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Christine Ralton v. Dorchester Mutual Insurance Company
Hearing #2005-15878, Decision Issued March 29, 2005.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal alleging that a condition of the property did not meet its underwriting guidelines. At hearing, the company argued only that the condition exceeded its underwriting guidelines. The insured argued that the company had insured the property under the same condition for nearly a decade.

Held: For the insured. Title 24-A M.R.S.A. § 3054 specifically states that a statement from an insurer that the risk does not meet its underwriting guidelines alone is insufficient to prove that the reason is a good faith reason related to the insurability of the property. The company did not offer any explanation for its nonrenewal action other than to say that the cited condition renders the property ineligible under its underwriting guidelines. Therefore, the company has failed to meet the statutory requirements for nonrenewal of the policy.

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