Sherwood & J. Lorraine Libby v. Union Mutual Fire Insurance Company

Held March 16, 2012– Docket No. INS-12-2012
Decision Issued:  March 23, 2012

The personal representative of the named insured’s estate requested a hearing to contest the cancellation of fire insurance for nonpayment of premium.  The company demonstrated that the renewal premium was not paid before the cancellation date and that all statutory notice requirements were met.

Held: For the company. Maine law under 24-A M.R.S.A. § 3049(1) allows an insurer to cancel a policy if an insured fails to make a premium payment when due. The company demonstrated that the named insured was notified of the payment due prior to the due date, and no payment was received. A cancellation notice was properly issued to the named insured at the last known address and payment was not received before the cancellation date. Accordingly, the cancellation action is permitted.