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Star Wiegman v. Metropolitan Property & Casualty Insurance Company

Held March 6, 2012 – Docket No. INS-12-2011
Decision Issued:  March 13, 2012

The named insured requested a hearing to contest the nonrenewal of homeowners policy due to three cited losses.  The company argued that the loss frequency, three losses in three 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, and that the company’s reliance solely upon its underwriting guidelines is not a sufficient explanation of a nonrenewal. 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.

Last Updated: April 15, 2014