Cancellation / Nonrenewal : Docket No. {$docket_number} Decision : Bureau of Insurance

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Jeffery and Samantha Gardner v. Metropolitan Property & Casualty Insurance Company

Held November 9, 2011 – Docket No. INS-11-2092
Decision Issued: December 1, 2011

The named insured requested a hearing to contest the nonrenewal of homeowners policy due to two cited losses. The company argued that the loss frequency, two losses in five years, is excessive.

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.A. § 3051 specifies that “loss record” is not an acceptable explanation of nonrenewal. The company testified that the property no longer meets its underwriting guidelines because losses have occurred. The company failed to identify any factor to support the action that is not expressly prohibited by statute. Accordingly, nonrenewal of the policy for the cited reason is not permitted.

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