On the Maine Property & Casualty exam, the Personal Automobile Policy appears both as a standard ISO-style contract and as a set of Maine auto rules you must apply. This standalone guide reviews the policy's coverage parts, then drills into the Maine overlay: the notably high 50/100/25 financial-responsibility minimums, the at-fault (tort) system with modified comparative negligence, the requirement that uninsured/underinsured-motorist and medical payments coverage be carried, and cancellation/nonrenewal notice. The Maine-specific material is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; the insurer provides a defense, and supplementary payments such as defense costs are paid in addition to the limit.
• Part B — Medical Payments: pays reasonable medical and funeral costs for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists: pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 50/100/25) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives, and permissive users—a friend who borrows the car with permission is generally covered. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business, and an owned utility trailer generally falls within the covered-auto definition for liability. That framework is national; Maine governs the limits and the liability environment around it.

Maine uses a tort (at-fault) liability system

Maine is an at-fault / tort state, not a no-fault state. The driver who causes a crash is financially responsible, and the injured party collects from that driver's liability coverage or by filing suit. This is why liability coverage and financial responsibility dominate Maine auto law.

Maine applies modified comparative negligence. The rule to remember: a claimant's recovery is reduced by that claimant's own percentage of fault, but a claimant whose fault is as great as or greater than the other party's is generally barred from recovering (a 50% bar—verify the exact statutory wording in 14 M.R.S.). Contrast this with pure comparative states (recovery with no cutoff) and contributory states (any fault bars recovery). Expect the exam to test that Maine is modified comparative, not pure and not contributory.

Financial responsibility: 50/100/25

Every Maine driver generally must show financial responsibility, usually by carrying liability insurance at or above the minimum split limits, which Maine sets notably high:

• $50,000 bodily injury per person
• $100,000 bodily injury per accident
• $25,000 property damage per accident

Shorthand: "50/100/25" (verify the current statutory figures). These are statutory floors; producers routinely recommend higher limits. A deposit or bond can satisfy financial responsibility, but liability insurance is the standard method. After certain serious violations a driver may be required to file an SR-22, a certificate proving the required coverage is in force.

In a 50/100/25 limit, remember the order: the first number is BI per person, the second is BI per accident, and the third (25) is property damage per accident—don't slide the property-damage figure into a BI slot.

Mandatory UM/UIM and medical payments

This is a heavily tested Maine area—Maine mandates coverages many states only require be offered:

• Maine requires uninsured (UM) and underinsured (UIM) motorist coverage, generally at limits at least equal to the policy's liability limits (commonly 50/100, verify).
• Maine also requires medical payments (Med Pay) coverage at a minimum amount (commonly cited around $2,000—verify).
• UM responds when the insured is injured by an at-fault driver who has no liability insurance, and it also covers hit-and-run drivers.
• UIM applies when the at-fault driver has insurance but at limits too low to cover the insured's damages; it pays the gap up to the insured's UIM limit.
• The other driver must be legally at fault for UM/UIM to respond.

Optional and physical-damage coverages

• Collision pays for impact with another vehicle or object or upset of the auto; Comprehensive (Other Than Collision) pays for losses such as theft, fire, hail, vandalism, or hitting an animal—a real concern on Maine's rural roads. Both are optional but typically required by a lender.
• On a total loss, physical-damage coverage pays the vehicle's actual cash value at the time of loss—gap coverage is what pays the difference between ACV and a larger loan balance. A betterment deduction may apply when new parts leave the vehicle better than before the loss.
• A newly acquired auto is generally covered for a limited time if reported within the required period, and a named driver exclusion removes coverage while a specifically named person is driving.
• Maine does not run a no-fault/PIP system; first-party medical comes through the mandatory Med Pay plus health coverage.

Cancellation and nonrenewal

Maine regulates how an insurer may end a personal auto policy:

• Mid-term cancellation generally requires the insurer to give the policyholder the advance written notice required by law.
• Nonrenewal at the end of the term likewise requires advance written notice within the required time so the insured can find replacement coverage.
• On cancellation, the insurer keeps only the earned premium and refunds the unearned portion; when the insurer cancels, the refund is generally pro rata without penalty.

Required vs. optional coverages

Key Maine numbers to memorize

Common exam traps

• Maine is at-fault (tort), not no-fault. There is no mandatory PIP, but Med Pay is mandatory.
• Maine uses modified comparative negligence with a 50% bar, not pure comparative and not contributory.
• 50/100/25—the $25k is property damage; don't slide it into a BI slot.
• UM/UIM and Med Pay are mandatory in Maine, not just "offered"—treat them as required coverages.
• Hitting an animal is Comprehensive, not Collision.
• Total loss pays ACV; gap coverage (not the PAP itself) covers a larger loan balance.
• Liability defense/supplementary payments are paid on top of the limit (national rule that still applies in Maine).

Quick recap

• The PAP's Parts A–F structure is national; Maine sets the limits and legal framework.
• Maine is a tort/at-fault state using modified comparative negligence—a claimant equally or more at fault than the other party is generally barred.
• Minimum liability is set notably high at 50/100/25 (verify).
• Uninsured/underinsured motorist and medical payments coverage are mandatory in Maine.
• Maine has no no-fault/PIP; physical damage is optional, and total losses pay ACV.
• Mid-term cancellation and nonrenewal require the advance written notice the law specifies, with unearned premium refunded.