Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 400 - REQUIREMENTS RELATING TO AUTHORIZED INSURERS TERMINATING OR MODIFYING AN EXISTING CERTIFICATE OF AUTHORITY (MAINE)
Section 031-400-4 - Public protection provisions of plan

Universal Citation: 02 ME Code Rules ยง 031-400-4

Current through 2024-38, September 18, 2024

Any such plan submitted shall include but not be limited to public protection provisions as follows:

A. Policies in-force at the intended date of withdrawal shall be continued pursuant to terms of the policy(ies) and provisions of applicable cancellation control acts contained in Title 24-A, M.R.S.A.

(1) The Maine Automobile Insurance Cancellation Control Act.

(2) The Maine Property Insurance Cancellation Control Act.

(3) AN ACT Relating to Cancellation and Nonrenewal of Property and Casualty Insurance Contracts.

B. The insurer shall specify the means by which it proposes to assure adequate service and performance on its policy obligations undertaken and yet undischarged. The Superintendent may require for the adequate service to policyholders, agents and claimants that existing service offices shall be continued as necessary.

C. At the discretion of the Superintendent, the insurer may be required to transfer business resident to the State of Maine to acceptable reinsurers.

D. The insurer shall not be eligible to accept surplus lines placements for any type of business comprehended within the plan of withdrawal to avoid the regulatory requirements attendant to business operations pursuant to a certificate of authority.

E. The insurer shall provide such notice of its intent to withdraw as the Superintendent deems adequate under the circumstance to insureds, claimants, agents, brokers and adjusters, prior to its intended date of withdrawal.

F. The insurer shall provide to the Bureau a statement of its outstanding obligations to Maine policyholders, claimants and creditors including but not limited to policy reserves, policy liabilities, unearned premiums and unpaid losses, such to include a provision for incurred but not reported claims, all as of a date not earlier that 30 days prior to filing. The Superintendent may require a security deposit in an amount equal to the sum of these outstanding obligations.

G. The insurer's plan of withdrawal shall contain provisions adequate to assure the timely satisfaction of continuing responsibilities under statute, rule, or any approved plan of operation for:

(1) The Maine Workers' Compensation Residual Market Plan;

(2) The Maine Automobile Insurance Plan; or

(3) Any other residual market facility, including any joint underwriting association or joint reinsurance association; including any predecessor or successor plan or entity. These responsibilities include, without limitation, payment of assessments, fulfillment of assumed or assigned service carrier duties and performance under reinsurance pool agreements.

H. In those cases in which policies remaining in force provide for dividends to be paid, the insurer shall not unfairly discriminate against Maine policyholders in its dividend practices.

I. The insurer shall submit timely reports and financial disclosures deemed necessary and adequate by the Superintendent in the determination of performance under the plan of withdrawal.

J. The insurer shall remain subject to examination by the Bureau of Insurance as deemed necessary by the Superintendent.

K. The insurer shall nominate the Superintendent of Insurance as its agent for service of process within this state regarding undischarged policy obligations.

L. The insurer shall comply with requirements of Title 24-A, Chapter 23, Trade Practices and Frauds, and any other applicable provisions of Title 24-A, M.R.S.A. as long as it has any policies in force in this State.

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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