Source: http://www.state.me.us/pfr/insurance/review_checklists/Rate_filing_Commercial_Multi_Peril.htm
Timestamp: 2014-12-21 06:14:13
Document Index: 249643810

Matched Legal Cases: ['§2413', '§3007', '§ 3003', '§2162', '§3003', '§3003', '§2414', '§2908', '§3007', '§ 3002', '§2910', '§2304', '§2306', '§2308', '§ 2303', '§2304', '§ 2403', '§2303', '§2304', '§ 2403', '§2303']

Commercial Multiple Peril : Form & Rate Filing Review Checklists : Bureau of Insurance
> Company Services > Review Checklists > Commercial Multiple Peril
Non-Liability Portion
Commercial Farm and Ranch
Other CMP Policies
DESCRIPTION OF REVIEWSTANDARDS REQUIREMENTS
ELECTRONIC FILINGS Insurance Bulletin 360
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 Policies effective at 12:01 AM Standard Time
Commercial Multiple Peril Must have requisite certificate of authority to transact business before submitting rate/rule/form filings
Large commercial risks exempt from filing—refer to statute for criteria and definition of large commercial risk
Must include authorization to communicate directly with third party filers FORMS-POLICY PROVISIONS REFERENCE
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.
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 on all applications (i.e. new business, renewal, supplemental, etc…). ARBITRATION
Title 24-A - §3007. Cancellation and nonrenewal
Maine amendatory endorsement must include statutory grounds for mid-term cancellation; statutory notice required for both cancellation & nonrenewal; Maine amendatory endorsement must include mailing time language
Title 24-A - § 3003Combination coverage
Property & Casualty contracts are subject to provisions of Chapter 41, Chapter 39 and other applicable provisions of Title 24-A (The Maine Insurance Code)
Insurance Bulletin 329 and statute contain provisions relating to the use of credit information and credit insurance scores
Title 24-A §2162. Unfair discrimination, rebates prohibited-- property, casualty, surety insurance
Statutory (or substantially similar) wording must be included on all applications (i.e. new business, renewal, supplemental, etc…) and claim forms
Title 24-A §3003. Combination coverage Insurance Bulletin 372
Title 24-A §3003. Combination coverage
Actual Cash Value defined as replacement cost less depreciation
MINIMUM STANDARDS FOR CONTENT (POLICIES AND STANDARD FORMS)
Title 24-A §2414. Standard provisions, in general
Title 24-A – Chapter 39, Casualty Insurance Contracts Title 24-A - MAINE INSURANCE CODE
Title 24-A §2908. Casualty insurance contracts.
Title 24-A §3007. Property insurance contracts.
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
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
POST JUDGMENT INTEREST Insurance Bulletin 353
Statute contains a deemer provision.
Sales inducements rebates prohibited unless contained in policy.
Property coverage must include Maine Standard Fire Policy provisions (24-A M.R.S.A. § 3002).
Title 24-A - §2910-A. Subrogation; medical payments coverage
Insurance Bulletin 348 Permitted on this line of business but cannot exclude Standard Fire Policy TERRORISM
Insurance - Bulletin 348
Permitted on this line of business but cannot exclude Standard Fire Policy perils Insurance - Bulletin 348
Parents/legal guardians liable for action of minor children up to $800
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
Statements on applications are deemed to be representations, not warranties.
"A" RATED RISKS Title 24-A - §2304-A. Rate filings
Insurer may satisfy rate filing requirements by adopting advisory organization filings and filing loss costs multiplier.
Title 24-A - §2306. Disapproval of filing
May support filing by citing specific competitor filing
Title 24-A - §2308. Excess rates
Title 24-A § 2303 Making of Rates
Credibility standard must be supported.
Rate or loss cost multiplier calculation should reflect credibility and other factors
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
Rate or loss cost multiplier calculation should reflect experience of insurer
IRPM/ SCHEDULE RATING Title 24-A - §2304-A. Rate filings
Rate or loss cost multiplier calculation reflect judgment of insurer
Must be filed as part of rating plan MULTI-TIER
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
Must be filed as part of rating plan OTHER—Large Commercial Risks
Insurers exempt from filing rate/rule/forms to be issued specifically to large commercial risks; refer to statute for qualifying size criteria of risks in this category. PAYMENT PLANS
Title 24-A - § 2403. “Premium” defined Must be filed as part of rating plan PRICING
Rate or loss cost multiplier calculation may reflect profit-loading and must include consideration for investment income RATE/LOSS COST SUPPORTING INFORMATION
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
All aspects of pricing must be filed and supported and/or may adopt advisory organization reference filing and file loss costs multiplier
Title 24-A - §2303. Making of rates. Title 24-A - §2304-A. Rate filings
Profit must give consideration to investment income RISK CLASSIFICATION
Risks may be grouped by classifications for the establishment of rates and minimum premiums
Title 24-A - § 2403. “Premium” defined Must be filed as part of rating plan SMALL DEDUCTIBLE
Must be filed as part of rating plan TRENDING Title 24-A - §2303. Making of rates
All aspects of pricing must be supported by experience and/or may adopt advisory organization reference filing and file loss costs multiplier