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Maine’s placement can affect the insolvency backstop

Maine’s property-and-casualty guaranty association statute excludes insurance placed as surplus lines, financial-guaranty and investment-risk policies, and specified service-contract insurance. A surplus-lines notice must disclose that the insurer does not participate in state guaranty funds. Ask the broker where the policy will be placed and what actual form and trigger apply; this notice and insolvency law do not determine contract-event coverage. 1,2,3

What Is Contract Frustration?

Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. Read the national Contract frustration guide.

What to Watch for in Maine

  • Surplus-lines placement sits outside the state guaranty fund

    Maine excludes insurance procured as surplus lines from the property-and-casualty guaranty association. If the broker proposes a nonadmitted insurer, ask what surplus-lines status applies and review the required notice that the insurer does not participate in state guaranty funds. 1,2

  • The financial-guaranty exclusion turns on actual classification

    Maine separately excludes financial-guaranty insurance and other protection against investment risks. The statute does not say that contract-frustration coverage belongs in that class; ask the insurer to identify its form and explain the classification based on the insured loss and trigger. 1

  • A 2025 amendment created a cybersecurity-policy exception

    Maine’s 2025 amendment to §4433 changed the exclusion for warranty and service-contract insurance to preserve coverages that may be included in a cybersecurity insurance policy. That narrow change does not classify a contract-frustration product; review the actual form if a proposal combines coverages. 3,1

Who Regulates Insurance in Maine

Maine Bureau of Insurance

The Maine Bureau of Insurance licenses producers and companies, enforces Maine insurance laws, and investigates property and casualty complaints including commercial coverage complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross direct premium when Maine is the insured's home state Maine charges 3% of gross direct premium when it is the insured's home state; your broker handles the tax and may include it with the premium. Surplus-lines policies are outside Maine guaranty-association protection. Maine generally requires a diligent search, with an exempt-commercial-purchaser exception requiring broker disclosure and the purchaser's written request. 7,8,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Maine

  1. Will the policy be placed with an admitted insurer or as surplus-lines coverage, and which statutory notice will accompany it?
  2. What insurance class does the insurer assign to the form, and which policy terms support that class?
  3. Which specific contract events trigger payment, and what exclusions or conditions could defeat a claim?

Contract Frustration in Maine: FAQ

Does a Maine surplus-lines policy participate in the state guaranty fund? 1,2

Maine’s guaranty-association law excludes policies procured as surplus lines, and its required notice states that nonadmitted surplus-lines insurers do not participate in state guaranty funds. This insolvency protection is separate from policy coverage. 1,2

Did Maine’s 2025 service-contract amendment classify contract-frustration insurance? 3

No. It changed the statutory exclusion for warranty and service-contract insurance to recognize certain cybersecurity-policy coverages. It does not decide the class or coverage of a contract-frustration form. 3

Contract Frustration in Other States

Other Coverage in Maine

Sources

  1. Maine Revised Statutes, Title 24-A, §4433, Scope. Maine Legislature, Office of the Revisor of Statutes; §4433(1) kinds of insurance within subchapter; §4433(2)(B), (D), (F), and (I) exclusions for mortgage guaranty, surplus lines, financial guaranty/investment risk, and warranties/service contracts; official code text reflects laws through 2025 First Special Session and is current through October 1, 2025. Accessed 2026-09-28.
  2. Maine Revised Statutes, Title 24-A, §2009, Surplus lines insurance. Maine Legislature, Office of the Revisor of Statutes; §2009, separate signed and dated notice accompanying surplus-lines applications and policies, including nonparticipation in state guaranty funds; amended by PL 2025, c.348, §22. Accessed 2026-09-28.
  3. Maine Public Law 2025, chapter 348 (LD 1837). Maine Legislature; §§22 and 37, amendments to 24-A MRSA §§2009 and 4433; approved June 17, 2025; First Special Session adjourned June 25, 2025 and general effective date for nonemergency laws was September 24, 2025; the bill text changes the law that appears in the 2025 official code. Accessed 2026-09-28.
  4. Maine Bureau of Insurance. Maine Bureau of Insurance; Homepage and commercial insurance resources. Accessed 2026-09-28.
  5. Insurance License Lookup. Maine Bureau of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Maine Bureau of Insurance; State complaint process and contact. Accessed 2026-09-28.
  7. 36 M.R.S. §2531. Maine Legislature; 36 M.R.S. §2531(1)-(2), current page: home-state basis; 3% tax; producer pays on chapter 19 surplus lines. Accessed 2026-09-28.
  8. 24-A M.R.S. §4433. Maine Legislature; Surplus-lines contracts excluded from guaranty association. Accessed 2026-09-28.
  9. 24-A M.R.S. §2002-A. Maine Legislature; ECP disclosure and written-request procedure. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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