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This proceeding arose upon a request for hearing made by Denise and Daniel Lambert to contest the pending nonrenewal of automobile insurance coverage provided by Patriot Mutual Insurance Company. On December 13, 2002, the insurer mailed a notice of nonrenewal effective January 19, 2003 on policy number EPME3072509-14, citing “due to Matthew H. Lambert’s driving record of 2/1/02 and 2/25/02 speeding convictions, 2/1/02 seat belt violation, with suspensions on 2/21/02, 3/6/02, 3/15/02 and 3/30/02. Currently under suspension” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Patriot 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 February 5, 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 nonrenewal. Patriot Mutual Insurance Company submitted a sworn statement in lieu of appearing at the hearing. Denise Lambert represented herself at the hearing.

FINDINGS OF FACT

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

1. Patriot Mutual Insurance Company (or its predecessor, Acadia Insurance Company) has insured the Lamberts’ vehicles for approximately 5 years with the most recent policy term of January 19, 2002 to January 19, 2003.
2. The motor vehicle report for the Lambert’s son, Matthew Lambert, reflects speeding convictions on 2/1/02 and 2/25/02 with a seat belt violation on 2/1/02, and suspensions on 2/21/02, 3/6/02, 3/15/02 and 3/30/02.

Analysis and Conclusion of Law

Title 24-A M.R.S.A. § 2916-A permits nonrenwal based upon a reason for which the policy could have been cancelled. 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.”

Kimberly Rabesa, Personal Lines Manager for Patriot Mutual Insurance Company, testified in her affidavit that due to Matthew H. Lambert’s driving record, the company is nonrenewing the automobile policy # EAPME3072509-14. Her sworn testimony stated: “Under title 24-A M.R.S.A. § 2916-A Grounds for Non-Renewal-1.E states- if an insured is operating a motor vehicle insured under the policy without a valid license or registration in effect, except when the person convicted had possessed a valid license or registration which had expired and was subsequently renewed, or during a period of revocation or suspension thereof or in violation of the limitations set forth on the operator’s license.”

Denise Lambert testified that Matthew is still in high school and resides in the household. She objects to her nonrenewal based on her son’s driving record while she and her husband both have good driving records. She attempted to have Matthew excluded from the policy but Patriot Mutual Insurance Company would not exclude him as he is residing in the household. She had conducted research regarding exclusions and argued that if he has had three violations in one year, the company should offer to exclude him from their policy.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. §§ 210 and 2920. Patriot 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 Patriot Mutual Insurance Company has established adequate grounds for policy nonrenewal.

Title 24-A M.R.S.A. § 2916-B states that an insurer may agree to exclude an operator whose license suspension provides statutory grounds for cancellation or nonrenewal. However, the insurer is not required to do so.

The insurer erroneously referred to 24-A M.R.S.A. § 2916-A(1)(E) in its statement for the hearing. The evidence on the record demonstrates that suspensions meeting the requirements of 24-A M.R.S.A. § 2914(4) have occurred. There is at least one suspension which is not subject to the exemptions referenced under 29-A § 2914 which provides grounds for cancellation, and therefore nonrenewal as well. The reason given on the notice of nonrenewal specifically referenced the suspensions.

INDEX OF RECORD:
Exhibit 1 - Hearing request
Exhibit 2 - Copy of notice and proof of mailing
Exhibit 3 - Sworn affidavit of Kimberly Rabesa
Exhibit 4 - Motor Vehicle Record of Matthew Lambert
Exhibit 5 - Copy of policy

ORDER AND NOTICE OF APPEAL RIGHTS

The intended nonrenewal is hereby approved. Patriot Mutual Insurance Company is directed to continue coverage under policy # EPME3072509-14 until June 11, 2003 at 12:01 a.m. to allow Denise and Daniel Lambert 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 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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