Skip Maine state header navigation
Skip All Navigation
|Home | Contact Us | Careers | Calendar|
Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-06-2142 Decision
Stephen & Joan Castellano v. Vermont Mutual Insurance
The insureds requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing an increase in liability exposure as the reason for nonrenewal. At hearing, the company maintained that a resident of the insureds’ household presents a liability increase due to past events. The insureds maintained that the person mentioned in the notice does not live in their home.
Held: For the insureds. Title 24-A M.R.S.A.
§ 3051 permits policy nonrenewal for a reason that is a “good
faith reason and related to the insurability of the property or a cancellation
ground pursuant to section 3049.” Section 3051 also requires that
the reason or reasons for nonrenewal be explicitly stated in the notice
of nonrenewal. This nonrenewal notice is ambiguous and based upon the
wording there are several possible interpretations. Because it is unclear
what the precise reason for the company’s action is, it is arguable
that the company did not provide adequate notice under § 3051 of
its reason for nonrenewal. However, we shall address each possible interpretation.
Last Updated: August 22, 2012
|Copyright © 2006 All rights reserved.|