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Beth Cella v. State Farm Fire and Casualty Company
Docket No. INS-06-2125, Decision Issued November 14, 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 maintained that one of the insured’s dogs presents a liability exposure increase because of an incident. The insured disputed that any incident with the dog occurred.

Held: For the insured. Title 24-A M.R.S.A. § 3049(9) permits an insurer to cancel a policy for a loss occasioned by a dog bite unless, after notice of cancellation or nonrenewal is received, the insured removes the dog. However, the company has not demonstrated that one of the insured’s dogs bit anyone. As its evidence, the company relied solely upon the questionable statements of others, and the insured has maintained that the allegations are not true.
In addition, it is unclear whether the policy at issue contains the cancellation ground of § 3049(9). The company submitted a generic policy that did not include the applicable cancellation ground, and the company did not offer any declarations pages to indicate any amendments. The company’s statement also failed to identify the forms and endorsements issued. Accordingly, the company did not demonstrate that its reason for cancellation was among the policy’s permitted cancellation grounds. See Bureau of Insurance Rule Chapter 355 § 7(C)(2). The company has not demonstrated that it may cancel this policy.