Maine changes the definition of a “reportable accident”

The Insurance Bureau of the State of Maine Department of Professional and Financial Regulation has published a bulletin amending the statutory definition of a “reportable accident.” A reportable accident is one that results in bodily injury or death or apparent property damage of $2,000 or more. This definition was amended in 2023 to increase the previous property damage limit of $1,000 to $2,000. The change took effect on October 25, 2023.

This updated definition is important for the auto insurance industry in Maine because private auto insurance policies cannot be renewed based on accident history unless the accidents meet certain standards set out in 24-A MRS § 2916-ASuch a standard applies when an insured is involved in two or more car accidents that result in bodily injury or property damage exceeding $2,000. This means that accidents with obvious property damage of less than $2,000 and no bodily injury or death cannot be used to non-renew an insured’s policy.

The office reminds insurers that the reporting requirement is based on the threshold in effect at the time of the accident, so accidents that occur on or after October 25, 2023, will be subject to the new $2,000 standard. Insurers should update their underwriting policies and information systems to reflect the changes. Insurance forms should also be updated if they include a specific dollar threshold. If outdated forms continue to be used, they may be unenforceable.

You can find the bulletin Here.