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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-14-2016 Decision
Marjorie Robinson v. Providence Mutual Fire Insurance Company
Held March 6, 2014 – Docket No. INS-14-2016
The named insured requested a hearing to contest the nonrenewal of homeowners policy due to two losses in a policy term. The company argued that the loss history is a good faith reason and permitted by its underwriting guidelines.
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
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