Maine High Court Finds No Advance Notice of Cancellation
The insurance policy expired on the 18th, and a $15 million fire occurred on the 19th and the court determined the notice of cancellation was not adequate.
February 25, 2021 at 12:17 PM
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The Maine Supreme Judicial Court reversed the ruling of the Business and Consumer Court of Maine and held that an insurer failed to adequately inform a wood pellet mill operator that it was not renewing its coverage in connection with payment for a fire that caused $15 million in damages. The case is Corinth Pellets, LLC v. Arch Specialty Insurance Co. et al.
Arch Capital Group Ltd. unit Arch Specialty Insurance Co. issued a surplus lines policy to Corinth Pellets LLC. The policy covered property loss, business interruption, and extra expenses for an initial term of January 2017 to January 2018. Coverage was subsequently extended for three consecutive three-month terms, to September 18, 2018.
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