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Corey & Michelle Porter v. State Farm Fire and Casualty Company

Held April 4, 2008 - Docket No. INS-08-2019
Decision Issued: May 2, 2008

The insureds requested a hearing to contest nonrenewal of their homeowners insurance due to two fire losses.

Held: For the insured. The Maine Property Insurance Cancellation Control Act requires the reason accompanying the notice of the intended nonrenewal to be explicit. While the stated reason merely listed two losses, State Farm argued at hearing that it was the insureds’ failure to exercise due care or implement loss prevention measures that was the reason for the nonrenewal. As this reason was not conveyed by the notice of nonrenewal, the company is unable to rely upon it to support nonrenewal. As the reason only notified the insured that the policy was not being renewed due to two losses, which is not a permitted reason under section 3051, the nonrenewal action was denied.