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An Act To Allow a Homeowner To Insure a Residence for Less than Actual Cash Value
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §3002, sub-§1, as amended by PL 1989, c. 316, §1, is further amended to read:
 
1.   NoAn insurer may not issue fire insurance policies on property in this State other than those of the Maine standard fire insurance policy, which shallmust contain the following consideration and insuring clause, assignment clause and the general conditions and stipulations set forth after these consideration, insuring and assignment clauses:
Sec. 2.  24-A MRSA §3004-B  is enacted to read:
§ 3004-B. Alternative insured value
 
1.  Alternative insured value.      "Alternative insured value," as used in section 3002, means the amount at which a home that is the primary residence of the insured person may be insured as an alternative to actual cash value. The alternative insured value may not be more than the actual cash value of the home. In order to insure a home at the alternative insured value, the insurer and insured person shall execute a rider to the policy that indicates the insured person’s choice of insuring at the alternative insured value. The rider must be in a form approved by the superintendent. The superintendent shall adopt rules to establish the approved form for an alternative insured value rider. Rules adopted pursuant to this subsection are routine technical rules as defined by Title 5, chapter 375, subchapter 2-A.
 
SUMMARY
This bill allows a homeowner to insure the primary residence of the homeowner for an alternative insured value, which is no more than the actual cash value of the residence. It requires the execution of a rider that meets the requirements of the Superintendent of Insurance within the Department of Professional and Financial Regulation to indicate the homeowner’s choice of insuring at the alternative insured value. It requires the superintendent to adopt routine technical rules to establish the approved form for the alternative insured value rider.