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Theron & Suzanne Kelley v. MMG Insurance Company

Held February 12, 2008 - Docket No. INS-08-2004
Decision Issued: February 22, 2008

The insured requested a hearing to contest the nonrenewal of a homeowners policy due to the number and nature of continuing related losses, citing two specific losses. At the hearing, the company maintained that the losses were identical in nature and likely to continue.

Held: For the company. Although the applicable statute, 24-A M.R.S.A. § 3051, states that “loss record” by itself is not an acceptable reason for nonrenewal, the company’s stated reason was not simply that losses had occurred, but that those losses were continuing and related in nature. 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, and the company demonstrated that the referenced losses were causally related and likely to continue.