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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-09-2110 Decision
Michael Mayo v. Nationwide Mutual Insurance Company
Held October 20, 2009 – Docket No. INS-09-2110
The insured requested a hearing regarding the nonrenewal of his homeowners policy due to the construction type of the home and failure to comply with recommendations. The company did not explain how the construction of the home was related to the insurability of the property, or establish that the recommendations were reasonable to prevent losses insured under the policy.
Held: For the insured. 24-A M.R.S.A. § 3051 requires an insurer to establish that its reason for nonrenewal is in good faith and related to the insurability of the property. The company provided no support for the reason relating to the construction type of the home other than a copy of its underwriting guidelines. 24-A M.R.S.A. § 3054 specifies that an insurer’s underwriting guidelines are not proof or evidence relating its reason to the insurability of the property. Section § 3049(10) permits cancellation and nonrenewal for failure to comply with reasonable loss control recommendations, but the company offered no argument to establish that its recommendations were reasonable in relation to the coverage under the policy, and also did not establish what coverage is provided.
Last Updated: August 22, 2012
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