Insurance Rule Ch. 260 Insurance inspection services -- limitation of liability

By enactment of 14 M.R.S.A. § 167, the Legislature has provided for the limitation of liability in regard to certain insurance inspections. In order for this limitation of liability to be effective, proper notice must be given in the manner prescribed by the Superintendent of Insurance. This regulation sets forth the contents of the notice and the manner in which notice is to be given. Only insurers seeking this exemption are required to comply with the following provisions. Authority

This regulation is authorized by Title 14 M.R.S.A.§ 167 (2).

1. Contents of the Notice

The notice given by an insurer as a condition of qualifying for the exemption from liability for certain inspection services pursuant to the terms of 14 M.R.S.A. § 167 shall contain the following language:

THE FOLLOWING LIMITS OUR LIABILITY

We, the insurance company, our agents, employees, or service contractors, are not liable for damages from injury, death or loss occurring as a result of any act or omission in the furnishing of or the failure to furnish insurance inspection services related to, in connection with or incidental to the issuance or renewal of a policy of property or casualty insurance.

This exemption from liability does not apply:

A. If the injury, loss or death occurred during the actual performance of inspection services and was proximately caused by our negligence or by the negligence of our agents, employees or service contractors;

B. To any inspection services required to be performed under the provisions of a written contract or defined loss prevention program;

C. In any action against us, our agents, employees, or service contractors for damages proximately caused by our acts or omissions which are determined to constitute a crime, actual malice or gross negligence; or

D. If we fail to provide this written notice to the insured whenever a policy is issued or when new policy forms are issued upon renewal.

2. Manner in Which Notice to be Given

In order to comply with the provisions of 14 M.R.S.A. § 167 an insurer must provide notice in the form prescribed by section 1 above whenever the policy is issued or renewed. An insurer is not required to give the notice upon a renewal effected by issuance of a continuation certificate pursuant to 24-A M.R.S.A. § 2421, provided, that the notice was previously given to the insured in accordance with this regulation. The required wording may appear on an insurance binder, on the face of a policy jacket, as a separate endorsement, or within the policy language in a manner reasonably intended to give notice.

This notice requirement applies to any policy outstanding on, and effective on or after January 1, 1982. Pursuant to Title 24-A M.R.S.A. Section 2412, individual insurers must submit the proposed form or endorsement to the Superintendent of Insurance for approval, or this filing requirement may be satisfied on behalf of member or subscriber companies by an authorized rating organization.

History. -- Eff. 1-1-82.

History. -- Statutory Authority.--14 M.R.S.A.

EFFECTIVE DATE (ELECTRONIC CONVERSION): January 14, 1997