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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-11-2028 Decision
Jane Peasley v. Allstate Insurance Company
Held May 11, 2011 – Docket No. INS-11-2028
The named insured requested a hearing to contest the nonrenewal of homeowners insurance for Town Class 10 - inadequate or unavailable fire department service. The company has insured the property for 27 years, with no changes in its proximity to the fire department or the services provided. The company argued that Town Class 10 properties are not acceptable insurable risks, and just recently determined that this property is more than five miles from the fire station.
Held: For the insured. 24-A M.R.S.A. § 3051 allows nonrenewal if based upon a reason that is in good faith and related to the insurability of the property. While the distance to the fire station can be an underwriting consideration, the company’s argument that this property located 5 ½ miles from the fire station is uninsurable because of that distance is untenable. All of the Allstate companies writing homeowners policies have rates for class 10 exposures, and one program adjusts the rate according to how much the distance exceeds the standard five miles, thus not all class 10 properties are uninsurable. As the reason for nonrenewal of this property is not in good faith, the nonrenewal action is not permitted.
Last Updated: August 22, 2012
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