24-A §3102-A. Indemnification; surety on bonds
Title 24-A: MAINE INSURANCE CODE
Chapter 43: SURETY INSURANCE CONTRACTS
§3102-A. Indemnification; surety on bonds
1. Annual notice to indemnitors. An insurer authorized to transact surety insurance in this State that acts as surety upon a payment or performance bond executed in this State in reliance on an indemnity agreement shall annually notify the following persons of the existence of the indemnity agreement:
A. All indemnitors who are residents of the State; [1995, c. 296, §1 (NEW).]
B. All indemnitors of a bond executed by a corporation incorporated in the State; and [1995, c. 296, §1 (NEW).]
C. The surety insurer's agent or broker, if an agent or broker is involved. [1995, c. 296, §1 (NEW).]
Notice to the indemnitors must be sent by certified mail to their last known address. The annual notice must be sent on or before the anniversary of the date of the execution of the indemnity agreement.
[ 1995, c. 296, §1 (NEW) .]
2. Termination of indemnity agreement. Failure to send an annual notice in accordance with the requirements of this section terminates an indemnity agreement executed after the effective date of this section as to any indemnitor to whom the annual notice was not sent. In no event does failure to send an annual notice or termination of the indemnity agreement relieve an indemnitor or the indemnitors' heirs, successors or assigns from past, present or future liability arising under any such bond executed in reliance upon the indemnity agreement if that indemnity agreement was in effect at the time the bond was executed.
[ 1995, c. 296, §1 (NEW) .]
SECTION HISTORY
1995, c. 296, §1 (NEW).