MAINE MAP LAW SIGNED:

A new Maine law (Ch. 671) designed to correct availability problems in the state’s homeowners insurance market has been signed into law by Gov. John Balducci (D). Under the law, Superintendent of Insurance Al Iuppa, who already has authority to implement a voluntary market assistance plan (MAP), would be able to make the plan mandatory for all property insurers if enough insurers do not cooperate. The mandatory MAP would sunset after two years. “The bill … takes a balanced approach that responds to concerns about homeowners insurance availability in the state by allowing the insurance industry to respond with a voluntary MAP,” said Paul Moran, American Insurance Association vice president, northeast region. “This approach will allow the market to respond without the creation of a government mandated FAIR Plan, which was an approach that was discussed in the legislature.” The law also clarifies grounds for cancellations and non-renewals but does not grant the Insurance Superintendent broad powers to overrule the underwriting decisions of insurers, provisions for which were contained in earlier drafts of the legislation. Iuppa has never exercised his authority to start a voluntary MAP because he said he felt “it wouldn’t be worthwhile without a mandate or an incentive.” The threat of the MAP becoming mandatory provides the incentive he wanted for insurers to participate. Iuppa has said he hopes the MAP is only temporary.