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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-06-2129 Decision
Larry & Candice Jipson v. MMG Insurance Company
The insured requested a hearing following receipt of a notice of homeowners insurance policy cancellation citing the failure to comply with loss control recommendations as the reason for cancellation. At hearing, the company maintained that a loss control recommendation letter had been issued that provided a deadline for compliance. The insured discussed the recommendations and the responses to them.
Held: For the insured. Although the Maine
Property Insurance Cancellation Control Act, in 24-A M.R.S.A. §
3049(10), permits cancellation if the insured fails to comply with reasonable
loss control recommendations within 90 days after notice from the insurer,
this particular policy does not mirror the statute. Instead, the policy
permits cancellation for “your failure to comply with reasonable
loss control recommendations within 90 days after you receive from us
our intent to cancel the policy.” Under the wording of the policy,
the 90-day period to comply with the recommendations starts after the
insured receives notice of the company’s intent to cancel the
policy. An insurer is free to establish terms in its policy that are
more favorable to the insured than what is provided in the statute.
However, the insurer is then bound by such terms and unable to rely
upon the actual statutory language in a cancellation action.
Last Updated: August 22, 2012
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