02-031 C.M.R. ch. 960, § 5 - Notice of Hurricane Deductible

A. An insurer electing to use a hurricane deductible shall notify the named insured in writing that a hurricane deductible applies to the policy. The hurricane deductible notice must comply with this section.

B. The notice shall accompany the issuance of each new policy to which a hurricane deductible applies and each renewal of a policy to which a hurricane deductible applies.

C. The notice must appear on the policy declarations page and contain the following statement or a substantially similar statement:

"$[amount]" deductible applies to losses under this policy's property coverage, unless the losses are hurricane-related. The deductible for all hurricane-related losses is $[amount] .A deductible is the part of a loss that you must bear.

"$[amount]" shall be replaced with "[amount] percent" for any deductible calculated as a percentage of the policy's property coverage.

D. If an insurer uses a notice in lieu of the notice specified in Section 5(C) above, the notice must comply with the Insurance Policy Language Simplification Act, 24-A M.R.S. §§2438 - 2445.

Notes

02-031 C.M.R. ch. 960, § 5