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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-06-2130 Decision
Milton & Judith Baird v. State Farm Fire and Casualty
The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing a change in the property that has resulted in the property becoming uninsurable as the reason for nonrenewal. At hearing, the company discussed the change and the insured discussed the company’s allegations.
Held: For the insured. Under 24-A M.R.S.A.
§ 3051, “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 3049(5) allows cancellation
for a physical change in the property that renders the property uninsurable.
The company’s reason for nonrenewal mirrored the language of section
3049(5), and accordingly, that is the nonrenewal standard applicable
to this case. In order to prevail, the company must demonstrate the
occurrence of a physical change that has rendered the property uninsurable.
The company did not present any argument that the property is now uninsurable,
and thus, it did not prove one required element of section 3049(5).
Last Updated: January 16, 2014
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