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

Dana & Kathleen Moniz v. State Mutual Insurance Company

Docket No. INS-06-2108, Decision Issued October 20, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance cancellation citing a dog bite as the reason for cancellation. At hearing, the company testified that a dog bite loss had occurred. The insured maintained that it was a scratch, not a bite. They further argued that they had intended to compensate the injured party themselves but their agent encouraged them to file a claim instead.

Held: For the insured. Under the Maine Property Insurance Cancellation Control Act, 24-A M.R.S. A. §§ 3048-3059, a policy may be cancelled for a reason based upon one or more of the grounds permitted in § 3049. Section 3049(9) permits policy cancellation for a loss occasioned by a dog bite unless the insured removes the dog after the notice of cancellation or nonrenewal is received. However, a company is limited to using the cancellation grounds that appear in its contract. See Bureau of Insurance Rule Chapter 355 § 7(C)(2). This policy does not contain § 3049(9) as one of its permissible cancellation grounds. Thus, the company may not cancel the policy on this basis.