Section 031-370-5 - Policy formsIn addition to the requirements of Title 24-A M.R.S.A. Chapter 27, all legal services insurance policies and certificates must meet the following requirements:
A. Policies and certificates must indicate prominently the name of the insurer and full address of its principal place of business.B. Policies must contain a detailed list and description of the legal services provided or the legal matters for which expenses are to be reimbursed and the amount of reimbursement. Covered services may include handling of the following matters: (1) Prenuptial Agreement, Annulment, Separation, Divorce;(2) Adoption, Guardianship, Conservatorship;(3) Preventive Legal Service, Document Review, Letter-writing;(5) Purchase & Sale Contract, Real Estate Transactions;(6) Defense of Civil Suit, Defense of Debt Collection;(7) Eviction (if tenant);(8) Wills, Estate Settlements;(10) Other services may be included upon demonstration by the insurer satisfactory to the Superintendent that the services covered are a proper subject of insurance.C. Policies must contain the following conditions: (1) With respect to services other than basic legal advice rendered by telephone or mail as described in Title 24-A M.R.S.A. §2883, the certificateholder may exercise freedom in the selection of an attorney, provided that the latter is properly admitted to the bar of the applicable jurisdiction.(2) Coverage is to be provided for costs incurred during the policy term. Coverage of services ongoing at the time coverage terminates is to be provided for an additional 90 days.(3) The certificate holder shall not be indemnified for a greater sum than that of costs actually incurred.(4) All periods of insurance shall begin and end of 12:01 a.m. standard time at the place of issuance.(5) Cancellation may be initiated by either the insurer or the policyholder by providing 30-days written notice to the other for reasons other than non-payment of premium. Any return premium shall be on a pro-rata basis.(6) If the insurer initiates cancellation for non-payment of premium, a grace period of not less than 10 days shall be provided. Policies may contain the following exclusions:D. Policies may contain the following exclusions: (1) Services received prior to becoming insured;(2) Defense costs already honored under a general, automobile or employer's liability contract, or any professional liability contract; where both policies apply, the group legal services contract shall be deemed excess;(3) Services for which no charge would have been made, but for the existence of insurance;(4) Defense of suits filed in conjunction with professional liability or activities related to business pursuits or profit-making outside ventures, fiduciary responsibility of the insured, or his or her serving as a director or officer of either a for-profit or not-for-profit organization;(5) Reimbursements prohibited by 29 U.S.C. § 186(C) (8) (1978 Amendments to Taft-Hartley Act); and(6) Other exclusions approved by the Superintendent.E. Certificates issued under group policies may summarize the terms of the master contract but must contain a full and clear statement of the benefits, exclusions and limitations.02-031 C.M.R. ch. 370, § 5