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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-08-2126 Decision
Donald & Chiumon Grover v. Concord General Mutual Insurance Company
Held January 14, 2009 – Docket No. INS-08-2126
The insured requested a hearing to protest the company’s cancellation of a homeowners policy for material misrepresentation in the application. The company established that the application for insurance stated that the insured did not own any animals – it did not disclose the insured’s dog, which is a breed of concern to the company and which requires a closer review.
Held: For the company. Although the insured testified that he never denied having a dog, the application was signed by the insured/applicant in the section declaring that the applicant has read the application and declares that information contained therein is complete and correct. Even if incorrect information is unintentional, the signature establishes it as a misrepresentation and inducement for the insurer to issue the policy. An omission is material if it could reasonably be considered as affecting the insurer’s decision to enter into the contract, or its evaluation of the degree or character of the risk, or its calculation of the premium to be charged.
Last Updated: January 16, 2014
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