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Joanne & Mark Luce v. MMG Insurance Company
Docket No. INS-06-2013, Decision Issued March 7, 2006.

The insureds requested a hearing following receipt of a notice of homeowners insurance nonrenewal citing the operation of a business on the property as the reason for nonrenewal. At hearing, the company discussed the business and its associated liability risks. The insureds did not appear at the hearing, nor did they submit a statement in lieu of appearance.

Held: For the company. The company has established the existence of the business and cited several issues relating to the liability exposure it presents. The policy provides liability coverage and despite the policy’s business pursuits exclusion, the company would be required to provide a defense for a lawsuit against the insureds should an injury stemming from the business activity occur. The company has demonstrated that this exposure is a good faith reason related to the insurability of the property.

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