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This proceeding arose upon a request for hearing made by Kenneth & Theresa Ward to contest the pending cancellation of automobile insurance coverage provided by GEICO Casualty Company. On December 2, 2002, the insurer mailed a notice of cancellation effective January 1, 2003 on policy number NB02450, citing the driving record of Theresa Ward, specificially the open license suspensions(s) 11/29/02 Administrative Action - Oper with Bac .08 or more and 11/25/02 Adminstrative Action - Oper with Bac .08 or more, as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2915 and 2920, GEICO Casualty Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on January 21, 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. GEICO Casualty Company submitted a sworn statement in lieu of appearing at the hearing. Kenneth & Theresa Ward neither submitted a sworn statement nor appeared at the hearing.

FINDINGS OF FACT

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

1. Theresa Ward’s motor vehicle report reflects suspensions of 11/25/02 and 11/29/02.
2. The Ward’s policy with GEICO Casualty Company is effective 9/17/02 to 3/17/03.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. § 2914(4) includes as the grounds for cancellation: “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….during the policy term or, if the policy is a renewal, during its term or the 180 days immediately preceding its effective date.”

Robin Lubow, Senior/Trial Preparation Underwriter at GEICO Casualty company, testified that Theresa Ward has open license suspensions dated 11/25/02 and 11/29/02, and submitted a copy of the motor vehicle record as evidence.

In his hearing request, Kenneth Ward indicated that there was a pending hearing regarding the alleged OUI charges, and that there had been no conviction to date. The cancellation action taken by the company, however is for the suspension itself. The insured presented no evidence contradicting the fact that Theresa Ward’s motor vehicle record disclosed license suspensions during the relevant period.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. GEICO Casualty Company bears the burden of proof for establishing that the statutory grounds for policy cancellation exist. GEICO provided a copy of Ms. Ward’s motor vehicle report which reflects license suspension that occurred during the current policy term. Based on the evidence presented at the hearing, the Superintendent hereby concludes that GEICO Casualty Company has established adequate grounds for policy cancellation.

The action taken by the company is based upon the license suspensions which occurred during the current policy term. As Theresa Ward is a named insured, GEICO has met its burden of proof.

INDEX OF RECORD:
Exhibit 1 - copy of notice
Exhibit 2 - motor vehicle record for Theresa Ward
Exhibit 3 - affidavit of Robin Lubow
Exhibit 4 - copy of policy
Exhibit 5 - hearing request

Order and Notice of Appeal Rights

The intended cancellation is hereby approved. GEICO Casualty Company is hereby directed to continue policy number NB02450 until March 28, 2003 at 12:01 a.m. to allow Kenneth & Theresa Ward time to obtain replacement 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 Title 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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