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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal Docket No. INS 05-2099 Decision
Joyce Mitchell and Alexander Kriekhaus v. Federal Insurance
The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing the insured’s loss activity as the reason for nonrenewal. At hearing, the company testified that its actuarial analysis and predictive modeling tools indicated an increased likelihood of future loss. The insured corroborated the losses cited in the nonrenewal notice.
Held: For the insured. Title 24-A M.R.S.A.
§ 3051 specifically states that explanations such as “loss
record” and similar insurance terms are not by themselves acceptable
reasons for nonrenewal. A company must demonstrate a nexus or pattern
to illustrate that the cause or nature of the past claims is such that
similar or continued future claims are likely, and the connection must
be clearly indicated in the notice of nonrenewal. Simply the fact that
claims have occurred does not by itself meet this standard.
Last Updated: August 22, 2012
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