Maine changes definition of a 'reportable accident'
This definition was amended in 2023 to change the previous property damage limit of $1,000 to $2,000.
The Maine Department of Professional & Financial Regulation Bureau of Insurance published a bulletin addressing the change of the statutory definition of “reportable accident.” A reportable accident is an accident resulting in bodily injury or death or apparent property damage of $2,000 or more. This definition was amended in 2023 to change 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 automobile insurance industry in Maine as personal auto policies cannot be nonrenewed due to accident history unless the accidents meet certain standards set in 24-A M.R.S. § 2916-A. One such standard is if an insured is involved in two or more vehicle accidents that result in personal injury or property damage over $2,000. This means that accidents with apparent property damage of less than $2,000 and no bodily injury or death cannot be used toward nonrenewing an insured’s policy.
The Bureau reminds insurers that reportability is based on the threshold applicable at the time of the accident, so accidents that happen on or after October 25, 2023, are held to the new $2,000 standard. Insurers should update their underwriting guidelines and information systems to reflect the changes. Policy forms should also be updated if they include a specific dollar threshold. If outdated forms remain in use, they may not be enforced.
The bulletin can be found here.