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Mary Cahill and Kevin Nelson v. Union Mutual Fire Insurance Company

Held November 15, 2012 – Docket No. INS-12-2117
Decision Issued:  December 4, 2012

The named insured requested a hearing to contest the nonrenewal of a dwelling fire policy for incomplete construction and lack of occupancy.  The evidence at the hearing revealed the property is an incomplete three car garage, with the potential for living space above. It is not a residence at this time and therefore the dwelling fire policy insuring it is not subject to the Maine Property Cancellation Control Act.

Held: For the company. The Control Act provides the right to a hearing for both cancellation and nonrenewal of policies under its jurisdiction. Because the property is not a residence, the nonrenewal of the policy is subject to 24-A M.R.S. § 3007, which does not provide the right to a hearing for nonrenewal actions. This section does not restrict an insurer’s ability to nonrenew a policy. The company demonstrated that it complied with statutory notice requirements, therefore the nonrenewal is permitted.

Last Updated: April 15, 2014