Me. Rev. Stat. » Title 24-A
Maine Revised Statutes

Me. Rev. Stat. tit. 24-A, § 4435 (2026)

Definitions

✓ current as of May 2026
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As used in this subchapter, unless context otherwise requires:   [PL 1969, c. 561 (NEW).]
1.  Account.  "Account" means any one of the 3 accounts created by section 4436.  
[PL 1969, c. 561 (NEW).]
1-A.  Affiliate.  "Affiliate" means a person who directly, or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with an insolvent insurer on December 31st of the year immediately before the year in which the insurer becomes an insolvent insurer.  
[PL 1989, c. 751, §2 (NEW).]
2.  Association.  "Association" means the Maine Insurance Guaranty Association created under section 4436.  
[PL 1969, c. 561 (NEW).]
3.  Board of directors.  "Board of directors" means the board of directors of the association.  
[PL 1969, c. 561 (NEW).]
4.  Covered claim.  "Covered claim" means an unpaid claim, including one for unearned premiums but excluding one for punitive damages, arising under and within the coverage and applicable limits of a policy of a kind of insurance referred to in section 4433 to which this subchapter applies issued by an insurer that becomes an insolvent insurer after May 9, 1970, and where:  
A. The claimant or insured is a resident of this State at the time of the insured event; or   [PL 1969, c. 561 (NEW).]
B. The property from which the claim arises is permanently located in this State.   [PL 1969, c. 561 (NEW).]
"Covered claim" includes claim obligations that arose through the issuance of an insurance policy by a member insurer, which are later allocated, transferred, merged into, novated, assumed by or otherwise made the sole responsibility of a member or nonmember insurer if: the original member insurer has no remaining obligations on the policy after the transfer; a final order of liquidation with a finding of insolvency has been entered against the insurer that assumed the member's coverage obligations by a court of competent jurisdiction in the insurer's state of domicile; the claim would have been a covered claim if the claim had remained the responsibility of the original member insurer and the order of liquidation had been entered against the original member insurer, with the same claim submission date and liquidation date; and, in cases for which the member's coverage obligations were assumed by a nonmember insurer, the transaction received prior regulatory or judicial approval.  
"Covered claim" does not include any amount due any insurer, reinsurer, affiliate, insurance pool or underwriting association, as subrogation recoveries or otherwise, except that any payment made to the workers' compensation residual market pool pursuant to section 4438, subsection 1, paragraph A‑1 must be included as a covered claim. "Covered claim" does not include any first-party claims by an insured whose net worth exceeds $25,000,000 on December 31st of the year prior to the year in which the member insurer becomes an insolvent insurer. An insured's net worth on that date is deemed to include the aggregate net worth of the insured and all its subsidiaries as calculated on a consolidated basis.  
[PL 2025, c. 348, §38 (AMD).]
4-A.  Cybersecurity insurance.  "Cybersecurity insurance" means first-party or 3rd-party coverage, in a policy or endorsement, written on a direct, admitted basis for losses and loss mitigation arising out of or relating to data privacy breaches, unauthorized information network security intrusions, computer viruses, ransomware, extortion through electronic means, identity theft and similar exposures.  
[PL 2025, c. 348, §39 (NEW).]
5.  Insolvent insurer.  "Insolvent insurer" means a member insurer:  
A. Authorized to transact insurance in this State either at the time the policy was issued or when the insured event occurred; and   [PL 1995, c. 289, §13 (AMD).]
B. Against whom a final order of liquidation has been entered with a finding of insolvency by a court of competent jurisdiction.   [PL 2001, c. 478, §6 (AMD); PL 2001, c. 478, §11 (AFF).]
Effective July 1, 1995, the workers' compensation residual market pool, as created by the Bureau of Insurance Rules, Chapter 440, is deemed an insolvent insurer.  
[PL 2001, c. 478, §6 (AMD); PL 2001, c. 478, §11 (AFF).]
6.  Member insurer.  "Member insurer" means any authorized insurer that writes any kind of insurance to which this subchapter applies and that is not a risk retention group as defined in section 6093, subsection 13. If an insurer is authorized at the time of an insolvency and subsequently is approved to withdraw its license authority for the kinds of insurance covered by any account to which claims relating to the insolvency are allocated, the withdrawn insurer shall continue to be a member of each account solely for purposes of assessments relating to claims resulting from the insolvency until these claims are paid or otherwise extinguished.  
[PL 2013, c. 238, Pt. E, §2 (AMD).]
7.  Net direct written premiums.  "Net direct written premiums" means direct gross premiums written on insurance policies to which this subchapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. "Net direct written premiums" does not include premiums on contracts between insurers or reinsurers or premiums written through the United States Government Flood Insurance Program.  
[PL 1999, c. 790, Pt. A, §29 (AMD).]
8.  Insurer.  "Insurer" means any insurer as defined in section 4.  
[PL 1981, c. 484, §1 (AMD).]
9.  Line of credit.  "Line of credit" means an irrevocable stand-by commitment whereby the association or member insurer and a qualified financial institution or group of qualified financial institutions enter into a formal and binding contract in which the qualified financial institution or group of qualified financial institutions agree to lend a certain amount of money within a stated period of time. The terms and conditions of any line of credit shall be established by rules adopted jointly by the Bureau of Financial Institutions and the Bureau of Insurance.  
[PL 1989, c. 67, §4 (NEW); PL 2001, c. 44, §11 (AMD); PL 2001, c. 44, §14 (AFF).]
9-A.  Person.  "Person" means an individual or legal entity, including a governmental entity.  
[PL 2001, c. 478, §7 (NEW); PL 2001, c. 478, §11 (AFF).]
10.  Qualified financial institution.  "Qualified financial institution" means one which is insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation or a successor federal deposit insurance agency or agencies, and has an equity capital to assets ratio of 6.5% or greater, as determined in accordance with generally accepted accounting principles.  
[PL 1989, c. 67, §4 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 625, §159 (AMD). PL 1979, c. 658, §§3,4 (AMD). PL 1981, c. 484, §1 (AMD). PL 1985, c. 279, §2 (AMD). PL 1987, c. 769, §B5 (AMD). PL 1989, c. 67, §§2-4 (AMD). PL 1989, c. 751, §§2,3 (AMD). PL 1991, c. 885, §E33 (AMD). PL 1991, c. 885, §E47 (AFF). PL 1995, c. 289, §§12,13 (AMD). PL 1999, c. 790, §A29 (AMD). PL 2001, c. 44, §11 (AMD). PL 2001, c. 44, §14 (AFF). PL 2001, c. 478, §§5-7 (AMD). PL 2001, c. 478, §11 (AFF). PL 2013, c. 238, Pt. E, §2 (AMD). PL 2025, c. 348, §§38, 39 (AMD).
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Notes of Decisions
Cited in 13 cases, 1990–2019 · leading case: Pinkham v. Morrill, 622 A.2d 90 (Me. 1993).
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Pinkham v. Morrill, 622 A.2d 90 (Me. 1993). · cites it 4× “As framed by NHIC, the issue is whether the tortfeasors, Morrill and B & A, or the victim’s uninsured motorist carrier, NHIC, is ultimately responsible for the damages paid to Pinkham.”
Maine Ins. Guar. Ass'n v. Folsom, 2001 ME 63 (Me. 2001). · cites it 4× “*188 24-A M.R.S.A. § 4435(4) (2000) (emphasis added).”
Liberty Mut. Ins. v. Superintendent of Ins., 1997 ME 22 (Me. 1997). · cites it 2× “” 1 24-A M.R.SA. § 4435(6). The 1989 amendments also modified the methodology used in making the assessments of each member insurer.”
Ventulett v. Maine Ins. Guar. Ass'n, 583 A.2d 1022 (Me. 1990). “24-A M.R.S.A. § 4435(4) (emphasis added).”
Juliano v. Ameri-cana Transp., 2007 ME 9 (Me. 2007). · cites it 3× “In an amended decree, the hearing officer determined that MIGA is not obligated to reimburse Wausau for one-third of the incapacity benefits because Wausau’s claim against MIGA is a subrogation claim, which is not a “covered claim” pursuant to 24-A M.”
Beane v. Maine Ins. Guar. Ass'n, 916 A.2d 204 (Me. 2007). “Likewise, 24-A M.R.S. § 4435(4)(B) (2006) refers to certain “first-party claims” as being excluded from the obligations of MIGA.”
Arbo v. Tower Grp., Inc. (Me. Super. Ct 2019). · cites it 2× “(See DSMF ,r,r 34-44); 24-A M.R.S. § 4435. Plaintiffs were therefore put on notice that they would have to demonstrate that there was a legitimate factual dispute as to whether their claims were both "covered" and timely.”
Purcell v. Mehlhorn (Me. Super. Ct 2007). · cites it 2× “24-A M.R.S.A. § 4435(4) (2007). MICA is "obligated to pay covered claims," but is not obligated to pay a claimant "an amount in excess of the obligation of the insolvent insurer under the policy or coverage from which the claim arises.”
Belanger v. North Am. Specialty Ins., 504 F.3d 147 (1st Cir. 2007). “24-A M.R.S.A. § 4435(4). . The Belanger Defendants could have avoided this problem.”
North Am. Specialty Ins. v. Seacoast Crane Co., 226 F.R.D. 27 (D. Me. 2005). “Second Affirmative Defense Plaintiff has failed to state a claim upon which relief can be granted because 24-A M.R.S.A. § 4435 prohibits the Association from paying NAS and excuses Seacoast from any obligation to NAS.”
Maine Ins. Guar. Ass'n v. North Am. Ins. Co. (Me. Super. Ct 2006). “" 24-A M.R.S.A. §4435(4). "Insurer" for Guaranty Association purposes has the same meaning as the general Maine Insurance Code definition, see 24-A b1.”
LePage v. Collins (Me. Super. Ct 2007). “" 24-A M.R.S.A. § 4435(4).There is no dispute that LePage's claim in this case is a covered claim.”
Show all 13 citing cases →
— Me. Rev. Stat. tit. 24-A, § 4435(4) — 8 cases
Pinkham v. Morrill, 622 A.2d 90 (Me. 1993). “As framed by NHIC, the issue is whether the tortfeasors, Morrill and B & A, or the victim’s uninsured motorist carrier, NHIC, is ultimately responsible for the damages paid to Pinkham.”
Maine Ins. Guar. Ass'n v. Folsom, 2001 ME 63 (Me. 2001). “*188 24-A M.R.S.A. § 4435(4) (2000) (emphasis added).”
Ventulett v. Maine Ins. Guar. Ass'n, 583 A.2d 1022 (Me. 1990). “24-A M.R.S.A. § 4435(4) (emphasis added).”
Juliano v. Ameri-cana Transp., 2007 ME 9 (Me. 2007). “In an amended decree, the hearing officer determined that MIGA is not obligated to reimburse Wausau for one-third of the incapacity benefits because Wausau’s claim against MIGA is a subrogation claim, which is not a “covered claim” pursuant to 24-A M.”
Purcell v. Mehlhorn (Me. Super. Ct 2007). “24-A M.R.S.A. § 4435(4) (2007). MICA is "obligated to pay covered claims," but is not obligated to pay a claimant "an amount in excess of the obligation of the insolvent insurer under the policy or coverage from which the claim arises.”
— Me. Rev. Stat. tit. 24-A, § 4435(4)(B) — 2 cases
Beane v. Maine Ins. Guar. Ass'n, 916 A.2d 204 (Me. 2007). “Likewise, 24-A M.R.S. § 4435(4)(B) (2006) refers to certain “first-party claims” as being excluded from the obligations of MIGA.”
Beane v. Maine Ins. Guar. Ass'n, 2007 ME 40 (Me. 2007).
— Me. Rev. Stat. tit. 24-A, § 4435(5) — 1 case
Arbo v. Tower Grp., Inc. (Me. Super. Ct 2019). “(See DSMF ,r,r 34-44); 24-A M.R.S. § 4435. Plaintiffs were therefore put on notice that they would have to demonstrate that there was a legitimate factual dispute as to whether their claims were both "covered" and timely.”
— Me. Rev. Stat. tit. 24-A, § 4435(6) — 1 case
Liberty Mut. Ins. v. Superintendent of Ins., 1997 ME 22 (Me. 1997). “” 1 24-A M.R.SA. § 4435(6). The 1989 amendments also modified the methodology used in making the assessments of each member insurer.”
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