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This proceeding arose upon a request for hearing made by John Babine of Plymouth, ME, to contest the pending cancellation of automobile insurance coverage provided to him by Hartford Accident & Indemnity Company. On October 16, 2002, the insurer mailed a notice of cancellation effective November 11, 2002 on policy number 48 PH 375186, citing Mark Dunlop’s June 2, 2002 and current license suspension as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 2920, Hartford Accident & Indemnity Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on December 11, 2002 with Connie Mayette 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. Staff representing Hartford Accident & Indemnity Company submitted a sworn statement in lieu of appearance at the hearing. The hearing had originally been scheduled for December 4, 2002, but Mrs. Babine called and requested a continuance on December 3, 2002, to allow Mr. and Mrs. Babine the opportunity to either attend or submit a sworn statement in lieu of appearance. Although the continuance was granted to accommodate the insured, neither Mr. nor Mrs. Babine appeared at the hearing or submitted a statement.

Krys Szczypinski, Senior Consultant of Hartford’s Consumer Affairs Department, stated in her affidavit that an accident occurred on June 15, 2001, with Mark Dunlop as a driver of the insured vehicle. She stated that he was not listed on the policy at the time. According to her testimony, Mark Dunlop was added to the renewal policy after the policyholder failed twice to respond to requests for information regarding his status.

Ms. Szczypinski testified that Mrs. Babine had indicated to them on October 2, 2002, that her son, Mark Dunlop, should remain on the policy, and provided his driver’s license number. The company testimony indicated that a cancellation was processed as soon as they received the motor vehicle record, which was submitted as evidence.

The motor vehicle record for Mark Dunlop shows a suspension effective June 2, 2002 for failure to file insurance. The total motor vehicle record indicates that a financial responsibility filing has been required since March 5, 2001. There is also a suspension effective September 13, 2002 for operating after suspension.

Title 24-A, M.R.S.A. § 2914 (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." None of the exceptions apply to either of the suspensions, as neither are first or second suspensions of a provisional license, nor are they for illegal transportation of liquor by a minor. Both the June and September suspensions fall within the time requirements, and the company testimony indicates that Mrs. Babine requested to keep her son on the policy and provided the information for the insurer to obtain his motor vehicle record. Without testimony from the policyholder regarding his driving status, it appears that Mark Dunlop is a customary operator of the vehicles insured under the policy, as he has had an accident with an insured vehicle and his mother requested his inclusion on the policy.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. Hartford Accident & Indemnity Company 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 Hartford Accident & Indemnity Company has established adequate grounds for policy cancellation.

INDEX OF RECORD:
Exhibit 1 – Request for Driver Information
Exhibit 2 – Customer Service File Contact
Exhibit 3 – Mark Dunlop’s MVR
Exhibit 4 – Postal Proof of Mailing
Exhibit 5 – Copy of Policy
Exhibit 6 - Affidavit of Krys Szczypinski

Order and Notice of Appeal Rights

The intended termination is hereby approved. Hartford Accident & Indemnity Company is directed to continue coverage under policy #48PH375186 until January 31, 2003 at 12:01 a.m., to provide an opportunity for John Babine 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 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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