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Stacy and David Baker v. New England Guaranty Insurance Company
Docket No. INS-06-2135, Decision Issued December 12, 2006.

The insured requested a hearing following receipt of a notice of homeowners insurance policy cancellation citing the failure to comply with loss control recommendations as the reason for cancellation. At hearing, the company representative maintained that loss control recommendations had been issued to the insured and he submitted into evidence the inspection report that led to the issuance of the recommendations. The insured discussed the responses to the recommendations.

Held: For the insured. Although the Maine Property Insurance Cancellation Control Act, in 24-A M.R.S.A. § 3049(10), permits cancellation if the insured fails to comply with reasonable loss control recommendations within 90 days after notice from the insurer, this particular policy does not allow cancellation for such a reason. Accordingly, since the insured’s failure to comply with reasonable loss control recommendations within 90 days after notice is not included in the policy as one of its permissible cancellation grounds, the company is precluded from relying upon § 3049(10) in a cancellation action.