reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1951. Definitions

§1951. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.   [PL 1995, c. 673, Pt. A, §3 (NEW).]
1.  Carrier.
"Carrier" means any insurance company, nonprofit hospital and medical service organization or health maintenance organization authorized to issue health plans in this State. For the purposes of this chapter, carriers that are affiliated companies or that are eligible to file consolidated tax returns are treated as one carrier and any restrictions or limitations imposed by this chapter apply as if all health plans delivered or issued for delivery in this State by affiliated carriers were issued by one carrier. For purposes of this chapter, health maintenance organizations are treated as separate organizations from affiliated insurance companies and nonprofit hospital and medical service organizations.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
2.  Private purchasing alliance.
"Private purchasing alliance" or "alliance" means a corporation established under former Title 13‑A, Title 13‑B or Title 13‑C to provide health insurance to its members through one or more participating carriers.
[PL 2003, c. 428, Pt. H, §1 (AMD).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW). PL 1997, c. 616, §1 (AMD). RR 2001, c. 2, §B42 (COR). RR 2001, c. 2, §B58 (AFF). PL 2001, c. 369, §1 (AMD). PL 2003, c. 428, §H1 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1952. Licensure

§1952. Licensure
A private purchasing alliance may not market, sell, offer or arrange for a package of one or more health benefit plans underwritten by one or more carriers without first being licensed by the superintendent. The superintendent shall specify by rule standards and procedures for the issuance and renewal of licenses for private purchasing alliances. A rule may require an application fee of not more than $400 and an annual license fee of not more than $100. A license may not be issued until the rulemaking required by this chapter has been undertaken and all required rules are in effect. Dirigo Health, as established in chapter 87, is exempt from the licensure requirements of this section as an independent executive agency of the State.   [PL 2003, c. 469, Pt. E, §8 (AMD).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW). PL 2003, c. 428, §H2 (AMD). PL 2003, c. 469, §E8 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1953. Powers

§1953. Powers
In addition to the powers granted in Title 13‑B or Title 13‑C, an alliance may do any of the following:   [RR 2001, c. 2, Pt. B, §43 (COR); RR 2001, c. 2, Pt. B, §58 (AFF).]
1.  Membership fees.
Set reasonable fees for membership in the alliance for financing reasonable and necessary costs incurred in administering the alliance;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
2.  Premium collection.
Provide premium collection services for health benefit plans offered through the alliance if the insurer or health maintenance organization offering the plan gives express written authorization to the alliance or any other person or entity acting on behalf of the alliance to act as the insurer's or the health maintenance organization's agent for that purpose;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
3.  Contracts.
Contract with qualified independent 3rd parties for any service necessary to carry out the powers and duties authorized or required by this chapter;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
4.  Standards.
Exclude a carrier or freeze enrollment in a carrier for failure to achieve established quality, access or information reporting standards of the alliance;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
5.  Data collection.
Develop uniform standards for data to be provided by participating carriers and providers. The alliance may collect data necessary for evaluation of the performance of participating carriers and their provider networks by consumers, providers, employers and the superintendent;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
6.  Negotiation.
Negotiate with participating carriers the premium rates charged for coverage offered through the alliance, consistent with rules adopted by the superintendent; or
[PL 1995, c. 673, Pt. A, §3 (NEW).]
7.  Risk adjustment.
Establish procedures, subject to approval by the superintendent, for adjusting payments within each risk pool to participating carriers if the alliance finds that some carriers have a significantly disproportionate share of high-risk or low-risk enrollees.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW). PL 1997, c. 616, §2 (AMD). RR 2001, c. 2, §B43 (COR). RR 2001, c. 2, §B58 (AFF).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1954. Duties

§1954. Duties
An alliance shall:   [PL 1995, c. 673, Pt. A, §3 (NEW).]
1.  Carrier eligibility.
Develop and make available a list of objective criteria, subject to rules adopted by the superintendent, that participating carriers must meet in order to be eligible to participate in the alliance;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
2.  Enrollee choice.
Ensure that enrollees have a choice among a reasonable number of competing carriers and types of health benefit plans.
A.   [PL 2001, c. 369, §2 (RP).]
B.   [MRSA T. 24-A §1954, sub-§2, ¶ B (RP).]
C.   [PL 1997, c. 370, Pt. A, §2 (RP).]
[PL 2001, c. 369, §2 (AMD).]
3.  Enrollment.
Develop standard enrollment procedures in accordance with rules adopted by the superintendent;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
4.  Plan descriptions.
Publish educational materials, plan descriptions and comparison sheets describing participating carriers and the health benefit plans available through the alliance for use in enrolling eligible members. The information may include an assessment of utilization management procedures and the level of quality and cost-effective care;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
5.  Enrollee eligibility.
Establish eligibility standards for membership in accordance with rules adopted by the superintendent. Eligibility standards may not relate to health status;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
6.  Acceptance of enrollees.
Accept all applicants for membership that meet the alliance's eligibility standards;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
7.  Risk pools.
Develop standards for classifying groups of participating members into risk pools. The risk pools may include one or more risk pools for enrolled employees and their dependents and a risk pool for enrolled individuals and their dependents;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
8.  Annual report.
Prepare an annual report on the operations of the alliance to the superintendent, which must include an accounting of all outside revenues received by the alliance and internal and independent audits and any other information the superintendent may require;
[PL 1995, c. 673, Pt. A, §3 (NEW).]
9.  Trust account.
Maintain a trust account or accounts for deposit of all money received and collected for the operation of the alliance. An alliance and its board members, employees and agents have a fiduciary duty with respect to all money received or owed to it to ensure payments of its obligations and a full accounting to its members and the superintendent; and
[PL 1995, c. 673, Pt. A, §3 (NEW).]
10.  Violations.
Report to the superintendent any suspected or alleged law violations.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
The superintendent may specify further duties by rule.   [PL 1995, c. 673, Pt. A, §3 (NEW).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW). PL 1997, c. 370, §§A1,2 (AMD). PL 2001, c. 369, §2 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1955. Restrictions

§1955. Restrictions
1.  Restricted activities.
An alliance may not purchase health care services, assume risk for the cost or provision of health care services or otherwise contract with health care providers for the provision of health care services to enrollees without the prior approval of the superintendent.
[PL 1997, c. 616, §3 (AMD).]
2.  Licensing.
A person who solicits applications for insurance, negotiates insurance contracts or takes applications for insurance from enrollees on behalf of an alliance or on behalf of insurance carriers or health maintenance organizations that have contracted with the alliance must be licensed with the bureau in compliance with chapter 16.
[PL 1997, c. 457, §32 (AMD); PL 1997, c. 457, §55 (AFF).]
3.  Conflict of interest.
A person may not be a board member, officer or employee of an alliance if that person is employed as or by, is a member of the board of directors of, is an officer of, or has a material direct or indirect ownership interest in a carrier or health care provider. A person may not be a board member or officer of an alliance if a member of that person's household is a member of the board of directors of, is an officer of or has a material direct or indirect ownership interest in a carrier or health care provider. An employee of an alliance who is licensed as an agent, broker or consultant may act under that license only on behalf of the alliance and only within the scope of that person's duties as an employee.
[PL 1997, c. 616, §3 (AMD).]
4.  Commissions.
All commissions or other payments to the alliance from or on behalf of carriers must inure to the benefit of the alliance and alliance members. An employee of an alliance may not receive compensation that is contingent upon the amount of coverage sold or upon the health carrier that is chosen. This subsection does not prohibit an alliance from arranging coverage through an unaffiliated agent or broker who is paid on a commission basis in the ordinary course of business.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
5.  Rulemaking.
The superintendent may specify further restrictions by rule.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW). PL 1997, c. 457, §32 (AMD). PL 1997, c. 457, §55 (AFF). PL 1997, c. 616, §3 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1956. Authority of superintendent

§1956. Authority of superintendent
1.  Alliance conduct.
The superintendent has the authority to regulate the establishment and conduct of alliances as set forth in this chapter.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
2.  Representations.
A person or entity not licensed by the superintendent as a private purchasing alliance and engaged in the purchase, sale, marketing or distribution of health insurance or health care benefit plans may not represent itself as an alliance, health insurance purchasing alliance, purchasing alliance, health insurance purchasing cooperative or purchasing cooperative, or otherwise use a confusingly similar name.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
3.  Conflict.
Nothing in this chapter may be considered in conflict with or limit the duties and powers granted to the superintendent under the laws of this State.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
4.  Penalties.
Violations of this chapter are subject to the penalties contained in section 12‑A.
[PL 1995, c. 673, Pt. A, §3 (NEW).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 18-A: PRIVATE PURCHASING ALLIANCES › 24-A §1957. Rulemaking

§1957. Rulemaking
The superintendent shall adopt rules necessary to carry out the requirements of this chapter before January 1, 1997. All rules adopted pursuant to this chapter are major substantive rules as defined in Title 5, chapter 375, subchapter II‑A.   [PL 1995, c. 673, Pt. A, §3 (NEW).]
SECTION HISTORY
PL 1995, c. 673, §A3 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2001. Short title

§2001. Short title
This chapter constitutes and may be cited as the "Surplus Lines Law."   [PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2001-A. Scope

§2001-A. Scope
This chapter applies exclusively to transactions when this State is the home state of the applicant or insured. Nothing in this chapter applies to the sale, solicitation, negotiation, placement or writing of contracts of insurance for any applicant or insured whose home state is in a jurisdiction other than in this State.   [PL 2011, c. 331, §1 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
SECTION HISTORY
PL 2011, c. 331, §1 (NEW). PL 2011, c. 331, §§16, 17 (AFF).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2002. Exemptions (REPEALED)

§2002. Exemptions
(REPEALED)
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1987, c. 769, §A92 (AMD). PL 1993, c. 153, §15 (RP).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2002-A. Exemptions from provisions

§2002-A. Exemptions from provisions
1.
The following kinds of insurance must be procured from authorized insurers and are not eligible for export in the surplus lines market:
A. Life insurance;   [PL 1993, c. 153, §16 (NEW).]
B. Health insurance, except disability insurance; or   [PL 2019, c. 20, §1 (AMD).]
C. Employee benefit excess insurance.   [PL 1993, c. 153, §16 (NEW).]
[PL 2019, c. 20, §1 (AMD).]
2.
This surplus lines law may not be used to place reinsurance. Nothing in this subsection prohibits the cession or assumption of reinsurance as otherwise permitted by this Title.
[PL 1993, c. 153, §16 (NEW).]
3.
Producers with surplus lines authority may procure the following kinds of insurance from eligible surplus lines insurers without adherence to the procedures set forth in section 2004 or any other requirement to determine whether the full amount or type of insurance sought can be obtained from admitted insurers:
A. Wet marine and transportation insurance;   [PL 1993, c. 153, §16 (NEW).]
B. Insurance on subjects located, resident or to be performed wholly outside of this State, or on vehicles or aircraft owned and principally garaged outside this State;   [PL 1993, c. 153, §16 (NEW).]
C. Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in such operations;   [PL 2011, c. 331, §2 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
D. Insurance on aircraft owned or operated by manufacturers of aircraft or of aircraft operated in commercial interstate flight, or cargo of such aircraft, or against liability other than workers' compensation and employer's liability arising out of the ownership, maintenance or use of such aircraft; or   [PL 2011, c. 331, §2 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
E. Insurance placed by a producer with surplus lines authority for an exempt commercial purchaser if:
(1) The producer has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that provides greater protection with more regulatory oversight; and
(2) The exempt commercial purchaser has subsequently requested in writing for the producer to procure or place such insurance from a nonadmitted insurer.   [PL 2011, c. 331, §2 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
[PL 2011, c. 331, §2 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
SECTION HISTORY
PL 1993, c. 153, §16 (NEW). PL 1997, c. 592, §48 (AMD). PL 2011, c. 331, §2 (AMD). PL 2011, c. 331, §§16, 17 (AMD). PL 2019, c. 20, §1 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2003. Definitions

§2003. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.   [PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
1.
"Producer" means a producer with surplus lines authority duly licensed as such under this chapter.
[PL 2011, c. 331, §3 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
2.
To "export" means to place insurance in a nonadmitted insurer under this Surplus Lines Law.
[PL 2011, c. 331, §3 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
3.
"Admitted insurer'' means an insurer licensed to engage in the business of insurance in this State.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
4.
"Affiliate'' means, with respect to an insured, any entity that controls, is controlled by or is under common control with the insured.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
5.
"Affiliated group'' means any group of affiliates.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
6.
"Exempt commercial purchaser'' means an exempt commercial purchaser as defined by the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203, Section 527.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
7.
"Home state'' means:
A. With respect to an insured:
(1) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence; or
(2) If 100% of the insured risk is located out of the state referred to in subparagraph 1, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated; or   [PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
B. With respect to an affiliated group, if more than one of the insureds from an affiliated group are named insureds on a single nonadmitted insurance contract, the home state, as determined pursuant to paragraph A, of the member of the affiliated group that has the largest percentage of premium attributed to it under that insurance contract.   [PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
8.
"Nonadmitted insurance'' means any property and casualty insurance permitted to be placed through a surplus lines broker with a nonadmitted insurer eligible to accept that insurance.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
9.
''Nonadmitted insurer'' means an insurer not licensed to engage in the business of insurance in this State. "Nonadmitted insurer" does not include a risk retention group, as that term is defined in section 6093, subsection 13.
[PL 2011, c. 331, §3 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1997, c. 592, §49 (AMD). PL 2011, c. 331, §3 (AMD). PL 2011, c. 331, §§16, 17 (AFF).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2004. Conditions for export

§2004. Conditions for export
If certain insurance coverages cannot be procured from authorized insurers, such coverages, hereinafter designated "surplus lines," may be procured from unauthorized insurers, subject to the following conditions:   [PL 1969, c. 132, §1 (NEW).]
1.
The insurance must be procured through a licensed producer with surplus lines authority.
[PL 1997, c. 592, §50 (AMD).]
2.
The desired coverage is necessary for the adequate protection of a risk in the State.
[PL 1969, c. 132, §1 (NEW).]
3.
It may be written under the laws of this State by an authorized insurer.
[PL 1969, c. 132, §1 (NEW).]
4.
The insurance is not available after diligent effort has been made to place the coverage with authorized insurers.
[PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1997, c. 592, §50 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2005. Report of coverage (REPEALED)

§2005. Report of coverage
(REPEALED)
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1969, c. 177, §29 (RPR). PL 1973, c. 585, §12 (AMD). PL 1997, c. 592, §51 (RP).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2006. Open lines for export

§2006. Open lines for export
1.
The superintendent may by order declare eligible for export generally and without compliance with section 2004, subsections 2, 3 and 4, any class or classes of insurance coverage or risk for which the superintendent finds, after a hearing of which notice was given to each insurer authorized to transact such class or classes in this State, that there is not a reasonable or adequate market among authorized insurers either as to acceptance of the risk, contract terms, or premium or premium rate. Any such order shall continue in effect during the existence of the conditions upon which predicated, but subject to earlier termination by the superintendent.
[PL 1997, c. 592, §52 (AMD).]
2.
The producer shall file with or as directed by the superintendent a memorandum as to each such coverage placed by the producer in an unauthorized insurer, in such form and context as the superintendent may reasonably require for the identification of the coverage and determination of the tax payable to the State relative thereto.
[PL 1997, c. 592, §52 (AMD).]
3.
A producer may also place with authorized insurers any insurance coverage made eligible for export generally under subsection 1, and without regard to rate or form filings that may otherwise be applicable as to the authorized insurer. As to coverages so placed in an authorized insurer the premium tax thereon must be reported and paid by the insurer as required generally under the law of this State.
[PL 1997, c. 592, §53 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1969, c. 177, §30 (AMD). PL 1973, c. 585, §12 (AMD). PL 1997, c. 592, §§52,53 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2007. Eligible surplus lines insurers

§2007. Eligible surplus lines insurers
1.
A producer may not knowingly place surplus lines insurance with an insurer that is unsound financially or that is ineligible under this section.
[PL 1997, c. 592, §54 (AMD).]
2.
The superintendent shall from time to time publish a list of all surplus lines insurers determined by the superintendent to be eligible currently, and shall mail a copy of such list to each producer at the producer's office last of record with the superintendent. This subsection may not be construed to cast upon the superintendent the duty of determining the actual financial condition or claims practices of any unauthorized insurer; and the status of eligibility, if granted by the superintendent, may indicate only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the superintendent has no credible evidence to the contrary. While any such list is in effect, the producer shall restrict to the insurers so listed all surplus lines business placed by the producer.
[PL 1997, c. 592, §54 (AMD).]
3.
The superintendent shall approve a United States insurer's request for eligibility if the insurer:
A. Is authorized to write such insurance in its domiciliary jurisdiction;   [PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
B. Has established satisfactory evidence of good repute and financial integrity; and   [PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
C. Maintains capital and surplus, or its equivalent under the laws of its state of domicile, in an amount at least equal to the greater of:
(1) The minimum capital and surplus that would be required if the insurer were licensed in this State; and
(2) $15,000,000.   [PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
[PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
4.
The superintendent may list an insurer as eligible if it does not meet the minimum capital and surplus requirements of subsection 3 upon an affirmative finding of acceptability by the superintendent. The finding must be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. The superintendent may not make an affirmative finding of acceptability if the nonadmitted insurer's capital and surplus is less than $4,500,000.
[PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
5.
A non-United States insurer is considered eligible to write insurance on an unauthorized basis in this State if it is listed on the quarterly listing of alien insurers maintained by the National Association of Insurance Commissioners.
[PL 2011, c. 331, §4 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1997, c. 592, §54 (AMD). PL 2011, c. 331, §4 (AMD). PL 2011, c. 331, §§16, 17 (AFF).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2008. Evidence of the insurance; changes; penalty

§2008. Evidence of the insurance; changes; penalty
1.
Upon placing a surplus lines coverage, the producer shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such policy is not then available, the surplus lines producer's certificate. Such a certificate must be executed by the producer and show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer. If the direct risk is assumed by more than one insurer, the certificate must state the name and address and proportion of the entire direct risk assumed by each such insurer.
[PL 1997, c. 592, §55 (AMD).]
2.
A producer may not issue any such certificate or any cover note, or purport to insure or represent that insurance will be or has been granted by any unauthorized insurer, unless the producer has prior written authority from the insurer for the insurance, or has received information from the insurer in the regular course of business that such insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured.
[PL 1997, c. 592, §55 (AMD).]
3.
If, after the issuance and delivery of any such certificate, there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the producer's original certificate, or in any other material respect as to the insurance evidenced by the certificate, the producer shall promptly issue and deliver to the insured a substitute certificate accurately showing the current status of the coverage and the insurers responsible under the certificate.
[PL 1997, c. 592, §55 (AMD).]
4.
If a policy issued by the insurer is not available upon placement of the insurance and the producer has issued and delivered the certificate as provided in this section, upon request of the insured the producer shall as soon as reasonably possible procure from the insurer its policy evidencing the insurance and deliver the policy to the insured in replacement of the producer's certificate.
[PL 1997, c. 592, §55 (AMD).]
5.
Any producer with surplus lines authority who knowingly or negligently issues a false certificate of insurance or who fails promptly to notify the insured of any material change with respect to such insurance by delivery to the insured of a substitute certificate as provided in subsection 3, upon conviction, is subject to the penalty provided by section 12‑A or to any greater applicable penalty otherwise provided by law.
[PL 2007, c. 466, Pt. D, §5 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1997, c. 592, §55 (AMD). PL 2007, c. 466, Pt. D, §5 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2009. Identification and notice on contract

§2009. Identification and notice on contract
Every insurance contract procured and delivered as a surplus lines coverage pursuant to this chapter shall have stamped upon it, and bearing the name of the producer with surplus lines authority who procured it, the following:   [PL 1997, c. 592, §56 (AMD).]
"This insurance contract is issued pursuant to the Maine Insurance Laws by an insurer neither licensed by nor under the jurisdiction of the Maine Bureau of Insurance."   [PL 1997, c. 592, §56 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1997, c. 592, §56 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2009-A. Cancellation and nonrenewal of surplus lines coverage

§2009-A. Cancellation and nonrenewal of surplus lines coverage
1.  Notice.
Cancellation and nonrenewal by an insurer of surplus lines coverage subject to this chapter shall not be effective unless received by the named insured at least 14 days prior to the effective date of cancellation or, when the cancellation is for nonpayment of premium, at least 10 days prior to the effective date of cancellation. A postal service certificate of mailing to the named insured at the insured's last known address shall be conclusive proof of receipt on the 5th calendar day after mailing.
[PL 1989, c. 172, §1 (NEW).]
2.  Exemption.
Cancellation and nonrenewal by an insurer of surplus lines coverage subject to this chapter shall not be subject to sections 2908 and 3007.
[PL 1989, c. 172, §1 (NEW).]
SECTION HISTORY
PL 1989, c. 172, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2010. Surplus lines insurance valid

§2010. Surplus lines insurance valid
Insurance contracts procured as surplus line coverage from unauthorized insurers in accordance with this chapter shall be fully valid and enforceable as to all parties, and shall be given recognition in all matters and respects to the same effect as like contracts issued by authorized insurers.   [PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2011. Insurer's liability for losses and unearned premiums

§2011. Insurer's liability for losses and unearned premiums
1.
As to a surplus lines risk that has been assumed by an unauthorized insurer pursuant to this chapter, and if the premium has been received by the producer with surplus lines authority who placed such insurance, in all questions arising under the coverage as between the insurer and the insured the insurer is deemed to have received the premium due to it for such coverage; and the insurer is liable to the insured as to losses covered by such insurance, and for unearned premiums that may become payable to the insured upon cancellation of such insurance, whether or not in fact the producer is indebted to the insurer with respect to the insurance or for any other cause.
[PL 1997, c. 592, §57 (AMD).]
2.
Each unauthorized insurer assuming a surplus lines risk under this chapter is deemed to have subjected itself to the terms of this section.
[PL 1997, c. 592, §57 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1997, c. 592, §57 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2012. Surplus lines authority

§2012. Surplus lines authority
1.
Any person while licensed in this State as a resident producer who is determined by the superintendent to be competent and trustworthy with respect to the handling of surplus lines, and while maintaining an office at a designated location in this State, may be licensed as a producer with surplus lines authority.
[PL 1997, c. 592, §58 (AMD).]
2.
Application for the authority must be made to the superintendent on forms as designated and furnished by the superintendent.
[PL 1997, c. 592, §58 (AMD).]
3.
The application and authority fee must be as specified in section 601.
[PL 1997, c. 592, §58 (AMD).]
4.
The producer with surplus lines authority is subject to the applicable provisions of chapter 16.
[PL 1997, c. 592, §58 (AMD).]
5.
A nonresident producer who is considered by the superintendent to be competent and trustworthy with respect to the handling of surplus lines may apply for surplus lines authority under the following circumstances:
A. If the nonresident maintains a business location within this State and maintains all records of surplus lines transactions within this State;   [PL 2001, c. 259, §47 (AMD).]
B. If the nonresident transacts only liability insurance business and only on behalf of a purchasing group registered with the superintendent and the nonresident agrees to produce surplus lines records in this State within 14 days from a request of the superintendent; or   [PL 2001, c. 259, §47 (AMD).]
C. The license is to be issued on a reciprocal basis pursuant to sections 1420‑G and 1420‑O.   [PL 2001, c. 259, §48 (NEW).]
[PL 2001, c. 259, §§47, 48 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1997, c. 457, §§33,34 (AMD). PL 1997, c. 457, §55 (AFF). PL 1997, c. 592, §58 (AMD). PL 2001, c. 259, §§47,48 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2013. License suspension or revocation

§2013. License suspension or revocation
1.
Notwithstanding Title 5, chapter 375, subchapter VI, the superintendent may, after notice and opportunity for hearing, deny, revoke, suspend or limit the permissible activities under any surplus lines authority:
A. If the producer fails to remit the tax as required by section 2018;   [PL 2001, c. 259, §49 (AMD).]
B. If a producer who is required to maintain an office in this State fails to do so, or to keep the records, or to allow the superintendent to examine those records as required by this law, or if the producer removes those records from the State when prohibited;   [PL 2001, c. 259, §49 (AMD).]
C. If the producer places a surplus lines coverage in an insurer other than as authorized under section 2007;   [PL 1997, c. 592, §59 (AMD).]
D. For any other applicable cause for which a producer's license may be suspended or revoked; or   [PL 2001, c. 259, §50 (AMD).]
E. If the producer assists any person or persons not licensed as producers with surplus lines authority by serving as a reporting producer for purposes of section 2015 or 2016 with respect to insurance coverage not procured by the producer.   [PL 1997, c. 592, §59 (AMD).]
[PL 2001, c. 259, §§49, 50 (AMD).]
2.
The procedures provided by chapter 16 for suspension or revocation of licenses apply to suspension or revocation of a surplus lines authority.
[PL 1997, c. 592, §59 (AMD).]
3.
Upon a ruling by the superintendent suspending or revoking a producer's surplus lines authority the superintendent may suspend or revoke all other licenses or authorities held by the same individual under this Title.
[PL 1997, c. 592, §59 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1977, c. 694, §§411,412 (AMD). PL 1985, c. 564, §3 (AMD). PL 1991, c. 298, §4 (AMD). PL 1995, c. 329, §§28,29 (AMD). PL 1997, c. 457, §35 (AMD). PL 1997, c. 457, §55 (AFF). PL 1997, c. 592, §59 (AMD). PL 2001, c. 259, §§49,50 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2014. Producer with surplus lines authority may compensate another producer

§2014. Producer with surplus lines authority may compensate another producer
A licensed producer with surplus lines authority may accept and place surplus line business for any insurance producer licensed in this State for the kind of insurance involved, and may compensate the producer for the business.   [PL 1997, c. 592, §60 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1997, c. 592, §60 (AMD). RR 2015, c. 2, §13 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2015. Record of procured coverages

§2015. Record of procured coverages
1.
Each producer shall keep in the producer's office a full and true record of each surplus lines coverage procured by the producer, including a copy of each daily report, if any, a copy of each certificate of insurance issued, books of account in which financial entries are recorded respecting these transactions and such of the following items as may be applicable:
A. Amount of the insurance;   [PL 1969, c. 132, §1 (NEW).]
B. Gross premium charged;   [PL 1969, c. 132, §1 (NEW).]
C. Return premium paid, if any;   [PL 1969, c. 132, §1 (NEW).]
D. Rate of premium charged upon the several items of property;   [PL 1969, c. 132, §1 (NEW).]
E. Effective date of the contract and the terms of the contract;   [PL 1997, c. 592, §61 (AMD).]
F. Name and address of each insurer on the direct risk and the proportion of the entire risk assumed by such insurer, if less than the entire risk;   [PL 1997, c. 592, §61 (AMD).]
G. Name and address of the insured;   [PL 1969, c. 132, §1 (NEW).]
H. Brief general description of the property or risk insured and where located or to be performed; and   [PL 1969, c. 132, §1 (NEW).]
I. Other information as may be required by the superintendent.   [PL 1969, c. 132, §1 (NEW).]
[PL 2007, c. 51, §5 (AMD).]
2.
The record may not be removed from this State in the case of a resident producer with surplus lines authority and in the case of both resident and nonresident licensees must be made available and open to examination by the superintendent at all times within 5 years after issuance of the coverage to which it relates. For the purpose of investigation or examination by the superintendent, records may be maintained in electronic form.
[PL 2007, c. 51, §5 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1985, c. 564, §4 (AMD). PL 1997, c. 457, §36 (AMD). PL 1997, c. 592, §61 (AMD). PL 2007, c. 51, §5 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2016. Periodic reports and tax payments

§2016. Periodic reports and tax payments
1.
Each producer with surplus lines authority shall maintain in the producer's office a monthly report showing the amount of insurance placed for any person or organization, the location of each risk, the gross premium charged, the name of each insurer with which the insurance was placed, the date and term of each insurance contract issued during the preceding month and any other pertinent information required by the superintendent. The report must show in the same detail each contract cancelled during the month covered by the report and the return premium on it. The monthly report must be made available to the superintendent for examination at the producer's office location at any time or by delivery to the bureau upon 5 days' notice by the superintendent.
[PL 2007, c. 51, §6 (AMD).]
2.
[PL 2011, c. 331, §5 (RP); PL 2011, c. 331, §§16, 17 (AFF).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1991, c. 674, §1 (RPR). PL 1997, c. 457, §37 (AMD). PL 1997, c. 592, §62 (AMD). PL 1997, c. 660, §B3 (AMD). PL 2007, c. 51, §6 (AMD). PL 2011, c. 331, §5 (AMD). PL 2011, c. 331, §§16, 17 (AFF).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2017. Annual report (REPEALED)

§2017. Annual report
(REPEALED)
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1991, c. 674, §1 (RPR). PL 1995, c. 329, §30 (RP).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2018. Failure to pay tax

§2018. Failure to pay tax
If any producer fails to remit the tax provided by section 2016 within 30 days after the tax is due, the superintendent may, following an adjudicatory hearing, assess a penalty of not less than $25 for each day of delinquency. Any fine collected by the superintendent must be paid to the Treasurer of State and credited to the Insurance Regulatory Fund.   [PL 1997, c. 592, §63 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1979, c. 541, §A162 (AMD). PL 1991, c. 298, §5 (AMD). PL 1991, c. 674, §2 (AMD). PL 1997, c. 592, §63 (AMD). RR 1997, c. 2, §49 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2019. Legal process against surplus line insurer

§2019. Legal process against surplus line insurer
1.
An unauthorized insurer shall be sued, upon any cause of action arising in the State under any contract issued by it as a surplus lines contract pursuant to this law, in the Superior Court.
[PL 1969, c. 132, §1 (NEW).]
2.
Before the surplus lines insurer may do business in this State, each insurer shall appoint an agent to receive service of legal process issued against it in this State. The insurer shall file with the superintendent a copy of the appointment. The notice to the superintendent must be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, showing that those officers who executed the appointment were duly authorized to do so on behalf of the insurer. Service of legal process against the insurer may be made in any such action by service of 2 copies upon the designated agent. If no agent is designated, service of legal process against the insurer may be made by mailing a copy of the process to the producer through whom such insurance was procured, or to the insurer at its principal place of business, addressed to the address of the producer or insurer, as the case may be, last of record with the superintendent. Upon service of process in accordance with this provision, the court is deemed to have jurisdiction in personam of the insurer.
[PL 1997, c. 592, §64 (AMD).]
3.
An unauthorized insurer issuing such policy is deemed thereby to have authorized service of process against it in the manner and to the effect as provided in this section. Any such policy must contain a provision stating the substance of this section, and designating the person to whom process must be served as provided in subsection 2.
[PL 1997, c. 592, §64 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1997, c. 592, §64 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 19: SURPLUS LINES › 24-A §2020. Producer's surety bond

§2020. Producer's surety bond
1.
Every applicant for a surplus lines producer's authority shall file with the superintendent evidence of a bond in favor of the State executed by an authorized surety insurer. The bond is conditioned upon full accounting and due payment to the person entitled to the bond of funds coming into the surplus lines producer's possession through insurance transactions under the license. The bond may be continuous in force and aggregate liability on the bond is limited to payment of not less than $20,000.
[PL 1997, c. 592, §65 (AMD).]
2.
The bond must remain in force until released by the superintendent or until canceled by the surety. Without prejudice to liability previously incurred, the surety may cancel the bond upon 30 days' advance written notice to both the producer and the superintendent. Upon notice to the superintendent of cancellation by the surety and failure of the surplus lines producer to procure a satisfactory replacement bond prior to cancellation, the surplus lines producer's authority terminates.
[PL 1997, c. 592, §65 (AMD).]
SECTION HISTORY
PL 1993, c. 153, §17 (NEW). PL 1995, c. 329, §31 (AMD). PL 1997, c. 592, §65 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 21: UNAUTHORIZED INSURERS -- PROHIBITIONS, PROCESS AND ADVERTISING › 24-A §2101. Representing or aiding unauthorized insurer prohibited

§2101. Representing or aiding unauthorized insurer prohibited
1.
No person shall in this State directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact such business in this State, in the solicitation, negotiation, procurement or effectuation of insurance or annuity contracts, or renewal thereof, or forwarding of applications for insurance or annuities, or the dissemination of information as to coverage or rates, or inspection of risks, or fixing of rates, or investigation or adjustment of claims or losses, or collection or forwarding of premiums, or in any other manner represent or assist such an insurer in the transaction of insurance with respect to subjects of insurance resident, located or to be performed in this State.
[PL 1969, c. 132, §1 (NEW).]
2.
This section does not apply to:
A. Matters authorized to be done by the superintendent under the Unauthorized Insurers Process Act, sections 2102 to 2108;   [PL 1973, c. 625, §141 (AMD).]
B. Transactions as to which the insurer is not required to have a certificate of authority pursuant to section 405 (exceptions to certificate of authority requirement);   [PL 1969, c. 132, §1 (NEW).]
C. A licensed adjuster or attorney at law representing such an insurer from time to time in the adjuster's or attorney's professional capacity;   [RR 2021, c. 1, Pt. B, §201 (COR).]
D. Transactions in this State relating to a policy of wet marine and transportation insurance delivered or issued for delivery outside this State;   [PL 1969, c. 132, §1 (NEW).]
E. The employee, compensated on salary only, of a Maine employer who on behalf of the employer assists in the procurement or administration of insurance coverages on the property, risks and insurable interests of the employer; or   [PL 2011, c. 331, §6 (AMD); PL 2011, c. 331, §§16, 17 (AFF).]
F. Transactions outside this State arising from the unsolicited application of the insured, if the transaction is lawful in the jurisdiction in which it occurs and the applicable premium tax has been paid in compliance with Title 36, section 2513.   [PL 2011, c. 331, §7 (NEW); PL 2011, c. 331, §§16, 17 (AFF).]
[RR 2021, c. 1, Pt. B, §201 (COR).]
3.
If the superintendent has reason to believe that any insurer or other person is acting in violation of this section or section 404, the superintendent shall commence proceedings in accordance with sections 12‑A and 404. Section 2105 applies to all process, notices and statements of charges to be served on the unauthorized insurer or insurers.
[PL 1991, c. 298, §6 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1973, c. 625, §141 (AMD). PL 1991, c. 298, §6 (AMD). PL 2011, c. 331, §§6, 7 (AMD). PL 2011, c. 331, §§16, 17 (AFF). RR 2021, c. 1, Pt. B, §201 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 21: UNAUTHORIZED INSURERS -- PROHIBITIONS, PROCESS AND ADVERTISING › 24-A §2102. Purposes as related to Unauthorized Insurers

§2102. Purposes as related to Unauthorized Insurers
The purpose of section 12‑A and sections 2102 to 2108 (Unauthorized Insurers Process Act) is to subject certain insurers to the jurisdiction of the superintendent and the courts of this State in suits and disciplinary proceedings as provided therein, by or on behalf of insureds or beneficiaries under insurance contracts or the superintendent. The Legislature declares its concern that many Maine residents hold insurance policies delivered in this State by unauthorized insurers, other than as to surplus lines coverages written pursuant to chapter 19, thus presenting to such residents the often insuperable obstacle of resort to distant courts for the assertion of legal rights under their policies; and that such insurers may induce residents to purchase insurance through false advertising sent into this State. In furtherance of such state interest, the Legislature herein provides a method of substituted service of process upon such insurers, declares that in so doing it exercises its power to protect Maine residents, to define, for the purposes of this chapter, what constitutes doing business in this State, and also exercises powers and privileges available to the State under Public Law 15, 79th Congress of the United States, chapter 20, 1st Session, S. 340, as amended, which declares that the business of insurance and every person engaged therein are subject to the laws of the several states.   [PL 1991, c. 298, §7 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1973, c. 625, §142 (AMD). PL 1991, c. 298, §7 (AMD).