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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-13-2034 Decision

 

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John Parker, Kenneth Keene v. Liberty Insurance Corporation

Held June 6, 2013– Docket No. INS-13-2034
Decision Issued:  June 24, 2013

The named insured requested a hearing to contest the cancellation of a homeowners policy for material misrepresentation in the application regarding ongoing renovations.  The company failed to demonstrate that material misrepresentation occurred.

Held: For the insured. 24-A M.R.S. § 3049(3) permits cancellation upon discovery of fraud or material misrepresentation by the insured in obtaining the insurance. Although the company stated that it would not have written the policy if it had known the renovations would not be completed within six months, it could not identify the intended renovations as the representative taking the application had not documented them. The policyholder established that the renovations discussed with the agent were in fact completed. In addition, the company issued an unconditional reinstatement of the policy, and the agent notified the insured that the policy was reinstated and the hearing should be cancelled.

Last Updated: April 15, 2014