Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 231 - CERTIFICATES OF AUTHORITY FOR INSURANCE COMPANIES
Section 031-231-4 - Newly Formed Domestic Insurers

Universal Citation: 02 ME Code Rules ยง 031-231-4

Current through 2024-38, September 18, 2024

Any business entity domiciled in Maine that desires to commence business as an insurer shall submit an application for a Certificate of Authority on the most current Uniform Certificate of Authority Primary Application form, or its successor form, published by the National Association of Insurance Commissioners or its successor organization, and shall provide all information requested therein and such additional information as the Superintendent may request in the course of reviewing the application, sufficient to demonstrate compliance with the following requirements, except to the extent that particular requirements may be waived or modified by the Superintendent upon a finding that they are not applicable to the circumstances of the application.

A. Corporate Organization

The Applicant must comply, as applicable, with the organizational requirements of Chapter 47, 51, 53, or 83 of the Maine Insurance Code, Title 24-AM.R.S.A. If a mutual or reciprocal insurer, the Applicant must demonstrate that it has an adequate initial membership base.

B. Business Name

The Applicant shall not use a business name deceptively similar to that of any insurer currently holding a valid Certificate of Authority. No application will be entertained that proposes to use a name that has been reserved by another business entity with the Superintendent or the Maine Secretary of State, until the period of the other business's reservation has expired or the reserved name has been withdrawn.

C. Deposit Requirements

The Applicant must deposit qualifying assets with the Treasurer of State with a minimum fair market value of $100,000 as security for all its policyholders, in compliance with the requirements of 24-AM.R.S.A. Chapter 15 (§§ 1251et seq.).

D. Capital and Surplus

(1) The Applicant must possess initial capital and/or surplus in an amount at least equal to the minimum amount prescribed in 24-AM.R.S.A. §410(1) for all lines of insurance the Applicant transacts or seeks authorization to transact in Maine or elsewhere. Initial capital and/or surplus shall be calculated in the same manner as provided in Subsection 3(D). The initial free surplus requirement may not be satisfied through surplus notes or other encumbered assets.

(2) The Applicant's initial surplus must also be sufficient to demonstrate to the satisfaction of the Superintendent that the Applicant will be reasonably assured of maintaining adequate risk-based capital to support the business the Applicant plans to write, at a level consistent with sound management and no less than the company action level.

E. Business Plan

The Applicant must provide proof that it will be able to fulfill its obligations in a sound and responsible manner, in this State and in all other jurisdictions in which the Applicant plans to operate. Factors to be considered by the Superintendent shall include, without limitation:

(1) The soundness of the Applicant's business plan;

(2) The adequacy of the resources that have been committed for both expected and stress scenarios, including capital, reinsurance, personnel, and infrastructure;

(3) The existence of any financial guaranties or other mechanisms for access to additional capital in the event that it is needed;

(4) The experience and fitness of the Applicant's managers and owners; and

(5) The Applicant's compliance with any additional criteria that may be developed by the National Association of Insurance Commissioners for evaluating insurance start-ups.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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