Archives: 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011| 2012

Melody Guest-Pickett v. Standard Fire Insurance Company
Docket No. INS-07-2102; Decision Issued: November 6, 2007.

The insured requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing as the reason for nonrenewal an increase in hazard presented by a daycare in the home. At hearing, the company provided a sworn statement explaining its rationale for the nonrenewal action. The insured provided a copy of the renewal policy she had received following receipt of the nonrenewal notice, and she testified that she believed that her policy had been reinstated.

Held: For the insured. The Superintendent has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 3054. Based upon the evidence presented, the Superintendent hereby concludes that the Company’s issuance of a full renewal offer to the insured reversed its earlier notice of intent not to renew.

Section 3054 permits the Superintendent to order the policy to continue in effect pending the hearing process. The coverage order contained in the Notice of Hearing and Procedural Order issued to both parties states that “pursuant to 24-A M.R.S.A. § 3054, the policy shall remain in force until this matter has been decided.” No action by the company was required by this Order, only an understanding that coverage must continue pending the outcome of the hearing. As the company attached no condition to the renewal policy, it is a complete policy renewal. Since the company has renewed the policy, the nonrenewal notice is ineffective. Accordingly, the merits of the company’s basis for this nonrenewal action will not be addressed.