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Jeffrey & Corina Hamlin v. Teachers Insurance Company

Held May 15, 2012– Docket No. INS-12-2037
Decision Issued:  May 17, 2012

The named insured requested a hearing to contest the nonrenewal of the homeowners insurance policy because of a claim.  The company testified that the policy has an unacceptable loss history.

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. § 3051 specifies that “loss record” is not an acceptable explanation of nonrenewal. The company testified that the property has an unacceptable loss history, noting one loss that occurred in early 2011. The company failed to identify any factor beyond the fact that a loss had occurred as support of its action. Accordingly, nonrenewal of the policy for the cited reason is not permitted.