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Mary Morgan v. Middlesex Mutual Assurance Company
Docket No. INS-06-2036, Decision Issued May 17, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance policy cancellation citing the failure to comply with reasonable loss control recommendations as the reason for cancellation. At hearing, the company alleged that recommendations were issued to the insured and that compliance with them had not been accomplished. The insured discussed the recommendations and her responses to them.

Held: For the company. The applicable statute, 24-A M.R.S.A. § 3049(10), permits policy cancellation for the failure to comply with reasonable loss control recommendations within 90 days after notice from the insurer.
The company has established that a loss control recommendation letter was issued to and received by the insured. Some of the issues identified in the recommendation letter required action to mitigate loss exposure. Some of the other issues consisted of requests for information necessary to permit evaluation of the exposure. A request for information is not a loss control recommendation as no action is being required that will reduce the likelihood of a loss. However, with respect to the issues for which the company required action for loss prevention, the company articulated loss control recommendations within the meaning of § 3049(10) and notified the insured that the failure to comply prior to a certain date could jeopardize the continuation of the policy.
There was disagreement at the hearing as to the meaning of one of the recommendations, and the company has not demonstrated that the recommendation went unfulfilled or was even reasonable. However, one of the other recommendations was reasonable and clearly conveyed to the insured. The recommendation was not completed within 90 days after notice and remained incomplete at the time of the hearing. The evidence presented demonstrates that the company has met the requirements for cancellation of this policy.

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