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Stephen and Janet Smith v. Travelers Indemnity Company of America

Held August 4, 2009 – Docket No. INS-09-2073
Decision Issued: August 12, 2009

The insureds requested a hearing regarding the company’s nonrenewal of their homeowners policy for an unacceptable business exposure. The company provided double hearsay information that suggested the possibility of a business exposure, but failed to establish that a business is in fact operated at the insureds’ residence.

Held: For the insured. 24-A M.R.S.A. § 3054 requires the company to provide proof or evidence that its reason for nonrenewal is in good faith and related to the insurability of the property. As the company did not prove that a business exposure exists at the insured premises, the nonrenewal action is denied.