Maine Filing Guide

CRITICAL DILIGENT EFFORT: Maine has the most rigid diligent search requirements in the United States. Per Bureau of Insurance Bulletin 457, "a producer may not place a risk in the surplus lines market if the desired coverage exists in the admitted market." This requires confirmation of TOTAL MARKET UNAVAILABILITY, not just three declinations. The test is whether admitted coverage is available to the insured, not to a particular producer. MANDATORY ELECTRONIC FILING: Beginning 2025, MRS Rule 104 requires Form INS-7 to be filed electronically via the Maine Tax Portal at revenue.maine.gov. MANDATORY ELECTRONIC PAYMENT: MRS Rule 102 requires taxpayers with combined annual Maine tax liability of $10,000 or more to pay all Maine taxes electronically. NEW CONSUMER NOTICE REQUIREMENT (Effective September 24, 2025): Per L.D. 1837 (Public Law 2025, Chapter 348) and Me. Rev. Stat. Ann. tit. 24-A §2009: - Consumer notice must be printed in 16-POINT TYPE - Must be on a SEPARATE DOCUMENT affixed to application - Applicant must SIGN AND DATE acknowledgment copy - Surplus lines licensee must retain signed notice for 5 YEARS post-policy expiration - Copy must accompany policy delivered to insured as separate document - Required language: "A nonadmitted or surplus lines insurer is issuing your policy" and "guaranty funds will not pay your claims" if insolvency occurs REQUIRED POLICY STAMP: Every insurance contract must have stamped upon it, bearing the producer name: "This insurance contract is issued pursuant to the Maine Insurance Laws by an insurer neither licensed by nor under the jurisdiction of the Maine Bureau of Insurance." NO STAMPING FEE: Maine does NOT have a stamping office or stamping fees (unlike many other states). TAX CALCULATION: 3% of the difference between gross premiums and return premiums (minus dividends) Applied retroactively to January 1, 2023 ELIGIBLE INSURER LIST: Maine maintains a list of eligible surplus lines insurers. All surplus lines insurers must be on this list. List available at: https://www.pfr.maine.gov/almsonline/almsquery/SearchCompany.aspx INSURER ELIGIBILITY: - Foreign Insurers: $15M capital and surplus required ($4.5M minimum with Commissioner waiver possible) - Alien Insurers: Must be on NAIC Quarterly Listing of Alien Insurers - Commissioner may waive minimum capital/surplus after considering quality of management, parent company capital, underwriting trends, market availability, and company reputation PROHIBITED COVERAGES: Cannot be placed in surplus lines: - Life insurance - Health insurance (except disability insurance) - Employee benefit excess (stop-loss) insurance - Reinsurance - Workers compensation insurance - Motor vehicle insurance (generally prohibited due to assigned risk market availability) TAX EXEMPTIONS (No Diligent Search Required): - Wet marine and transportation insurance - Insurance on subjects located, resident, or to be performed wholly outside Maine - Vehicles or aircraft owned and principally garaged outside Maine - Railroad operations in interstate commerce and their property - Aircraft owned/operated by manufacturers or in commercial interstate flight, or cargo liability (except workers comp) LARGE COMMERCIAL POLICYHOLDER: Per Me. Rev. Stat. Ann. tit. 24-A, § 2412-A, contracts issued to large commercial policyholders are exempt from diligent search requirement. RECORD RETENTION: All surplus lines records must be retained for at least 5 YEARS and be accessible to the State Tax Assessor for at least 6 YEARS. INTEREST AND PENALTIES (2025): - Interest rate: 10% compounded monthly - Late filing penalty: Greater of $25 or 10% of tax due (or 25% if 60+ days after demand notice) - Late payment penalty: 1% per month up to maximum 25%