Archives: 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008

Shani Bryer v. Kemper Independence Insurance Company
Docket No. INS-05-2108, Decision Issued January 30, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal stating that the insured’s claim record did not meet the company’s underwriting requirements. At hearing, the company maintained that a claim had occurred because of a property condition, and the insured’s negligence in creating this condition indicated a propensity towards future claims of a similar nature. The insured corroborated the loss.

Held: For the insured. The company’s notice of nonrenewal informed the insured only that the policy would not be renewed because her claim record did not meet the company’s underwriting requirements. The plain language of 24-A M.R.S.A. § 3051 requires a company to notify its insured of the explicit reason for the nonrenewal, and explanations such as “underwriting reasons,” “loss record,” and similar insurance terms are not by themselves acceptable explanations of an insurer’s intended nonrenewal. As the company failed to meet the explicitness requirement of § 3051, the notice does not comply with the statutory standards to nonrenew the policy at issue.

Return to Cancellation / Nonrenewal Hearing Decisions