Maine

The relevant statutes are Financial Institutions, Me. Rev. Stat. tit. 9-B §§131, 241 (“ME-FI”) and Credit Insurance, Me. Rev. Stat. tit. 24-A §§12-A, 2168 through 2170 (“ME-INS”).

A. Actions lender may take: ME-FI §241(11); ME-INS §2169 - Although lenders may not interfere with a borrower's free choice of an insurance agent or company, this limitation does not apply to force-placed property insurance.

B. Notices required: No express statutory provision.

C. Coverage required: No express statutory provision.

D. Charges permitted: ME-INS §2170(1) - Lenders may not make any separate charge to handle insurance papers for an insurer or borrower, other than the insurance premium. This prohibition includes any separate charge to substitute one insurance policy for an existing policy when the existing or substituted policy is provided through an insurer or insurance agent or broker licensed to do business in Maine.

E. Finance charge allowed on lender's payment: ME-INS §2170(3) - Permits the payment of interest that may be charged on premium advances made in accordance with the security agreement.

Click here to view relevant Maine Code and Regulations.