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Elizabeth McKenney v. State Farm Fire & Casualty Company
Docket No. INS-06-2039, Decision Issued May 10, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance policy nonrenewal citing the failure to comply with reasonable loss control recommendations within 90 days as the reason for nonrenewal. At hearing, the company alleged that it had made numerous inquiries into the status of certain repairs following a loss and that written loss control recommendations were issued. The company argued that the failure to address the issues left a heightened exposure to loss. The insured argued that she has been unable to make repairs due to certain conditions.

Held: For the company. The applicable statute, 24-A M.R.S.A. § 3051, provides that the “reason for nonrenewal must be a good faith reason and related to the insurability of the property or a ground for cancellation pursuant to section 3049.” Section 3049(10) permits policy cancellation for the failure to comply with reasonable loss control recommendations within 90 days after notice from the insurer.
The evidence presented demonstrates that reasonable loss control recommendations were received by the insured, and the insured was given more than the statutory amount of time to comply with them. The evidence further demonstrates that several of the recommendations were not complied with during the time period allowed, and they remained unfinished even at the hearing date. The company has established that the requirements of § 3049(10) were met, thus providing grounds for nonrenewal of this policy.

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