02-031 C.M.R. ch. 960, § 4 - Standards for Hurricane Deductibles

An insurer electing to use a hurricane deductible must comply with this Rule and all relevant provisions of M.R.S. Title 24-A. This Rule sets the minimum standards that an insurer must meet with respect to a hurricane deductible.

A. A hurricane deductible may:

(1) Be applied only during the period that starts when the National WeatherService issues a hurricane warning for a forecast zone that includes any part of the municipality in which the insured property is located and ends twenty-four (24) hours after the National Weather Service terminates the last hurricane warning for that forecast zone;

(2) Apply whether or not hurricane force winds reach the property insured under a policy;

(3) Apply to all direct and consequential losses caused by or resulting from wind, precipitation, or wind-driven objects; and

(4) Be expressed as either a specific dollar amount or a percentage of the policy's property coverage.

B. When a hurricane deductible applies to a covered loss, the insurer must bear the covered loss that exceeds the hurricane deductible, subject to the applicable policy terms and limits.

C. If a policy includes a hurricane deductible and any other deductible, including without limitation a wind-storm or named storm deductible, the insurer may apply only the hurricane deductible to losses within the scope of that deductible.

Notes

02-031 C.M.R. ch. 960, § 4