exceptions Title 24-A - §3004-A. Actual cash value	See appraisal clause in Standard Fire Policy. Statutory definition of ACV
Minimum Retained Premium		Considered part of the rating plan.
MINIMUM STANDARDS FOR CONTENT (POLICIES AND STANDARD FORMS)	Title 24-A - §3002. Standard fire policy required; exceptions Title 24-A §2414 Standard provisions, in general	Maine Standard Fire Policy. Standard provisions.
MOLD		Permitted with a sub limit
MORTGAGEE/LIENHOLDER	Title 24-A - §3002. Standard fire policy required; exceptions	Maine Standard Fire Policy. Must provide notice to any mortgagee/lien holder mentioned in the loss payable clause.
NOTICE OF CANCELLATION	Title 24-A - §3049. Notice of cancellation; reasons Title 24-A - §3050. Delivery of notice	Minimum 20 days advance notice required for cancellation except 10 days for nonpayment & must allow for 5 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 30 days of receipt of notice.
NOTICE OF NON-RENEWAL	Title 24-A §3051 Notice of intent	Minimum 30 days advance notice required for non renewal & 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 30 days of receipt of notice
PARTICIPATING POLICIES	Title 24-A §3417. Participating policies	Participating and non-participating policies permitted. Applies to domestic companies.
PAYMENT OF LOSS TIME PERIOD	Title 24-A §3417. Participating policies	Payment within sixty days and interest on overdue payments of 1.5% per month.
PERMISSIBLE REASONS FOR CANCELLATION	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 §3051. Notice of intent	See statute for permissible grounds.
POST JUDGMENT INTEREST	Bulletin 353	Post judgment interest must be paid in accordance with Maine law.
PRIOR APPROVAL	Title 24-A §2412. Filing, approval of forms Title 24-A § 2304-A. Rate Filings	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.
PUNITIVE DAMAGES	Title 24-A - §2413. Grounds for disapproval	Punitive damages may be excluded. Maine law prohibits indemnification for an insured’s own criminal acts. See, Landry v. Leonard, 1998 ME 241.
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 Insurance Bulletin 233	Refer to Statutes and Bulletin for specific information
STANDARD FIRE POLICY	Title 24-A - §3002. Standard fire policy required; exceptions	Homeowners’ policies are subject to standard fire policy.
SUBROGATION	Title 24-A - §3002. Standard fire policy required; exceptions Title 24-A § 2910-A Subrogation; medical payments coverage	See 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	Insured must be given 2 years from date of loss to bring suit against insurer.
TERRORISM	Insurance - Bulletin 348	Not permitted on this line.
VICARIOUS LIABILITY	Title 14 - §304. Liability of parents or legal guardians for damage by children	Parent or Legal Guardians 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).
WARRANTIES	Title 24-A §2411 Representations in applications	Statements on applications are deemed to be representations, not warranties.
WATER/SEWER BACK-UP		Optional endorsement to the homeowners policy
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.
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. General provisions	May support filing by citing specific competitors filing.
CONSENT-TO-RATE	Title 24-A §2308. Excess rates	Consent to rate and form requirements for individual risk filings.
CREDIBILITY	Title 24-A §2303. Making of rates	Rate and loss costs multiplier calculation should reflect credibility.
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	Permitted - refer to statute and bulletin for specific information.
DEDUCTIBLE	Title 24-A § 2304-A. Rate Filings
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 expenses of insurer.
GROUP POLICIES	Title 24-A - §2951. Group property and casualty insurance	Not permitted — Homeowners not among permitted products
JUDGMENT	Title 24-A §2303. Making of rates	Rate and loss costs multiplier calculation may reflect judgment of the 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 RETAINED PREMIUM	Title 24-A § 2304-A. Rate Filings	Must be filed as part of rating plan
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 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
PREMIUM REFUND OR RETENTION	Title 24-A - §3002. Standard fire policy required; exceptions	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 filing loss costs multiplier.
PROFIT LOADING	Title 24-A §2303. Making of rates	Rate and loss cost 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 filing and filing 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 filing 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
TRENDING	Title 24-A §2303. Making of rates Title 24-A § 2304-A. Rate Filings	All aspects of pricing must be filed and supported by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.

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