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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-06-2151 Decision
Jeanne Bradley v. State Farm Fire & Casualty Company
The insured requested a hearing following receipt of a notice of homeowners insurance coverage nonrenewal citing as the reasons for nonrenewal the insured’s loss history and the company’s inability to confirm that measures were taken to prevent past loss or have been subsequently taken to prevent future loss. At hearing, the company discussed the losses and maintained that they are a consequence of the insured’s negligence. The insured discussed the losses and disputed the company’s allegations.
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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