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Jon & Ola Brien v. New England Guaranty Insurance Company

Held September 28, 2011 – Docket No. INS-11-2071
Decision Issued:  October 14, 2011

The named insured requested a hearing to contest the nonrenewal of an automobile insurance policy for a material change in hazard regarding an additional vehicle and driver.  The company raised the issue of material misrepresentation at the hearing.

Held: For the insured. The Maine Automobile Insurance Cancellation Control Act (24-A M.R.S.A. §§ 2911 – 2924) allows nonrenewal due to a material change in the type of vehicle insured that so substantially increases the hazard insured against as to render the vehicle uninsurable or for a material misrepresentation affecting the policy. The company did not establish that there was a material change in the type of vehicle insured; additionally, the vehicle in question was no longer on the policy, which negated any potential reliance upon § 2916-A(3). The nonrenewal notice did not clearly articulate the material misrepresentation issue; therefore it was not considered.

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