3.__Exemptions.__This section does not apply to routinely scheduled increases in valuation under the policy based on inflation or to requests initiated by an insured to increase the stated insured value of a property.

SUMMARY

This bill prohibits an insurer from cancelling or refusing to issue or renew a property insurance policy subject to the Maine Revised Statutes, Title 24-A, chapter 41, subchapter 5, the so- called "Maine Property Insurance Cancellation Control Act," solely on the basis of the age of the dwelling. The bill prohibits an insurer from declining to insure a property subject to the Maine Property Insurance Cancellation Control Act on the basis that a previous owner of the property submitted claims for losses to the property. The bill prohibits insurers from increasing the stated value of a property insured under a policy governed by the Maine Property Insurance Cancellation Control Act at any time other than at renewal. The bill also requires insurers to provide notice to the named insured explaining the reason for any increase in premium associated with an increase in stated value and disclosing how an insured may obtain additional information that led to the increase in value. The bill requires an insurer to provide advance notice of needed property repairs to a policyholder and to allow for a reasonable time for the policyholder to complete the repairs before issuing a nonrenewal notice based on lack of necessary repairs for a property insurance policy subject to the Maine Property Insurance Cancellation Control Act. Finally, the bill amends the hearing section of the Maine Property Insurance Cancellation Control Act to clarify the proof required by an insurer to establish that its reason to nonrenew a policy is a good faith reason and rationally related to the insurability of the property.