The national guide covers liability concepts: negligence and its elements, torts, damages, the defenses, occurrence and claims-made policies, and vicarious liability. This guide covers the Maine rules that change how those concepts work in practice. They are Maine's comparative negligence statute, the direct-action rules for liability insurance, and the casualty cancellation law.

Comparative negligence (14 M.R.S. 156)

Maine uses a modified comparative negligence rule:

• A claimant's own fault doesn't automatically defeat the claim. The damages are reduced to reflect the claimant's share of responsibility.
• The jury first finds the total damages, then reduces them in dollars and cents, not by percentage. The lower figure is the verdict.
• A claimant the jury finds equally at fault recovers nothing.
• With several defendants, each is jointly and severally liable for the full damages. A defendant may ask the jury to apportion fault among the defendants.

Liability insurance and the injured party

• Liability attaches at the loss: the insurer's liability becomes absolute when the loss happens. A final judgment against the insured is not a condition of payment (24-A M.R.S. 2903).
• Reach and apply: a person who wins a judgment against an insured may sue the insurer directly in the person's own name to collect the insurance money, if the insurer had notice of the claim before judgment (2904).

Casualty cancellation and nonrenewal (24-A M.R.S. 2908)

Section 2908 sets the cancellation rules for casualty policies. Private passenger auto has its own Cancellation Control Act (2913–2921), covered in the Maine auto guide.

• New policies: the limits on reasons don't apply to a policy that hasn't been renewed and has been in force less than 60 days when notice is mailed. The notice rules still apply.
• Midterm cancellation is allowed only for:
  • nonpayment
  • fraud or material misrepresentation
  • a substantial change in the risk
  • failure to follow loss-control recommendations
  • substantial breach
  • a solvency determination by the Superintendent
• Cancellation is effective no sooner than 10 days after the insured receives notice. Workers' compensation follows its own 30-day rule (39-A M.R.S. 403).
• Nonrenewal is effective no sooner than 30 days after the insured receives notice.
• Renewal changes: new terms or rates take effect at renewal only with 30 days' notice. Otherwise the insured may cancel the renewal within 30 days and pay pro rata at the lower rate.
• Hearing: within 45 days of the notice. The insurer bears the burden of proving its reason.
• A loss payee on auto physical damage coverage gets the same notice.

Common exam traps

• Equally at fault = no recovery in Maine. Less than equal = damages reduced in dollars.
• An injured claimant with a judgment can sue the insurer directly (2904).
• Commercial casualty: 10 days to cancel, 30 days to nonrenew, 45 days to request a hearing.
• The 60-day new-policy window applies.