Archives: 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008

On October 9, 2002, the Bureau of Insurance received a hearing request from Charles Smith. On September 16, 2002, Patrons Oxford Insurance Company mailed a notice of nonrenewal effective October 26, 2002 on policy # AUT529250. The notice listed Melissa Smith’s 3-27-01 speed 52/40, 1-28-02 speed 84/65, 6-13-02 speed 85-65 as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Patrons Oxford Insurance Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on November 7, 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 nonrenewal. Staff representing Patrons Oxford Insurance Company appeared at the hearing. Charles Smith represented himself at the hearing.

Findings of Fact

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

1. Patrons Oxford Insurance Company has insured Mr. Smith’s vehicles since 10/26/01, when the agency rolled over a book of business from CGU.
2. The Patrons policy insured three vehicles along with the three drivers: Charles Smith, Sue Smith and Melissa Smith.
3. Through an underwriting check at renewal, it was discovered that Melissa had 3 speeding violations within the 36-month period preceding the yearly anniversary date of the policy.
4. Mr. Smith submitted a voter registration receipt that indicates Melissa is now a resident of Cheslea, MA. The receipt also indicates Melissa now holds a State of Massachusetts driver’s license.
5. Mr. Smith stated that he contacted the agency to tell them Melissa no longer resides in his household and asked to have her deleted from his policy. He testified all three vehicles are at his residence and Melissa will not operating them.

Analysis and Conclusion of Law

Title 24-A, M.R.S.A. § 2916-A permits an insurer to nonrenew an automobile insurance policy if specified convictions or accidents have occurred during the 36-month period preceding the yearly anniversary date of the policy. Subsection 1. paragraph D of this section permits nonrenewal when a named insured or an operator who either resides in the same household or customarily operates an automobile insured under the policy is convicted of operating a motor vehicle in excess of the speed limit on three or more occasions.

Cheryl Pelletier, Vice-President of Marketing/Underwriting for Patrons Oxford Insurance Company testified that at the time of renewal, the underwriter obtained a motor vehicle report on Melissa Smith and realized she had two new speedings on 1/28/02 and 6/13/02 along with failure to provide license on 6/13/02 and the previous speeding of 3/27/01. Ms. Pelletier stated that the underwriter called the violation department at Motor Vehicle to verify the three speedings.

Mr. Smith testified that he does not refute the speedings, but he was not aware of the failure to provide license violation. He further testified that Melissa no longer resides at his residence. He contacted the agent to inform the company of this change and to have her deleted from his policy. He indicated that he felt if the agent had done this, the hearing could have been avoided.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A.§ 2920. Patrons Oxford Insurance Company bears the burden of proof for establishing that the statutory grounds for policy nonrenewal exist. Based on the evidence presented at the hearing, the Superintendent hereby concludes that Patrons Oxford Insurance Company has not established adequate grounds for policy nonrenewal. Although they did establish that Melissa Smith has three speeding violations during the 36-months preceding the anniversary date of this policy, it is clear that Melissa Smith now resides in Massachusetts and has obtained a driver’s license in that state. Therefore, Melissa is neither a resident of the household, nor does she customarily operate a vehicle insured under the policy.

INDEX OF RECORD:
Exhibit 1-Copy of the policy
Exhibit 2-Motor vehicle report for Melissa Smith
Exhibit 3-Copy of the notice
Exhibit 4-Voter Registration Receipt
Exhibit 5- Proof of mailing

Order and Notice of Appeal Rights

The intended nonrenewal is not approved. Patrons Oxford Insurance Company is hereby directed to renew policy #AUT529250 on the same terms as the expiring policy.

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 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.

Return to Cancellation / Nonrenewal Hearing Decisions