The Maine Bureau of Insurance published a bulletin reminding insurers that they may only cancel or nonrenew a policy under certain conditions specified in Maine insurance law.
The Department has received reports that some homeowners, renters, and personal auto policies have been nonrenewed because an insurer’s relationship with a producer ended. The Bureau stresses that this is not a permissible reason for nonrenewal.
Permissible reasons for nonrenewal can be found in the Maine Automobile Insurance Cancellation Control Act and the Maine Property Cancellation Control Act. These include things like nonpayment of premium, conviction of the named insured of a crime, discovery or fraud, physical changes in the insured property that makes the property uninsurable, etc.
An insured’s producer being terminated by the insurer is not sufficient grounds for nonrenewal of a policy. The producer may offer the insured alternate coverage with a different insurer, but the insured should still have the right to renew coverage with their original insurer.
The bulletin can be found here.