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FTZ Land & Property Maintenance v. Citizens Insurance Company of America

Held December 22, 2011 – Docket No. INS-11-2114
Decision Issued:  December 29, 2011

The named insured requested a hearing to contest the cancellation of a businessowners policy for nonpayment of premium.  The company failed to appear at the hearing or submit a sworn statement in lieu of appearance.

Held: For the insured. 24-A M.R.S.A. § 3007 places the burden of proof upon the insurer to establish its reason for cancellation and its compliance with applicable statutory requirements.  As the company failed to appear in person or to submit a properly sworn statement in lieu of appearance, the cancellation action was disallowed by default.

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