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Henry J. Herdt v. MMG Insurance Company
Docket No. INS-05-2097, Decision Issued January 25, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance cancellation citing the insured’s convictions as the reason for cancellation. At hearing, the company argued that the insured’s convictions increase the hazards insured against. The insured maintained that there are no prior incidents, the convictions have not reoccurred, and no hazards are increased.

Held: For the company. Under the Maine Property Insurance Cancellation Control Act, a policy may be cancelled for a reason based upon one or more permitted grounds of 24-A M.R.S.A. § 3049. Section 3049(2) permits cancellation for the conviction of the named insured of a crime having one of its necessary elements an act increasing any hazard insured against. The company demonstrated the existence of the convictions, and the policy provides liability coverage for damages resulting from the insured’s actions. Further, the company is defending the insured from a civil suit brought as a result of the incident at issue. The company has demonstrated that it has met all the requirements to cancel this policy under § 3049(2).

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