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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-10-2077 Decision
Theodore Cocco and Margaret Boyle v. NGM Insurance Company
Held November 10, 2010 - Docket No. INS-10-2077
The insureds requested a hearing to contest the company’s cancellation of their homeowners policy for failure to comply with recommendations. The company notified the insured of four conditions/concerns that required correction to continue coverage. The insured completed one recommendation and successfully refuted two others. For the fourth concern, the junked cars and metal scrap in the yard, the record showed that the insured may have removed some of what he considered to be junk, but he argued that the cleanup of the junk cannot be done in a short period of time.
Held: For the company. The Maine Property Insurance Cancellation Control Act allows cancellation if the insured fails to comply with reasonable loss control recommendations within 90 days after notice from the insurer. The policy provides liability coverage; therefore the accumulation of metal debris increases the exposure to loss. As the company did not specifically identify the items, any logical action taken by the insured to address the cited concern would have satisfied compliance for this proceeding. As the insured interpreted it as “junk” and indicated that junk still remains, this recommendation has not been completed within the 90 days, and the cancellation is permitted by Maine law.
Last Updated: January 16, 2014
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