Key Takeaways
- The Maine Bureau of Insurance operates within the Department of Professional and Financial Regulation (PFR)
- The Superintendent of Insurance is appointed by the Governor and confirmed by the Legislature
- Maine uses a file-and-use rate system for most property and casualty insurance lines
- The Bureau handles licensing, rate review, market conduct examinations, and consumer complaints
- Title 24-A of the Maine Revised Statutes is the Maine Insurance Code
Maine Bureau of Insurance
The Maine Bureau of Insurance is the state agency responsible for regulating the Property & Casualty insurance industry in Maine. The Bureau operates as part of the Department of Professional and Financial Regulation (PFR) and protects consumers while ensuring a healthy insurance marketplace.
Superintendent of Insurance
The Maine Superintendent of Insurance is:
- Appointed by the Governor of Maine
- Confirmed by the Maine Legislature
- Chief regulator of Maine's insurance industry
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
- Supported by the Bureau of Insurance staff within PFR
Superintendent Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer and company licenses |
| Rate Review | Review and approve P&C insurance rates under file-and-use system |
| Market Conduct | Examine insurer business practices and compliance |
| Enforcement | Investigate and prosecute violations of insurance law |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting Maine insurance law |
| Financial Oversight | Monitor insurer financial condition and solvency |
Exam Tip: The Maine Superintendent is appointed by the Governor and confirmed by the Legislature, unlike elected insurance commissioners in some states like Oklahoma.
Department of Professional and Financial Regulation Structure
The Maine Bureau of Insurance operates within PFR alongside other regulatory agencies:
PFR Organization
Department of Professional and Financial Regulation
- Office of Securities (regulates investment advisers and securities)
- Bureau of Consumer Credit Protection
- Bureau of Financial Institutions
- Bureau of Insurance ← P&C Insurance regulation
- Office of Professional and Occupational Regulation
The Commissioner of PFR oversees all bureaus, but the Superintendent of Insurance has specific authority over insurance matters.
Rate Regulation System
Maine uses a file-and-use system for most P&C insurance:
File-and-Use Process
| Step | Description | Timeline |
|---|---|---|
| 1. Insurer Files Rates | Submit rate filing with actuarial justification | Filed electronically |
| 2. Immediate Use | Rates effective immediately or on future date specified | Day of filing |
| 3. Bureau Review | Superintendent reviews filing for compliance | 30-60 days |
| 4. Approval or Disapproval | Superintendent may approve or disapprove rates | After review period |
| 5. Insurer Response | If disapproved, insurer modifies or contests decision | As needed |
Rate Standards
Under Maine law (Title 24-A), insurance rates must be:
- Not Excessive: Rates cannot be unreasonably high
- Not Inadequate: Rates must be sufficient to maintain insurer solvency
- Not Unfairly Discriminatory: Similar risks must be treated similarly
Key Point: Maine allows insurers to implement rates immediately after filing, but the Superintendent retains authority to disapprove rates after review.
Rate Regulation by Line
| Insurance Line | Rate System | Special Notes |
|---|---|---|
| Personal Auto | File-and-use | Superintendent actively reviews |
| Homeowners | File-and-use | Coastal rates monitored closely |
| Commercial Property | File-and-use | Large commercial may be negotiated |
| Workers' Compensation | Administered pricing | Separate rating system |
Exam Tip: File-and-use means insurers can use rates immediately after filing. This differs from prior approval (can't use until approved) and use-and-file (use first, file later).
Maine Insurance Law
Title 24-A: Maine Insurance Code
Maine insurance regulation is codified in Title 24-A of the Maine Revised Statutes (MRS), which covers:
-
Insurer Licensing and Solvency (Chapters 1-5)
- Requirements for insurers to operate in Maine
- Financial standards and reserve requirements
- Annual financial examinations and reporting
- Certificate of authority requirements
-
Producer Licensing (Chapter 16)
- Producer license requirements and procedures
- Continuing education mandates (24 hours/2 years)
- Prohibited practices and penalties
- Appointment requirements
-
Policy Requirements (Various chapters by line)
- Mandatory policy provisions
- Required disclosures
- Consumer protections
- Standard policy forms
-
Rate Regulation (Chapter 23)
- Rate filing requirements
- Prohibitions on unfair discrimination
- Rate review procedures
- Rating factors
-
Consumer Protections (Chapter 24)
- Cancellation and non-renewal restrictions
- Claims handling requirements
- Unfair trade practices prohibitions
- Privacy protections
Key Maine Statutes
| Statute | Topic |
|---|---|
| 24-A MRS § 201 | Superintendent appointment and powers |
| 24-A MRS § 1420 | Producer licensing requirements |
| 24-A MRS § 2436 | Unfair claim settlement practices |
| 24-A MRS § 2159 | Auto insurance mandatory coverage |
| 24-A MRS § 4501 | Maine Insurance Guaranty Association |
Bureau Organization
The Maine Bureau of Insurance operates through several functional areas:
Bureau Divisions
| Division | Responsibilities |
|---|---|
| Licensing Division | Producer and company licensing, CE approval, appointments |
| Consumer Assistance | Handle consumer complaints and inquiries, provide education |
| Financial Regulation | Monitor insurer financial condition, conduct financial exams |
| Market Conduct | Examine business practices, enforce compliance, review rates |
| Legal Services | Enforcement actions, hearings, legal interpretation |
Consumer Protection Functions
Consumer Assistance
The Bureau provides consumer protection through:
- Consumer Hotline: (207) 624-8475 (business hours)
- Toll-Free in Maine: 1-800-300-5000
- Consumer Services: Investigates complaints against insurers and producers
- Educational Resources: Consumer guides, brochures, and online information
- Complaint Resolution: Mediates disputes between consumers and insurers
- Fraud Investigation: Works with law enforcement on insurance fraud cases
Complaint Process
- Consumer Files Complaint: Online at maine.gov/pfr/insurance, phone, or mail
- Bureau Review: Bureau reviews complaint and determines jurisdiction
- Insurer Contact: Bureau contacts insurer for response
- Investigation: Bureau investigates if warranted
- Resolution: Bureau works to resolve dispute or takes enforcement action
- Follow-up: Bureau tracks outcomes and consumer satisfaction
Common Consumer Complaints
| Complaint Type | Examples |
|---|---|
| Claims Handling | Delays, denials, inadequate settlements |
| Policy Issues | Unexpected cancellations, non-renewals, coverage disputes |
| Premium Charges | Unexplained rate increases, billing errors |
| Producer Conduct | Misrepresentation, churning, unauthorized coverage changes |
| Coverage Disputes | Claim denials, policy interpretation disagreements |
Exam Tip: Maine law requires insurers to respond to Bureau inquiries about complaints within a specified timeframe, typically 15-30 days.
How is the Maine Superintendent of Insurance selected?
What rate filing system does Maine use for most Property & Casualty insurance?