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This proceeding arose upon a request for hearing made by Donna Maguire of Sanford, ME, to contest the pending nonrenewal of automobile insurance coverage provided by Concord General Mutual Insurance Company. On October 15, 2002, the insurer mailed a notice of nonrenewal effective December 19, 2002 on policy number B068124, citing “Insured’s 2 accidents, each over $1,000: 9/12/01 and 11/19/01” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Concord General Mutual Insurance Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on December 17, 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. The burden of proof lay with the insurer. Concord General Mutual Insurance Company submitted a sworn statement in lieu of appearing at the hearing. Donna Maguire represented herself at the hearing.

FINDINGS OF FACT

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

1. Concord General Mutual Insurance Company has insured Donna Maguire’s vehicles since 1986. The current policy term expires December 19, 2002.
2. Concord General Mutual Insurance Company has paid for the following accidents involving Donna Maguire as the driver:
   9/12/01 Insured’s foot came off the brake and hit the claimant, who was in front of the insured. Concord paid a total of $4,073.63.
   11/19/01 Insured was pulling out of street in front of other vehicle, other vehicle hit her and pushed her into telephone pole and then other vehicle hit her and knocked her into another pole. Concord paid a total of $6,842.98.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. §2916-A permits nonrenewal for specific accidents or convictions which occurred during the 36-month period preceding the yearly anniversary date of the policy. Subsection 2 provides the following requirements:

“2. Accidents. When a named insured or any other person who operates a motor vehicle insured under the policy is individually or are aggregately involved in 2 or more vehicle accidents while operating a motor vehicle insured under the policy, resulting in either personal injury or property damage in excess of the amount defined as a reportable accident under Title 29-A, section 2251.subsection 1.” (That amount currently is $1000.)

The statute also provides four exceptions, stating that an occurrence is not considered an accident when:

• The vehicle was struck from the rear;
• The vehicle was struck while parked;
• Only the operator of the other vehicle was convicted of a crime, offense or violation contributing to the accident; or
• The insured or insurer was reimbursed by or on behalf of the person responsible for the accident, or has a judgment against that person.

Toni J. Spiegel, Personal Lines Underwriter for Concord General Mutual Insurance Company testified in her affidavit that Donna Maguire had two accidents exceeding the $1000 threshold while operating a vehicle insured under the policy within the prescribed time frame. Loss records were submitted to demonstrate the specifics of those losses.

Donna Maguire testified that the accident on 9/12/2001 occurred the day following the terrorists attacks on the Twin Towers. She is not disputing the accident occurred but asked that Concord excuse the accident as it was a difficult day for everyone.

Ms. Maguire disputes that the second accident was her fault. She stated that she was stopped at an intersection when a speeding white truck pulled out. She stated that she did not see any vehicles when she proceeded to go.

The governing statute provides the four exceptions stated above, none of which fit either of the two described losses.

A review of the policy contract which was submitted by the insurer demonstrates that the Insuring Agreement, on page 1 of the Personal Automobile Policy, states: “We will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident..... We will settle or defend, as we consider appropriate, any claim or suit asking for these damages.” The policy contract allows the insurer to decide whether to pay a claim brought against the policy by a third party, and what amount to pay for that claim. The contract does not provide for the insured to decide how or when to settle. Therefore, the insurer was within its contractual rights when it settled both of these claims.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. Concord General Mutual 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 Concord General Mutual Insurance Company has established adequate grounds for policy nonrenewal.

INDEX OF RECORD:
Exhibit 1 - sworn affidavit
Exhibit 2 - loss records for both accidents
Exhibit 3 - request for the hearing
Exhibit 4 - notice of nonrenewal
Exhibit 5 - policy

ORDER AND NOTICE OF APPEAL RIGHTS

The intended nonrenewal is hereby approved. Concord General Mutual Insurance Company is directed to continue coverage under policy # B068124 until March 22, 2003 at 12:01 a.m. to allow Donna Maguire 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 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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