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Rodney & Marion Charrier v. Standard Fire Insurance Company
Docket No. INS-07-2124, Decision Issued January 8, 2008.

The insureds requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing the failure of the property to meet underwriting requirements and the lack of owner occupancy as the reasons for nonrenewal. At hearing, the company maintained that the named insureds live elsewhere and the property is occupied by someone else. The insureds did not appear at the hearing.

Held: For the insureds. The Maine Property Insurance Cancellation Control Act permits nonrenewal of a policy 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.” 24-A M.R.S.A. § 3054. Section 3054 further states that a “statement from the insurer that the risk does not meet the insurer’s underwriting guidelines alone is not considered sufficient proof or evidence.” The company is relying solely upon the inability of the dwelling to meet underwriting requirements as its basis for nonrenewal. It failed to explain how the occupancy of the dwelling by someone other than the named insured is related to insurability. Accordingly, approval for this nonrenewal action is denied.