Sec. 1. 24-A MRSA §2303-C is enacted to read:

§2303-C.__Premium increases or surcharges based on motor

vehicle accidents

An insurer may not increase the premium or impose a surcharge on a motor vehicle insurance policy based on the involvement in a motor vehicle accident of the named insured or another person who operates a motor vehicle insured under the policy unless the named insured or another person who operates a motor vehicle insured under the policy is individually or aggregately involved in 2 or more motor vehicle accidents while operating a motor vehicle insured under the policy, resulting in either personal injury or property damage in excess of $500. For purposes of this section, any of the following occurrences involving a motor vehicle operated by a named insured or such other person may not be considered an accident when:

1.__Struck from rear.__The motor vehicle was struck from the rear;

2.__Struck while parked.__The motor vehicle was struck while parked;

3.__Conviction of crime or violation.__Only the operator of another motor vehicle involved in the accident was convicted of a crime, offense or violation contributing to the accident; or

4.__Reimbursement or judgment.__The named insured or other operator of the motor vehicle insured under the policy or the insurer thereof was reimbursed by or on behalf of a person responsible for the accident or has a judgment against that person.

When more than one motor vehicle in a household is insured by the same insurer, the number of accidents that would permit an increase in premium or a surcharge under this section must, for the aggregate, be increased by one for each additional motor vehicle insured.

SUMMARY

This bill prohibits insurers from increasing the premium or imposing a surcharge on a motor vehicle insurance policy unless the named insured or another person operating a motor vehicle insured under the policy is involved in 2 or more accidents resulting in either personal injury or property damage in excess of $500.