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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-11-2024 Decision
Andra Farrell and Chad and Melissa Wilmot v. MMG Insurance Company
Held May 17, 2011 – Docket No. INS-11-2024
The named insured requested a hearing to contest the nonrenewal of the homeowners policy for related water damage and mold losses that had occurred. The company demonstrated that two similar losses had occurred but failed to establish that continuing similar losses are likely.
Held: For the insured. 24-A M.R.S.A. § 3051 permits nonrenewal of this type of policy for a reason that is in good faith and related to the insurability of the property. An insurer cannot renew solely because losses have occurred, but may nonrenew if the cause or nature of the claims is such that similar or continued future claims are likely, and that concept is articulated in the reason given for nonrenewal. In this case, although two similar claims have occurred, all the original plumbing in the home has been replaced, therefore it is unlikely that another such loss will occur.
Last Updated: August 22, 2012
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