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Arley and Rose McAdams v. Hingham Mutual Fire Insurance Company

Held December 2, 2013 – Docket No. INS-13-2116
Decision Issued:  December 9, 2013

The named insured requested a hearing to contest the cancellation of a homeowners policy for failure to comply with loss control recommendations.  The company failed to provide notice in compliance with the Maine Property Insurance Cancellation Control Act.
Held: For the insured. In order for a cancellation notice to be effective, an insurer must meet the notice requirements of 24-A M.R.S.A. § 3050, which provides that a notice of cancellation (for other than nonpayment of premium) is not effective unless received by the named insured at least 20 days prior to the effective date of cancellation…” Section 3050 further states that a postal certificate of mailing to the named insured at the insured’s last known address is conclusive proof of receipt on the 5th calendar day after mailing.”

Based upon the postal certificate of mailing provided by the company, the insureds were given 18 full days of notice before cancellation, not the 20 days as required by § 3050. Therefore, the cancellation notice is void for lack of compliance with the notice requirement of § 3050. See Valley Forge Insurance Co. v. Concord Group Insurance Co., 623 A.2d 163 (Me. 1993). As the notice is not effective, the merits of the reason given for cancellation were not addressed.

Last Updated: April 15, 2014