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This proceeding arose upon a request for hearing made by Wilma Weare of Lebanon, ME, to contest the pending cancellation of automobile insurance coverage provided by North East Insurance Company. On November 13, 2002, the insurer mailed a notice of cancellation effective December 2, 2002 on policy number 02180075656, citing “nonpayment of premium” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2915 and 2920, North East Insurance Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on January 14, 2003 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. Staff representing North East Insurance Company appeared at the hearing. Wilma Weare neither appeared nor submitted sworn testimony to be entered into the record at the time of the hearing.

FINDINGS OF FACT

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

1. North East had issued this policy on September 2, 2002. Ms. Weare had a prior policy with North East with an effective date of August 17, 1999 that cancelled on November 8, 1999 for nonpayment of premium.
2. A notice of cancellation for nonpayment of premium was issued for the subject policy on November 13, 2002, to be effective December 2, 2002 if payment was not received. Payment was not received.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A. M.R.S.A. § 2914 permits an insurer to cancel a policy of this type for nonpayment of premium.

Ethel Potvin, Personal Lines Manager for North East Insurance Company, testified that a bill was sent on September 27, 2002 showing the premium of $91.49 was due. On October 14, 2002, a cancellation notice was issued to be effective November 4, 2002. Ms. Weare paid on October 21, 2002. The next premium bill was sent on October 28, 2002, and due on November 12, 2002. That premium was never received. Ms. Potvin did testify that Ms. Weare went into the agency after the December 2, 2002 cancellation date, requesting to be reinstated. North East offered to reinstate with six months payment in full. Ms. Weare did not accept that offer. As Ms. Weare neither appeared at the hearing nor submitted a sworn statement, no testimony was submitted on her behalf.

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

INDEX OF RECORD:
Exhibit 1 - Hearing request
Exhibit 2 - Notice of cancellation
Exhibit 3 - Proof of postal mailing
Exhibit 4 - Payment history

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is hereby approved. North East Insurance Company is directed to continue coverage under policy # 02180075656 until March 22, 2003 at 12:01 a.m. to allow Ms. Weare 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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