Current through 2024-38, September 18, 2024
In addition to the requirements of Title 24-A M.R.S.A.
Chapter 27, all legal services insurance policies and certificates must meet
the following requirements:
A.
Policies and certificates must indicate prominently the name of the insurer and
full address of its principal place of business.
B. Policies must contain a detailed list and
description of the legal services provided or the legal matters for which
expenses are to be reimbursed and the amount of reimbursement. Covered services
may include handling of the following matters:
(1) Prenuptial Agreement, Annulment,
Separation, Divorce;
(2) Adoption,
Guardianship, Conservatorship;
(3)
Preventive Legal Service, Document Review, Letter-writing;
(4) Employment Contract;
(5) Purchase & Sale Contract, Real Estate
Transactions;
(6) Defense of Civil
Suit, Defense of Debt Collection;
(7) Eviction (if tenant);
(8) Wills, Estate Settlements;
(9) Name Changes; and
(10) Other services may be included upon
demonstration by the insurer satisfactory to the Superintendent that the
services covered are a proper subject of insurance.
C. Policies must contain the following
conditions:
(1) With respect to services
other than basic legal advice rendered by telephone or mail as described in
Title
24-A M.R.S.A.
§2883, the certificateholder may
exercise freedom in the selection of an attorney, provided that the latter is
properly admitted to the bar of the applicable jurisdiction.
(2) Coverage is to be provided for costs
incurred during the policy term. Coverage of services ongoing at the time
coverage terminates is to be provided for an additional 90 days.
(3) The certificate holder shall not be
indemnified for a greater sum than that of costs actually incurred.
(4) All periods of insurance shall begin and
end of 12:01 a.m. standard time at the place of issuance.
(5) Cancellation may be initiated by either
the insurer or the policyholder by providing 30-days written notice to the
other for reasons other than non-payment of premium. Any return premium shall
be on a pro-rata basis.
(6) If the
insurer initiates cancellation for non-payment of premium, a grace period of
not less than 10 days shall be provided. Policies may contain the following
exclusions:
D. Policies
may contain the following exclusions:
(1)
Services received prior to becoming insured;
(2) Defense costs already honored under a
general, automobile or employer's liability contract, or any professional
liability contract; where both policies apply, the group legal services
contract shall be deemed excess;
(3) Services for which no charge would have
been made, but for the existence of insurance;
(4) Defense of suits filed in conjunction
with professional liability or activities related to business pursuits or
profit-making outside ventures, fiduciary responsibility of the insured, or his
or her serving as a director or officer of either a for-profit or
not-for-profit organization;
(5)
Reimbursements prohibited by
29 U.S.C. §
186(C) (8) (1978 Amendments
to Taft-Hartley Act); and
(6) Other
exclusions approved by the Superintendent.
E. Certificates issued under group policies
may summarize the terms of the master contract but must contain a full and
clear statement of the benefits, exclusions and limitations.
