Sec. 1. 24-A MRSA §3051, as amended by PL 1979, c. 347, §12, is further amended to read:

§3051. Notice of intent

No An insurer shall may not fail to renew a policy except by notice to the insured as provided in this subchapter. A notice of intention not to renew shall is not be effective unless received by the named insured at least 30 days prior to the expiration date of the policy. A post-office department post office certificate of mailing to the named insured at his the named insured's last known address shall be is conclusive proof of receipt on the 3rd calendar day after mailing. The reason shall must accompany the notice of intent not to renew, together with notification of the right to apply for a hearing before the Superintendent of Insurance within 30 days as provided.

The reason or reasons for the intended nonrenewal action shall must accompany the notice of intent not to renew and the reason or reasons shall must be explicit. Explanations such as "underwriting reasons," "underwriting experience," "loss record," "location of risk," "credit report" and similar insurance terms are not by themselves acceptable explanations of an insurer's intended nonrenewal of a policy insuring property of the kind defined in section 3048. If the intended nonrenewal is based in whole or in part on the reason that repairs are necessary to maintain the insurability of the property, then the policy may be nonrenewed in accordance with this subchapter only if prior to issuing the notice of intent not to renew the insurer has provided the insured with a detailed written explanation of the necessary repairs, the insurer has permitted a minimum of 4 months for the insured to complete the repairs and the insured has failed to complete the repairs. The reason for nonrenewal shall must be a good faith reason and rationally related to the insurability of the property.

This section shall does not apply:

1. If the insurer has manifested its willingness to renew; or

2. If the insured fails to pay any premium due or any advance premium required by the insurer for renewal.

Sec. 2. 24-A MRSA §3054, as amended by PL 1989, c. 172, §8, is further amended to read:

§3054. Hearing before Superintendent of Insurance