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Georgette Roy v. Hingham Mutual Fire Insurance Company

Held February 8, 2011 - Docket No. INS-11-2003
Decision Issued: February 25, 2011

The named insured requested a hearing to contest the cancellation of homeowners insurance for failure to comply with loss control recommendations. 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 is not effective unless received by the named insured at least 20 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 insured was given only 19 full days of notice before cancellation, not 20 days as required by § 3050. Therefore, the cancellation notice is void for lack of compliance with this section. See Valley Forge Insurance Co. v. Concord Group Insurance Co., 623 A.2d 163 (Me. 1993). As the notice is not effective, whether the reason given for cancellation satisfies the requirements of § 3019(10) will not be addressed.

 

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