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This proceeding arose upon a request for hearing made by Charles & Linda Gokas of Dexter, ME, to contest the pending cancellation of automobile insurance coverage provided by York Insurance Company of Maine. On October 3, 2002, the insurer mailed a notice of cancellation effective October 30, 2002 on policy number YMZ8120676, citing “motor vehicle record for Chaz Gokas shows: 1-25-02 license suspension to 7-24-03-*Pass<21 +180 blood alcohol content .00 plus violation, 3-25-02 operating under the influence of liquor violation, and 1-25-02 license suspension to indefinite criminal violation operating under the influence of liquor” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2915 and 2920, York Insurance Company of Maine provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on November 5, 2002 with Mary Ellen Albert sitting as designated hearing officer pursuant to 24-A M.R.S.A. §§ 210 and 2920. The purpose of the hearing was limited to establishing the existence of proof or evidence given by the insurer to support its reason for policy cancellation. York Insurance Company of Maine submitted a sworn statement in lieu of appearing at the hearing. Charles Gokas represented himself at the hearing.

Findings of Fact

The following facts have been proven by a preponderance of evidence submitted:

1. York Insurance Company (formerly CU York Insurance Company) has insured Mr. Gokas’ vehicles for at least 15 years.
2. The expiring policy is effective from 12/19/01 to 12/19/02.
3. Chaz Gokas’ motor vehicle record reflects a suspension effective 1/25/02 to 7/24/03 for operating under the influence of liquor.

Analysis and Conclusion of Law

Title 24-A, M.R.S.A.§ 2914-A(4) permits cancellation if “the named insured or any operator who either resides in the same household or customarily operates an automobile insured under the policy has a driver’s license suspended, other than a first or 2nd suspension under Title 29-A, section 2471, subsection 2 or section 2472, subsection 2, or a suspension under Title 28-A, section 2052, or revoked during the policy term or, if the policy is a renewal, during its term or the 180 days immediately preceding its effective date.”

Heather Rosewall, Personal Lines Senior Underwriter for York Insurance Company of Maine stated in her sworn affidavit that policy #YMZR680431 also canceled mid-term due to a named insured having a suspended license. However, Mr. Gokas did not request a hearing to contest the cancellation of this other policy, nor did Mr. Gokas refer to this policy during the hearing when the hearing officer read the statement into the record. Ms. Rosewall submitted a motor vehicle report for Chaz that indicates he is a member of the household.

The Maine motor vehicle report submitted by York Insurance Company of Maine states that Chaz’ license was suspended 1/25/02 to 7/24/03 for operating under the influence of liquor.

Mr. Gokas stated that he had received a letter from his agent informing him that the company was going to nonrenew his policy on December 11, 2002. This was followed by the cancellation notice effective October 30, 2002. Mr. Gokas felt this was improper notice, as the cancellation notice did not give sufficient time to find other coverage. He also argued that to his knowledge, his policy was with OneBeacon Insurance Company and he had not been notified that he was now insured with York Insurance Company of Maine. He also objected to the fact that his lien holder had been notified of this pending cancellation before the hearing outcome.

The cancellation notice issued to Mr. Gokas complied with the statutory notice requirements. Title 24-A, M.R.S.A. § 2915 requires 20 days notice to be given to the named insured and also to any loss payee named in the physical damage portion of the policy prior to cancellation. This requirement was met. The policy contract (Ex 1-page 13 of 18) also states under Form PP 03 05 08 86 Loss Payable Clause that the same cancellation notice will be given to the loss payee as to the named insured.

The Group name has been OneBeacon Insurance Companies, which is shown in the logo on all documents, including the notice of cancellation. The actual company name shown on the ID cards and policy is CU York Insurance Company.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. York Insurance Company of Maine bears the burden of proof for establishing that the statutory grounds for policy cancellation exist. Based on the evidence presented at the hearing, the Superintendent hereby concludes that York Insurance Company of Maine has established adequate grounds for policy cancellation.

INDEX OF RECORD:
Exhibit 1-copy of policy
Exhibit 2-proof of mailing
Exhibit 3-motor vehicle report for Chaz Gokas
Exhibit 4-request for hearing
Exhibit 5-copy of the notice
Exhibit 6-copy of agent’s letter
Exhibit 7-premium statement

Order and Notice of Appeal Rights

The intended cancellation is hereby approved. York Insurance Company of Maine is hereby directed to continue policy number YMZ8120676 until February 25, 2003 at 12:01 a.m. to allow Mr. Gokas time to obtain other coverage.

This Decision and Order is a final agency action within the meaning of the Maine Administrative Procedure Act. It is appealable to the Superior Court in the manner provided in Title 24-A M.R.S.A. § 236 and M.R. Civ. P. 80C. Any party to the hearing may initiate an appeal within 30 days after receipt of this notice. Any nonparty whose interests are substantially and directly affected may initiate an appeal within 40 days of the effective date of this Decision and Order.

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