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On December 13, 2002, the Bureau of Insurance received a hearing request from Armand & Janet Roy. On November 18, 2002, State Farm Fire & Casualty Insurance Company mailed a notice of nonrenewal effective December 26, 2002 on policy number T00 8509-F26-19E. The notice stated "driving record of Armand W. Roy 3/2/02 negligent accident and 8/28/00 negligent accident" as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, State Farm Fire & Casualty Insurance Company provided the insured with proper notice and the insured's hearing request was timely. The Bureau scheduled a hearing and sent notice to the parties on December 16, 2002.

The hearing was held as scheduled on January 8, 2003 with Mary Ellen Albert sitting as designated hearing officer pursuant to 24-A M.R.S.A. § 2920. The purpose of the hearing was limited to establishing the existence of proof or evidence given by the insurer to support their reason for policy nonrenewal. The burden of proof lay with the insurer. State Farm Fire & Casualty Insurance Company submitted a sworn statement in lieu of appearing. Mr. Roy represented himself at the hearing.

Findings of Fact

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

1. State Farm Fire and Casualty Company has insured Mr. Roy's automobiles for several years. The current policy term is December 26, 2001 to December 26, 2002.
2. The insurer has paid for the following accidents involving Armand Roy as the driver:

   8/28/00 Other party made left hand turn in front of insured at red light and their vehicles collided. Company paid $5000 bodily injury and $7900 property damage.

   3/2/02 Brakes failed and insured vehicle rear ended other vehicle. Company paid $2276 property damage.

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. Section 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 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.

Dione Ramsdill, Underwriting Supervisor for State Farm testified in her affidavit that Armand Roy had two accidents exceeding the $1000 threshold while operating a vehicle insured under the policy within the proscribed time frame. Loss records were submitted to demonstrate the specifics of those losses.

Armand Roy testified that the operator of the other vehicle involved in the 8/28/00 accident never slowed down and he felt she was negligent. Mr. Roy also testified that when he rear ended a truck on 3/2/02, his brakes were faulty and he had them fixed right away. He felt that faulty brakes should not be considered a negligent act on his part.

The governing statute provides the four exceptions stated above. Based on all of the evidence at the hearing however, none of which appear to apply to either of the two described losses. One of the exceptions relates to vehicles that are struck from the rear, but Mr. Roy struck a vehicle from the rear; his own vehicle was not struck in such a fashion.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. State Farm Fire & Casualty 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 State Farm Fire & Casualty Insurance Company has established adequate grounds for policy nonrenewal.

INDEX OF RECORD:
Exhibit 1 - Copy of Notice & Postal Proof of mailing
Exhibit 2 - Copy of Policy
Exhibit 3 - 8/28/00 Loss Documents
Exhibit 4 - 3/2/02 Loss Documents
Exhibit 5 - Armand Roy's motor vehicle report

Order and Notice of Appeal Rights

The intended nonrenewal is hereby approved. State Farm Fire & Casualty Insurance Company is directed to continue coverage under policy #T00 8509-F26-19E until February 15, 2003 at 12:01 a.m. to allow Mr. Roy 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.

Per order of the Superintendent, the effective date of this order is January 30, 2003.

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