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Arden & Liane Peach v. MMG Insurance Company

Held January 26, 2010 – Docket No. INS-10-2000
Decision Issued: February 12, 2010

The insureds requested a hearing to contest the nonrenewal of their homeowners insurance policy due to the number and nature of continuing related losses. The evidence on the record established that the company has paid three claims resulting from the same situation despite attempts by the insureds to address the issue.

Held: For the company. Although the Maine Property Insurance Cancellation Control Act specifies that “loss record” and similar insurance terms are not by themselves sufficient explanations of a company’s intent not to renew, the company’s reason was not just that losses occurred. The company’s reason was that the losses that had occurred were all related to the same condition and likely to recur. As this is a good faith reason that is related to the insurability of the property, the nonrenewal is permitted by Maine law.