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Drexell White & Gayle Koyanagi v. Nofolk & Dedham Mutual Fire Insurance Company

Held January 17, 2008 - Docket No. INS-07-2130
Decision Issued: January 24, 2008.

The insureds requested a hearing following receipt of a notice of nonrenewal of their homeowners policy citing loss history. At hearing, the company indicated that the nonrenewal action was actually due to the incomplete construction and lack of occupancy of the dwelling that was being rebuilt.

Held: For the insured. The Maine Property Insurance Cancellation Control Act stipulates that the notice of nonrenewal shall inform the insured of the reason for the action, and that the reason must be explicit. It further states that reasons such as “loss record” and other underwriting terms are not by themselves acceptable explanations of the intent not to renew. The stated reason alone was not acceptable, nor was it explicit, as the company offered a different reason at the hearing.