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Mark & Tammy Rutland v. Providence Mutual Fire Insurance Company
Docket No. INS-05-2094, Decision Issued February 2, 2006.

The insureds requested a hearing following receipt of a notice of homeowners insurance policy cancellation citing the failure to comply with loss control recommendations as the reason for cancellation. At hearing, the company submitted a copy of the loss control recommendation letter provided to the insureds and noted that the insureds did not comply with the recommendations within 90 days. The insureds discussed the various recommendations and the efforts that have been made toward their compliance.

Held: For the insureds. Under the Maine Property Insurance Cancellation Control Act, 24-A M.R.S. A. §§ 3048-3059, a policy may be cancelled for a reason based upon one or more of the grounds permitted in § 3049. Section 3049(10) permits cancellation for the failure to comply with reasonable loss control recommendations within 90 days after notice from the insurer. However, a company is limited to the cancellation grounds that appear in its contract, and this policy does not contain § 3049(10) as one of its permissible cancellation grounds. Thus, the company may not cancel the policy on this basis.

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