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This proceeding arose upon a request for hearing made by Richard & Gina Kelley of Portland, ME to contest the pending cancellation of automobile insurance coverage provided by Hanover Insurance Company. On November 22, 2002, the insurer mailed a notice of cancellation effective December 18, 2002 on policy number ATP5292029, citing, “canceling the above auto policy mid term in accordance with Maine Statute (24-A 2914) specifically because a recent motor vehicle report revealed that Kristina Kelley, a customary operator on the policy currently has a suspended license; 1/17/02” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Hanover 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 15, 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 Hanover Insurance Company submitted a sworn statement in lieu of appearing at the hearing. Gina Kelley represented herself at the hearing.

FINDINGS OF FACT

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

1. Hanover Insurance Company has insured Richard & Gina Kelley’s vehicles for approximately three years. The current policy term is January 4, 2002 to January 4, 2003.
2. Hanover Insurance Company obtained motor vehicle reports on the household drivers. At this time, it was discovered that Kristina Kelley had a license suspension January 17, 2002 for blood alcohol content .00 plus and was subsequently convicted of operating under the influence. Her license is still currently suspended.

ANALYSIS AND CONCLUSION OF LAW

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.”

Kate Anderson, Personal Lines Underwriter for Hanover Insurance, stated in her affidavit that Kristina Kelley has a license suspension permitting them to cancel the policy. She stated that Kristina is still a member of the household located at 124 Pineloch Drive, Portland, ME. She submitted a motor vehicle record demonstrating the January 17, 2002 suspension and reflecting the same address as the policy.

Gina Kelley testified that when Kristina purchased her own vehicle, a Honda Civic, she requested that Kristina have her own policy. She stated that her agent told her she would check with several companies and get back to her with a quote. The agent called her back and informed her that the best quote was with Hanover Insurance Company. The agent issued a separate policy (ANP5690698) under the same account number. She did inform Mrs. Kelley that because Kristina was under 18, the policy had to be issued in Gina and Richard’s names. Mrs. Kelley further stated that she told the agent that now that Kristina had her own vehicle, she did not want to be responsible if she had any violations. She stated she felt she was more in control when Kristina was operating one of her vehicles. Policy #ANP5690698 cancelled December 22, 2002. Mrs. Kelley did not have an issue with that policy being cancelled but felt they should not be allowed to cancel the policy # ATP5292029.

Mrs. Kelley’s testimony focused on her request for the separate policy as she believed that Kristina being on a separate policy would have made a difference. However, this is irrelevant as the residency is the issue.

Mrs. Kelley also testified that she believes Kristina’s vehicle is titled to Kristina and herself. She did verify that Kristina goes to college in Maryland, but she comes home on breaks. The address of Richard and Gina Kelley in Portland, Maine is Kristina’s legal address, and Kristina’s vehicle stays in Maine.

Title 24-A M.R.S.A. § 2914(4) permits an insurer to cancel a policy if an operator residing in the same household has a license suspended or revoked during the policy term. Even though Mrs. Kelley argues that she felt Kristina’s suspension should not affect her policy because Kristina’s vehicle was insured on a separate policy, based on the evidence at the hearing, Kristina is a resident of the household.

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

INDEX OF RECORD:

Exhibit 1 - sworn affidavit
Exhibit 2 - motor vehicle report for Kristina Kelley
Exhibit 3 - proof of mailing
Exhibit 4 - hearing request
Exhibit 5 - copy of notice

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is hereby approved. Hanover Insurance Company is directed to continue coverage until March 21, 2002 at 12:01 a.m. to allow Mr. and Mrs. Kelley 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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