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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-06-2121 Decision
Kathy & Jeffrey Young v. MMG Insurance Company
The insured requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal citing the number and nature of continuing losses as the reason for nonrenewal. At hearing, the company maintained that the losses would continue if the underlying issues were not corrected. The insured discussed the measures that have been taken in response to the losses.
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.” Section
3051 also states that “loss record” by itself is not an
acceptable reason for nonrenewal. A company must demonstrate a nexus
or pattern to illustrate that the cause or nature of past claims is
such that similar or continued future claims are likely.
Last Updated: August 22, 2012
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