Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 440 - MAINE WORKERS' COMPENSATION RESIDUAL MECHANISM
Subchapter II - MAINE WORKERS' COMPENSATION RESIDUAL MARKET POOL
Section 031-440-II-11 - Collection and Remittance of Premium to Pool
Current through 2024-38, September 18, 2024
A. Report and Payment requirement. On or before the 15th day of February, May, August, and November of each year, each servicing carrier shall report to the Pool all premium written and remit to the Pool all premium received, retaining that portion of premium equal to its servicing fee, commission payments, and paid losses. Assessments, other than guaranty fund assessments, and premium taxes on all premiums collected shall be paid by the servicing carrier as part of its expense.
B. Limited liability of Pool. The Pool shall not be required to reimburse any servicing carrier if loss of its servicing fee results from its failure to collect premiums owed unless the servicing carrier has made a diligent collection effort in accordance with the service performance standards of this chapter and payment has been approved by the Pool manager.
C. Return Premiums. Servicing carriers shall be promptly reimbursed by the Pool for any return premiums paid to insureds which had previously been remitted to the Pool.
D. Insolvent servicing carrier: subrogation rights. In the event of the insolvency of a servicing carrier, the Pool shall automatically be subrogated to the rights of the servicing carrier to collect further premiums due or to become due on risks assigned to it, and the insured shall be protected in any payment of such premiums made to or upon the order of the Pool. Any premiums received by the insolvent servicing carrier after such insolvency shall be received in trust for the Pool and shall be promptly paid over to the Pool, except that the servicing carrier may retain that part of any servicing fee which has been earned up to the date of receipt. Any premiums so received by the Pool shall be applied to the payment of losses, and an accounting of such premiums shall be made to the insolvent carrier or its legal representatives in connection with any refund.
