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Andrew and Theresa Rush v. Amica Mutual Insurance Company

Held March 20, 2012 – Docket No. INS-12-2018
Decision Issued:  April 4, 2012

The named insured requested a hearing to contest the nonrenewal of a homeowners policy for the increased exposure to loss presented by a specified activity in the home, and also due to loss frequency.  The company demonstrated that the cited activity increased the risk of loss from several covered perils.

Held: For the company. At the hearing, the company argued that the insured’s loss frequency was unsustainable as the company could not charge an adequate premium for the increased and continued likelihood of continuing losses. As the company did not articulate the rate adequacy issue in its notice of nonrenewal, that reason was not allowed. However, the company did document that the cited activity being undertaken by the insureds increased the risk of loss covered by the policy, and was therefore a reason in good faith and related to the insurability of the property, as required by 24-A M.R.S.A. § 3051.