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Thomas & Veronica Plog v. New England Guaranty Insurance Company
Docket No. INS-06-2002, Decision Issued February 28, 2006.

The insureds requested a hearing following receipt of a notice of homeowners insurance coverage cancellation citing the failure to comply with loss control recommendations as the grounds for cancellation. At hearing, the company provided evidence of the inspection report and resulting loss control recommendation letter. The insureds testified that they had requested an extension of time on the recommendations but were refused.

Held: For the insureds. Effective July 30, 2004, 24-A M.R.S.A. § 3049 was amended to include five additional grounds for cancellation including the failure to comply with reasonable loss control recommendations within 90 days after notice from the insurer. 24-A M.R.S.A. § 3049(10). The policy issued to the insureds includes a form which amends, among other provisions, the cancellation section of the policy. Although the form incorporated one of the legislative changes effective July 30, 2004, it failed to include the five additional statutory grounds for cancellation. Since the failure to comply with reasonable loss control recommendations within 90 days after notice is not listed in the policy as one of its permissible cancellation grounds, the company may not cancel on this basis.

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