Maine Revised Statutes Title 24-A Sec. 3020 – Policy and deposit note one contract; insolvency; liability of insured; note surrendered
Current as of: 2023 | Check for updates
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1. A policy of insurance issued by a fire or marine insurer, domestic or foreign, and a deposit note given therefor are one contract. A loss under such policy or other equitable claims may be proved in defense to the note, though it was indorsed or assigned before it was due.
[PL 1969, c. 132, §1 (NEW).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 3020
- Contract: A legal written agreement that becomes binding when signed.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
2. When an insurer becomes insolvent, the maker of the note is only liable for the equitable proportion thereof that accrued during the solvency. If the insolvency occurs within 60 days of the date of the note, it is void except for the amount of the maker’s claim, if any, on the insurer. An insured may not be held to contribute to any losses or expenses beyond the amount of the insured’s deposit note. At the expiration of the insured’s term of insurance, the insured’s note, on payment of all assessments for which it is liable, must be relinquished to the insured, except as provided in section 3021.
[RR 2021, c. 1, Pt. B, §263 (COR).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). RR 2021, c. 1, Pt. B, §263 (COR).