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Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-11-2033 Decision
Alfred Gerard Jr. and Janet Gerard v. Massachusetts Bay Insurance Company
Held May 18, 2011 – Docket No. INS-11-2033
The named insured requested a hearing to contest the nonrenewal of homeowners policy for an increase in hazard, changes in the property specifically due to two cited losses. The company argued that the changes in the property were the losses themselves, and that because of the losses, the property no longer met the company’s underwriting guidelines.
Held: For the insured. The Maine Property Insurance Cancellation Control Act permits nonrenewal of a policy for a reason that is “a good faith reason and related to the insurability of the property or a cancellation ground pursuant to section 3049.” 24-A M.R.S.A. § 3051 specifies that “loss record” is not an acceptable explanation of nonrenewal. Section 3054 further states that a “statement from the insurer that the risk does not meet the insurer’s underwriting guidelines alone is not considered sufficient proof or evidence that the reason for nonrenewal is in good faith and related to the insurability of the property.” The company testified that the property no longer meets its underwriting guidelines because losses have occurred. The company failed to identify any factor to support the action that is not expressly prohibited by statute. Accordingly, nonrenewal of the policy for the cited reason is not permitted.
Last Updated: August 22, 2012
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