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Elizabeth Dickerson and Guy Polyblank v. Providence Mutual Fire Insurance Company

Held March 25, 2010 – Docket No. INS-10-2015
Decision Issued: March 26, 2010

The named insured requested a hearing to contest the cancellation of a homeowners policy for nonpayment of premium. The company failed to provide notice in compliance with the Maine Property Insurance Cancellation Control Act.

Held: For the insured. In order for a cancellation notice to be effective, an insurer must meet the notice requirements of 24-A M.R.S.A. § 3050, which provides that a notice of cancellation for nonpayment of premium is not effective unless received by the named insured at least 10 days prior to the effective date of cancellation…” Section 3050 further states that a postal certificate of mailing to the named insured at the insured’s last known address is conclusive proof of receipt on the 5th calendar day after mailing.”

Based upon the postal certificate of mailing provided by the company, the insureds were given only 8 full days of notice before cancellation, not 10 days as required by § 3050. Therefore, the cancellation notice is void for lack of compliance with the notice requirement of § 3050. See Valley Forge Insurance Co. v. Concord Group Insurance Co., 623 A.2d 163 (Me. 1993). In addition, the notice failed to include the required notice of the insured’s right to request a hearing. As the notice is not effective, whether the reason given for cancellation satisfies the requirements of § 3049(1) will not be addressed.