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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Hearing No. 2006-2057 Decision
Rakafet Kahn v. State Farm Fire & Casualty Company
Docket No. INS-06-2057, Decision Issued June 29, 2006.
The insured requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal citing the insured’s claim history and the company’s inability to confirm that measures have been implemented to prevent loss as the reasons for nonrenewal. At hearing, the company maintained that the insured’s loss history and failure to take measures to prevent repeated losses were directly related to the insurability of the risk. The insured disputed the company’s allegations.
Held: For the insured. 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.”
The company focused on the pattern of loss and argued that it was unable to confirm that the problem had been addressed. The company did not explain how it had attempted to ascertain whether appropriate loss mitigation repairs had been made. The insured was readily able to supply invoices to demonstrate most of the work performed. Although a complete repair may have been needed prior to when such repair was made, the evidence shows that the area was not neglected. As the problem has now been completely fixed, there is no reason to expect such losses to continue in the future.
Last Updated: August 22, 2012
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