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Randy and Shanna Newcombe  v. Patrons Oxford Insurance Company

Held September 20, 2012– Docket No. INS-12-2062
Decision Issued:  October 1, 2012

The named insureds requested a hearing to contest the nonrenewal of their homeowners policy for the condition of the property and the failure to comply with loss control recommendations.  The evidence on the record demonstrates that one or more of the loss control recommendations was not completed more than a year after being conveyed, and that the cited conditions of the property remain.

Held: For the company. 24-A M.R.S.A. § 3051 permits an insurer to nonrenew a policy for a good faith reason that is related to the insurability of the property, or if based upon a ground for cancellation under section 3049; section 3049(10) permits cancellation if the insured fails to comply with reasonable loss control recommendations within 90 days after notice from the insurer. The company demonstrated that its loss control recommendations were reasonable and that one or more had not been completed within 90 days. It also established how the cited conditions affect the insurability of the property. Accordingly, the nonrenewal was permitted.