Maine Laws and Rules Common to Property and Casualty Insurance

Superintendent of Insurance in Maine - answer-Eric Cioppa Superintendent of Insurance Definition and Broad Powers - answer-Head of the Bureau of Insurance, and has jurisdiction over all banking and insurance business in Maine. Appointed by the governor Remains in officer for 5 years, unless removed by impeachment Enforces the provisions of the insurance code. The superintendent has the powers and authority expressly vested by or reasonably implied from this title and has additional rights, powers, and duties that may be provided by other laws. Has authority to examine the affairs, transactions, accounts, records, and assets of all insurers authorized to conduct insurance business in Maine and determine whether or not the insurers are: Fulfilling their contracted obligations, complying with the law, and in sound financial condition. The superintendent must examine insurance companies at least once every three to five years and can conduct investigations as often as necessary. Must conduct exam of all insurers that apply for certificates of authority to transact insurance business in Maine Domestic and foreign health carriers will be subject to a market conduct exam at least once every five years. Superintendent of Insurance Notice and hearing - answer-The superintendent must hold a hearing if required by a provision of the Maine Insurance Title or upon written application for a hearing by anyone who is dissatisfied with an act or report or the Superintendent. Hearing applications must be filed no later than 30 days after the person should have known of the act or report. If the superintendent believes the application was made in good faith, they can hold a hearing within 30 days after the application was filed. Superintendent must give written notice of hearing 14 days in advance. All hearings public, unless private hearing is in publics best interest. Any party involved in hearing may appeal within 30 days of receiving notice. Indirect parties have 40 days to appeal. Civil Penalties - answer-Individuals: Civil Penalty between between $500 and $5,000 for each violation Corporations: between $2,000 and $15,000 for violations Authorized - answer-Companies that have obtained a certificate of authority are also known as authorized insurers. All insurers must hold a certificate of authority issued by the Superintendent of Insurance. Unauthorized - answer-Insurers that have not been issued a certificate of authority are referred to as unauthorized insurers. No foreign or alien insurer will be authorized to transact a kind of insurance in Maine unless it is authorized or qualified to transact the same lines of insurance in its domiciled state or country. Approved unauthorized insurers may still transact business in Maine, but may do so only through licensed surplus lines. Certificate of Authority - answer-Issued by the Superintendent of Insurance To qualify for authority, an insurer must possess and maintain an amount of paid-in capital if a stock company, or surplus if a mutual or reciprocal insurer, as required by the superintendent. This amount varies based on the type of business written by the company. Surplus Lines Law - answer-2002-A: Following lines must be procured from authorized insurers and not eligible for export from surplus lines market: Life Insurance Health Insurance Employee Benefit Excess Insurance Surplus lines law may not be used to place reinsurance. 2004: Conditions for procurement of Coverage When insurance coverage cannot be obtained int he standard market from authorized insurance companies, it may be obtained from unauthorized insurers in the following conditions: -Coverage is placed with a licensed surplus lines producer. -Coverage is necessary for the adequate protection of a risk located in the state -Diligent effort has been made to obtain coverage from an authorized insurer and it is not available. 2007: Eligible surplus lines insurers A producer may not knowingly place insurance with an unauthorized insurer that is in an unsound financial condition. Producer is required to place business only with unauthorized list of insurers published by superintendent. Requirements for insurer: -Is authorized to write insurance in its home state -has evidence of good repute and financial integrity -maintains capital and surplus, or its equivalent under the laws of its state of domicile in an am