Bulletin 491 details statutory requirements under MAICCA regarding excluded drivers
The Maine Bureau of Insurance has issued new guidance clarifying how insurers must handle excluded drivers in personal automobile insurance policies, underscoring that such exclusions are permitted only under limited circumstances and must meet strict statutory requirements.
In Bulletin 491, dated March 12, 2026, the Bureau said the guidance is intended to “provide clarity and ensure compliance” with 24-A M.R.S. § 2916-B of the Maine Automobile Insurance Cancellation Control Act (MAICCA), which governs when and how drivers may be excluded from coverage.
The statute allows insurers to exclude drivers in private passenger auto policies, but only if specific criteria are satisfied.
Exclusions tied to avoiding cancellation or nonrenewal
At the core of the bulletin is the requirement that any exclusion must be used as an alternative to policy cancellation or nonrenewal, allowing the insurer to continue coverage without assuming an unreasonable risk. The exclusion must be limited to a specifically named individual identified in the policy.
The Bureau also emphasized that exclusions cannot be imposed unilaterally. Instead, they must be agreed to in writing by both the policyholder and the insurer, ensuring that the insured has knowingly consented to the removal of coverage for the identified driver.
In addition, insurers must be able to support the exclusion from an underwriting standpoint. The bulletin states that carriers must demonstrate that the excluded driver has engaged in conduct that would justify cancellation or nonrenewal under Maine law.
Endorsement and notice requirements
The Bureau outlined detailed documentation requirements, including that the exclusion must be formalized through a policy endorsement filed with and approved by the Bureau. The endorsement must clearly identify the excluded driver and the terms of the exclusion and must be signed by both the policyholder and the insurer.
The bulletin also mandates that the endorsement include a conspicuous notice to policyholders addressing potential liability risks, particularly when the excluded driver is under 18. The required notice states:
“NOTICE TO POLICYHOLDER IF THE PERSON EXCLUDED FROM COVERAGE BY THIS ENDORSEMENT IS UNDER THE AGE OF 18 YEARS, YOU CAN BE HELD LIABLE UNDER STATE LAW FOR THE PERSON’S NEGLIGENCE WHEN THE PERSON OPERATES YOUR VEHICLE WITH YOUR PERMISSION. YOUR POLICY DOES NOT INSURE YOU AGAINST THIS LIABILITY.”
Disclosure on proof of insurance
Beyond the endorsement itself, the Bureau said insurers must ensure that any excluded driver is listed on the policyholder’s evidence of insurance or financial responsibility, as required under 29-A M.R.S. § 1601(10).
While not mandated by statute, the Bureau added that obtaining an acknowledgment signature from the excluded driver is considered a best practice.
Insurer compliance expectations
The bulletin concludes by outlining the Bureau’s expectations for insurer compliance. Carriers writing auto coverage subject to MAICCA are expected to maintain appropriate internal procedures, staff training, and documentation sufficient to demonstrate adherence to 24-A M.R.S. § 2916-B.
The guidance was issued by Superintendent of Insurance Robert L. Carey and reflects the Bureau’s focus on ensuring that driver exclusions are used narrowly and in accordance with statutory requirements.
