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

Alan Brown v. Holyoke Mutual Insurance Company

Docket No. INS-06-2093, Decision Issued September 25, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance policy cancellation citing the failure to comply with loss control recommendations and the failure to provide underwriting information as the reasons for cancellation. At hearing, the company’s witness testified that the company issued a recommendation letter notifying the insured of the recommendations. The insured acknowledged receipt of the recommendations and discussed his responses to them.

Held: For the insured. 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. A company is limited, however, to the cancellation grounds that appear in its contract. See Bureau of Insurance Rule Chapter 355 (7)(C)(2).

The policy issued to the insured includes a form which amends, among other provisions, the cancellation section of the policy. However, this form predates the enactment of § 3049(10). Since the policy does not permit cancellation for the insured’s failure to comply with reasonable loss control recommendations within 90 days after notice, the company may not use this basis to cancel the policy.