Skip Maine state header navigation
Skip All Navigation
|Home | Contact Us | Careers | Calendar|
Maine.gov > PFR Home > Insurance Regulation > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-11-2061 Decision
Robert Harmon, Jr. v. MMG Insurance Company
Held August 23, 2011 – Docket No. INS-11-2061
The named insured requested a hearing to contest the nonrenewal of his homeowners policy because the frequency of losses made it ineligible for a homeowners policy, identifying three water damage losses.
Held: For the insured. The Maine Property Insurance Cancellation Control Act requires the reason accompanying the notice of the intended nonrenewal to be explicit, and establishes that reliance upon “underwriting reasons” or “loss record” are insufficient reasons for nonrenewal. MMG argued at hearing that it was the likelihood of continuing similar losses stemming from the plumbing system that was the reason for the nonrenewal. As this reason was not conveyed by the notice of nonrenewal, the company is unable to rely upon it to support nonrenewal. As the reason only notified the insured that the policy was not being renewed because of eligibility and loss frequency, which are not permitted reasons under section 3051, the nonrenewal action was denied.
Last Updated: August 22, 2012
|Copyright © 2006 All rights reserved.|