Sec. A-1. 24-A MRSA §2304-A, sub-§1, as repealed and replaced by PL 1991, c. 377, §10, is amended to read:
1. Every insurer shall file with the superintendent, except as to inland marine risks, which by general custom of the business are not written according to manual rates or rating plans, every manual rate, minimum premium, class rate, rating schedule or rating plan and every other rating rule, and every modification of any of the foregoing which that it proposes to use. Every such The filing must state the effective date of the filing, and indicate the character and extent of the coverage contemplated. Every such The filing must be made not less than 30 days in advance of the stated effective date unless that 30-day requirement is waived by the superintendent. The effective date may be suspended by the superintendent for a period of time not to exceed 60 days, except that the effective date for filings made electronically may not be suspended.
Sec. A-2. 24-A MRSA §2412, sub-§2, as amended by PL 1973, c. 585, §12, is further amended to read:
2. Every such filing shall must be made not less than 30 days in advance of any such delivery. At the expiration of such the 30 days, the form so filed shall be is deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the superintendent. Approval of any such the form by the superintendent shall constitute constitutes a waiver of any unexpired portion of such the waiting period. The superintendent may extend by not more than an additional 30 days the period within which he the superintendent may so affirmatively approve or disapprove any such form, by giving notice to the insurer of such the extension before expiration of the initial 30 days 30-day period, except that the effective date of a filing made electronically for a coverage under a health, life or annuity product may not be extended. At the expiration of any such the period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form shall be is deemed approved. The superintendent may at any time, after hearing and for cause shown, withdraw any such approval.
Sec. A-3. 24-A MRSA §3049, sub-§3, as enacted by PL 1973, c. 239, is amended to read:
3. Discovery of fraud or material misrepresentation by either any one of the following:
A. The insured or his the insured's representative in obtaining the insurance; or
B. The named insured in pursuing a claim under the policy;
Sec. A-4. 24-A MRSA §3049, sub-§4, as enacted by PL 1973, c. 239, is repealed and the following enacted in its place:
4. Discovery of either:
A. Negligent acts or omissions by the insured substantially increasing any of the hazards insured against; or
B. A failure to disclose a material fact in relation to the application for insurance that would, if coverage is effectuated without knowledge by the insurer, substantially alter the terms of the policy;
Sec. A-5. 24-A MRSA §3049, sub-§5, as enacted by PL 1973, c. 239, is amended to read:
5. Physical changes in the insured property which that result in the property becoming uninsurable.;
Sec. A-6. 24-A MRSA §3049, sub-§§6 to 10 are enacted to read:
6. The insured property is vacant and custodial care is not maintained on the property;
7. The presence of a trampoline on the premises if the insured is notified that the policy will be cancelled if the trampoline is not removed and the trampoline, after notice, remains on the property 30 or more days after the date of notice;
8. The presence of a swimming pool upon the insured property that is not fenced in, in accordance with the standards established in Title 22, section 1631, if the pool remains in noncompliance with those standards for 30 days after notice by the insurer of the defective condition and intent to cancel the policy;
9. A loss occasioned by a dog bite, unless, after notice of cancellation or nonrenewal is received, the insured removes the dog; or
10. Failure to comply with reasonable loss control recommendations within 90 days after notice from the insurer.
Sec. A-7. 24-A MRSA §3049, 2nd ¶, as amended by PL 1979, c. 663, §§150 and 151, is further amended to read:
This section shall does not apply to any policy or coverage which that has been in effect less than 60 90 days at the time notice of cancellation is received by the named insured, or 90 120 days in the case of residential property which that is expected to be continuously unoccupied for 3 months in any 12-month period and which that is other than the insured's primary residence, unless it is a renewal policy. An insured shall does not have the right to a hearing before the Superintendent of Insurance for the purpose of contesting cancellation of a new policy that has been in force less than 60 90 days or 90 120 days in the case of residential property other than the insured's primary residence which that is expected to be continuously unoccupied for 3 months in any 12-month period.
Sec. A-8. 24-A MRSA §3051, as amended by PL 1979, c. 347, §12, is further amended to read:
No An insurer shall may not fail to renew a policy except by notice to the insured as provided in this subchapter. A notice of intention not to renew shall is not be effective unless received by the named insured at least 30 days prior to the expiration date of the policy. A post-office department post office certificate of mailing to the named insured at his the insured's last known address shall be is conclusive proof of receipt on the 3rd calendar day after mailing. The reason shall must accompany the notice of intent not to renew, together with notification of the right to apply for a hearing before the Superintendent of Insurance within 30 days as provided.
The reason or reasons for the intended nonrenewal action shall must accompany the notice of intent not to renew and the reason or reasons shall must be explicit. Explanations such as "underwriting reasons," "underwriting experience," "loss record," "location of risk," "credit report" and similar insurance terms are not by themselves acceptable explanations of an insurer's intended nonrenewal of a policy insuring property of the kind defined in section 3048. The reason for nonrenewal shall must be a good faith reason rationally and related to the insurability of the property or a ground for cancellation pursuant to section 3049.
This section shall does not apply:
1. If the insurer has manifested its willingness to renew; or
2. If the insured fails to pay any premium due or any advance premium required by the insurer for renewal.
Sec. A-9. 24-A MRSA §3054, as amended by PL 1989, c. 172, §8, is further amended to read:
§3054. Hearing before Superintendent of Insurance
Any A named insured who has received a statement of reason for cancellation, or of reason for an insurer's intent not to renew a policy, may, within 30 days of the receipt of a statement of reason, request a hearing before the Superintendent of Insurance. The purpose of this hearing shall be is limited to establishing the existence of the proof or evidence used by the insurer in its reason for cancellation or intent not to renew. The burden of proof of the reason for cancellation or intent not to renew shall be upon is on the insurer. If an insurer's reason for nonrenewal is not based on a ground for cancellation permitted under section 3049, the insurer must provide proof or evidence that the reason for nonrenewal is a good faith reason and related to the insurability of the property. A statement from the insurer that the risk does not meet the insurer's underwriting guidelines alone is not considered sufficient proof or evidence. The superintendent shall adopt rules for carrying out this section. The superintendent shall have the authority to may order the policy to continue in effect both pending and, if the superintendent finds in favor of the insured, subsequent to a hearing. If the superintendent finds in favor of the insurer at a hearing, the superintendent may order the policy to remain in force for 14 days to allow the insured to obtain other coverage.
Sec. A-10. 24-A MRSA §§3057, 3058 and 3059 are enacted to read:
§3057. Actions related to age of dwelling prohibited
An insurance company authorized to transact business in this State may not cancel or refuse to issue or renew a property insurance policy subject to this subchapter solely on the basis of the age of the dwelling and without consideration of the current condition of the property.
§3058. Refusal based on previous owner's losses
An insurance company authorized to transact business in this State may not refuse to issue a property insurance policy subject to this subchapter for the sole reason that a previous owner of the property submitted claims for losses to the property.
§3059. Insurer valuation of property; increase in premium; notice
1. Increase in valuation. If an insurer determines that the stated insured value of a property covered by a policy subject to this subchapter should be increased to depict more accurately its current value and the increase in valuation will result in an increase in premium for the policy, then the increase in the stated insured value and the corresponding increase in premium may be implemented only at the time of renewal.
2. Notice. If an insurer increases the stated insured value in accordance with subsection 1, then the insurer must provide notice to the named insured on the policy at least 30 days prior to the effective date of the renewal policy stating the reason for the increase in premium and the amount of premium increase associated with the increase in valuation. The notice also must state that upon written request by the named insured the insurer will disclose the specific reasons and specific property characteristics that contributed to the resulting increase in stated value.
3. Exemptions. This section does not apply to routinely scheduled increases in valuation under the policy based on inflation or to increases in the stated insured value of a property agreed to by the insured.
Sec. A-11. 39-A MRSA §403, sub-§4-A, as enacted by PL 2003, c. 315, §2, is amended by amending the first paragraph to read:
4-A. Group self-insurance reinsurance account. As an alternative to obtaining a reinsurance contract providing coverage against losses arising out of one occurrence, a group self-insurer may participate in a group self-insurance reinsurance account, referred to in this subsection as "an account," as provided in this subsection. More than one account may be established pursuant to this subsection. Each An account established pursuant to this subsection is an independent entity and may be established as either an independent private entity or an instrumentality of the State, but the debts and liabilities of an account established as an instrumentality of the State are not debts and liabilities of the State. An account established as an instrumentality of the State within 24 months of its formation, with the approval of the superintendent, may transfer all of its assets and liabilities into an account established as an independent private entity.
Sec. A-12. 39-A MRSA §403, sub-§4-A, ¶¶I and K, as enacted by PL 2003, c. 315, §2, are amended to read:
I. Assets of an account's fund may be used exclusively for payment of expenses of the account and payment of claims against the account and for no other purpose, except that an account established as an independent private entity pursuant to this subsection may issue such dividends to its members as are approved by the superintendent.
K. In the event of dissolution of an account established as an instrumentality of the State pursuant to this subsection, all assets remaining after the satisfaction of all outstanding claims must be distributed to the Treasurer of State to be included in the Maine Self-Insurance Guarantee Association.
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