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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
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   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 §404Certificate 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. 

 

Insured must be given 2 years from date of loss to bring suit against insurer. 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 §2413Grounds 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 §2411Representations in applications

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

Title 24-A - §2186 Insurance Fraud Prevention

All statements are considered representations not warranties. 

Must file applications only if to be made part of the policy.

The Maine fraud warning must appear permanently affixed to all applications (new business, renewal, supplemental, etc.)

 
APPRAISALS Title 24-A - §3002. Standard fire policy required; exceptions See standard fire policy requirements with respect to appraisals.  
ARBITRATION Title 24-A § 2433Jurisdiction 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

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).  
CANCELLATION & NON-RENEWAL

Title 24-A - §3048-§3056. MAINE PROPERTY INSURANCE CANCELLATION CONTROL ACT

 

Insurance - Bulletin 201

 

Rule Chapter 355 § 7(C)(2)

The insurance contract must contain statutory grounds for cancellation and nonrenewal if the insurer wants to use them.

Minimum 20 days’ advance notice required for cancellation, except 10 days for nonpayment & must allow 5 days for mail time.  Proof of mailing is not proof of receipt until the fifth calendar day after mailing. 

Minimum 30 days’ advance notice required for nonrenewal & must allow 3 days for mail time.  Proof of mailing is not proof of receipt until the third calendar day after mailing.

Notice of cancellation or nonrenewal must inform insured of right to request a hearing within 30 days of receipt of notice.

 
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. § 3048 et seq.)

 
CREDIT SCORING NOTICE

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

Insurance - Bulletin 329

Statute contains 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

Rule Chapter 375

Group policies for Homeowners NOT among the products permitted under statute or rule.   
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 has 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 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.  
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 - §2436. Interest on overdue payments

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

Payment within sixty days and interest on overdue payments of 1.5% per month.  
POST-JUDGMENT INTEREST Bulletin 353 Post-judgment interest must be paid in accordance with Maine law.  
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 & Bulletin 384

Refer to Statutes and Bulletins 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.  
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 Liable up to $800 for damage of minor between 7 and 17 years old.  
VOIDANCE Title 24-A §2411 Representations in applications Insurer 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.  
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.  
COMPETITION Title 24-A §2304-A. Rate filings May support filing by citing specific competitor’s filing.  
CONSENT-TO-RATE Title 24-A §2308. Excess rates Consent to rate and form requirements for individual risk filings.  
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.  
DEDUCTIBLE Title 24-A § 2304-A. Rate Filings Must be filed as part of rating plan  
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 experience of insurer.  
FEES & SERVICE CHARGES 

Title 24-A § 2304-A. Rate Filings

Title 24-A - § 2403. “Premium” defined

Insurance – Bulletin 383

Must be filed as part of rating plan.  Fees and service charges include those associated with collection expense such as installment, nonsufficient funds, reinstatement, late and convenience fees, and other fees associated with policy issuance and delivery.  Fees include those imposed by third-party vendors, such as automated clearing houses.  
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  
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

Insurer must file and support all aspects of pricing by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.  
PROFIT LOADING Title 24-A §2303. Making of rates Rate and loss cost multiplier calculation may reflect profit-loading and must account for anticipated 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

Insurer must file and support all aspects of pricing by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.  
RATING PLAN REQUIREMENTS Title 24-A § 2304-A. Rate Filings Insurer must file and support all aspects of pricing by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.  
RETURN ON EQUITY/INVESTMENT INCOME Title 24-A §2303. Making of rates Profit must account for anticipated investment income.  
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.  
TRENDING 

Title 24-A §2303. Making of rates

Title 24-A § 2304-A. Rate Filings

Insurer must file and support all aspects of pricing by experience and/or may adopt advisory organization reference filing and file loss costs multiplier.  

 

Last Updated: June 23, 2014