Commercial Auto

REVIEW REQUIREMENTS	REFERENCE	DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS	LOCATION OF STANDARD IN FILING
LINE OF BUSINESS:	Auto Liability	LINE(S) OF INSURANCE	CODES
	Auto Physical Damage	Commercial Auto	20.0000
		Business Auto	20.0001
Code:	20.0000	Garage	20.0002
		Other	20.0003

IF CHECKLIST IS NOT APPLICABLE, PLEASE EXPLAIN:
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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
COVER LETTER AND EXPLANATORY MEMORANDUM		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
FILING SUBMISSION	Title 24-A § 2412 Filings, approval of forms Title 24-A § 2304-A Rate filings	Form filing requirements. Rate filing requirements.
EFFECTIVE DATE WORDING		Include proposed effective date on SERFF General Information. Policies effective at 12:01 AM Standard Time.
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	Auto Liability Auto Physical Damage	Must have requisite certificate of authority to transact business before submitting rate/rule or form filing
NO FILE OR FILING EXEMPTIONS	Title 24-A - §2412-A. Large commercial contracts	Policy forms and rates/rules pertaining to large commercial risks exempt from filing — see statute for criteria and definition of large commercial risk.
SIDE BY SIDE COMPARISON		Please provide a marked-up copy of the existing rate/rule page(s) or forms being revised highlighting all changes by underlining additions and striking through deletions
THIRD PARTY FILERS AUTHORITY	Title 24-A - §2412. Filing, approval of forms Title 24-A - §2304-A. Rate filings	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.
AGGREGATE LIMITS	Title 29-A - §1605. Proof of financial responsibility Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer	Minimum bodily injury, property damage, medical payments and uninsured/underinsured motorists for private passenger auto — refer to Motor Vehicle Code for minimum limits for school buses, etc.
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	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…).
ARBITRATION	Title 24-A § 2433 Jurisdiction of courts, limitation of actions	Binding arbitration is not permitted.
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).
CALCULATION OF UNEARNED/RETURN PREMIUM		Considered part of rating plan.
CANCELLATION & NON-RENEWAL	Title 24-A - §2908. Cancellation and nonrenewal	Maine amendatory endorsement must include statutory grounds for mid-term cancellation — refer to subsection 2 of statute; a post-office certificate of mailing to the named insured at his last known address is conclusive proof of receipt of notice on the 3rd calendar day after mailing.
CONTENT OF POLICIES	Title 24-A - §2901. Contracts subject to general provisions Title 24-A - Chapter 39, CASUALTY INSURANCE CONTRACTS Title 24-A - Chapter 27, THE INSURANCE CONTRACT Title 24-A - MAINE INSURANCE CODE	Casualty contracts are subject to provisions of Chapter 30 as well as Chapter 27 & other applicable provisions of Title 24-A (the Maine Insurance Code)
CREDIT SCORING NOTICE	Title 24-A - §2169-B. Use of consumer reports in insurance underwriting
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 association 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.)
DRIVER EXCLUSIONS & LIMITATIONS		Are permitted in commercial lines
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	Commercial Auto is not eligible under the property and casualty law.
GUEST PASSENGER LIABILITY	Title 24-A - §2902-B. Motorcycle passenger exclusion	Motorcycle passenger exclusion not permitted unless insurer notifies Bureau of Insurance and each licensed producer and separate exclusionary endorsement filed and approved
LIMITS	Title 29-A - §1605. Proof of financial responsibility Title 29-A - §1605-A. Medical payments Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer	Minimum limits found in applicable sections of Motor Vehicle Code; UM limits must be same as BI Liability unless expressly request lower limits, but must be no less than minimum limits required for BI in Title 29-A
LOSS PAYEE	Title 24-A - §2908 Cancellation and Non Renewal Bulletin 372	Where physical damage coverage is provided notice must be given to any party named in a loss payable clause.
MEDICAL PAYMENTS	Title 29-A - §1605-A. Medical payments	Minimum limit required by Motor Vehicle Code effective 1-1-2008 is $2,000 per person.
MEDICAL PAYMENTS SUBROGATION	Title 24-A §2910-A. Subrogation; medical payments coverage	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 provides for subrogation or priority over the insured when an insured's awarded or settled damages exceed $20,000; B. The provision requires the written approval of the insured; C. 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 D. The provision is approved by the superintendent.
NOTICE OF CANCELLATION	Title 24-A § 2908. Cancellation and nonrenewal Insurance - Bulletin 201	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.
NOTICE OF NON-RENEWAL	Title 24-A § 2908. Cancellation and nonrenewal Insurance - Bulletin 201	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 § 2908. Cancellation and nonrenewal
PAYMENT OF LOSS TIME PERIOD	Title 24-A §2436. Interest on overdue payments	Payment within thirty days and interest on overdue payments of 1.5% per month
PERMISSABLE REASONS FOR CANCELLATION	Title 24-A § 2908. Cancellation and nonrenewal	See statute for permissible grounds.
PERMISSABLE REASONS FOR NON-RENEWAL	Title 24-A § 2908. Cancellation and nonrenewal
POST-JUDGMENT INTEREST	Title 14 §1602-C. Interest after judgment Bulletin 353	Maine statutory law provides for the payment of post-judgment interest and case law has held that an insurer must pay post-judgment interest as a supplemental payment without regard to the policy terms (i.e. policy limit, sub-limits, exclusions, deductibles, retentions, etc…).
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. The Superintendent must act upon a filing within 30 days unless the filer requests an extension. Filings not acted upon pursuant to these statutes 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 Bulletin 233	Sales inducement rebates prohibited unless contained in policy
SUIT	Title 24-A - §2433. Jurisdiction of courts, limitation of actions	Maine courts must have jurisdiction. Insured must be given two years to bring suit against insurer.
UNINSURED/UNDERINSURED MOTORISTS	Title 24-A - §2902. Uninsured vehicle coverage; insolvency of insurer Title 29-A - §1605. Proof of financial responsibility	Mandatory bodily injury coverage in amounts equal to BI liability limits unless expressly reject higher UM limits in writing, but at a minimum most be no lower than minimum financial responsibility limit in Motor Vehicle Code (Title 29-A)
VICARIOUS LIABILITY	Title 14 - §304. Liability of parents or legal guardians for damage by children	Parent or Legal Guardian are 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 on applications are deemed to be representations, not warranties.
RATE, RULE, RATING PLAN, CLASSIFICATION, AND TERRITORY FILING REQUIREMENTS
"A" RATED RISKS	Title 24-A - §2304-A. Rate filings	“a” rates and ranges must be filed along with any rates designated as “refer to company” or similar phrasing.
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
BILLING FEES (INSTALLMENTS, LATE, NSF & REINSTATEMENT)	Title 24-A - §2304-A. Rate filings	Considered 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.
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 FACTORS TRENDING	Title 24-A - §2303. Making of rates	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 - §2303. Making of rates Title 24-A - §2304-A. Rate filings	Surcharges and credits must be filed and supported
EXPENSE MODIFICATION PLAN		Considered part of rating plan.
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
EXPERIENCE RATING	Title 24-A - §2304-A. Rate filings	Considered part of rating plan
GROUP POLICIES	Title 24-A - §2951. Group property and casualty insurance	Commercial Auto is NOT among permitted products
JUDGMENT	Title 24-A - §2303. Making of rates	Rate and loss costs multiplier calculation should reflect judgment of insurer.
LARGE DEDUCTIBLE		Considered 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		Considered part of rating plan
Multi-tier		Considered part of rating plan
Payment Plans		Considered part of rating plan
Premiums		Considered 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 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 income
RATE RANGES	Title 24-A - §2304-A. Rate filings	Considered 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 filings 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 filings and file loss costs multiplier
RETROSPECTIVE RATING		Considered part of rating plan.
RETURN ON EQUITY DOCUMENT - 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 premium, class rate, rating schedule or rating plan, every other rating rule, and every modification to the foregoing should be filed and supported.
RISK CLASSIFICATION	Title 24-A - §2303. Making of rates	Risks may be grouped by classifications for the establishment of rates and minimum premiums.
SCHEDULE RATING (AKA UNDERWRITING JUDGMENT)		Considered part of rating plan and a maximum aggregate credit/debit permitted is 40%
SERVICE CHARGES		Considered part of rating plan.
SMALL DEDUCTIBLES		Considered part of rating plan.
SURCHARGES		Considered part of rating plan.
WRAP-UP RATING		Considered part of rating plan.

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