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Carol Martinelli v. Massachusetts Bay Insurance Company
Docket No. INS-05-2102, Decision Issued January 23, 2006

The insured requested a hearing following receipt of a notice of homeowners insurance cancellation citing “cancelling the homeowners policy mid term in accordance with Maine Statute (24 A s 3007) for substantial change in the risk which increases the risk of loss after insurance coverage has been issued or renewed, including, but not limited to, an increase in exposure due to regulation, legislation, or court decision. Specifically because the home is no longer owner occupied.” The proper governing statute is 24-A M.R.S.A. § 3049.

Held: For the insured. 24-A M.R.S.A. § 3054 requires a company to establish the proof or evidence of its reason for cancellation. The company did not send a representative to the hearing, and did not submit a sworn statement in lieu of appearance. Accordingly, the company failed to meet its burden of proof to establish the proof or evidence that its reason for cancellation is permitted by section 3049.

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