Progressive total-loss offers in Maine: how the appraisal clause works

Maine regulates first-party automobile total losses through statutory authorities in Title 24-A: the Unfair Claim Settlement Practices Act at 24-A M.R.S. § 2164-D (regulatory, no private right of action under the section itself per § 2164-D(8)), the late-payment statute at 24-A M.R.S. § 2436, and the private-right-of-action statute at 24-A M.R.S. § 2436-A. Maine does not recognize a common-law first-party bad-faith tort — the Maine Supreme Judicial Court declined to do so in Marquis v. Farm Family Mutual Insurance Co., 628 A.2d 644 (Me. 1993), reasoning that the legislature had spoken through §§ 2436 and 2436-A. 24-A M.R.S. § 2164-D — Unfair Claim Settlement Practices. The statute defines acts that constitute unfair claim settlement practices, including: misrepresenting pertinent facts or insurance policy provisions; failing to acknowledge with reasonable promptness pertinent written communications about claims; failing to adopt and implement reasonable standards for the prompt investigation of claims; refusing to pay claims without conducting a reasonable investigation; failing to affirm or deny coverage of claims within a reasonable time; failing, without just cause and with such frequency as to indicate a general business practice, to deal with insureds in good faith to resolve claims; and compelling insureds to institute litigation to recover amounts due. Section 2164-D(8) provides that "This section may not be construed to create or imply a private cause of action for violation of this section"; the private remedy lives in § 2436-A. 24-A M.R.S. § 2436-A — Unfair Claim Settlement Practices Private Right of Action. Maine is one of a small number of states with an explicit private right of action under the UCSPA. The statute lets a person injured by any of five listed actions of that person's own insurer recover damages, costs and disbursements, reasonable attorney's fees, and interest on damages at 1.5% per month: knowingly misrepresenting pertinent facts or policy provisions relating to coverage; failing to acknowledge and review claims within a reasonable time after written notice; threatening to appeal an arbitration award to force a smaller settlement; failing to affirm or deny coverage within a reasonable time after completing the investigation; and, without just cause, failing to effectuate prompt, fair and equitable settlement of claims in which liability has become reasonably clear. Under § 2436-A(2), an insurer acts without just cause if it refuses to settle without a reasonable basis to contest liability, the amount of damages or the extent of injuries. The 1.5%-per-month interest provision (often referenced as an 18%-per-annum effective rate) is unusually robust as a statutory floor for time-value-of-money exposure. 24-A M.R.S. § 2436 — Late Payment of Claims. Maine's late-payment statute sets timing rules for the payment or denial of claims; the precise statutory deadline varies by claim type (for example, the statute references a 60-day window for certain fire-insurance contexts). Readers should consult the current text of § 2436 for the operative deadline on a given claim; under § 2436(3), an overdue undisputed claim bears interest at 1 1/2% per month after the due date. Maine total-loss valuation methodology. Maine does not appear to have a comprehensive total-loss valuation regulation analogous to Massachusetts 211 CMR 133 or Maryland COMAR 31.15.12. Maine total-loss claims are governed by the policy's terms and by general UCSPA principles under § 2164-D, with statutory comparable-vehicle restrictions in 24-A M.R.S. § 2910-B (enacted in 2021) limiting comparables in certain contexts. Marquis v. Farm Family Mutual Insurance Co., 628 A.2d 644 (Me. 1993). The Maine Supreme Judicial Court declined to recognize a common-law first-party bad-faith tort, holding that the legislature had spoken through §§ 2436 and 2436-A and that creating a parallel tort would be inconsistent with the legislative scheme. § 2436-A remains the primary statutory lever, with its damages + costs + attorney's fees + 1.5%/month interest structure. Maine salvage titling is governed by the current Title 29-A salvage provisions; Maine does not appear to codify a specific percentage-of-fair-market-value threshold by statute (29-A M.R.S. § 1855 has been repealed). Industry practice in Maine is commonly described as following the Total Loss Formula, an industry methodology rather than a statutory percentage.