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This proceeding arose upon a request for hearing made by Jeanette Babine to contest the pending cancellation of automobile insurance coverage provided by Hartford Accident & Indemnity Company. On February 12, 2003, the insurer mailed a notice of cancellation effective March 10, 2003 on policy number 48PH 375187, citing "Mark Dunlop's September 13, 2002 license suspension which was reinstated November 13, 2002, per motor vehicle report" as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2915 and 2920, Hartford Accident & Indemnity Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on March 12, 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 Hartford Accident & Indemnity Company submitted a sworn statement in lieu of appearing at the hearing. Jeanette Babine represented herself at the hearing.

FINDINGS OF FACT

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

1. Hartford Accident & Indemnity Company insures Jeanette Babine's vehicles on a current policy that renewed November 12, 2002.
2. The motor vehicle record for Mark Dunlop shows a suspension on September 13, 2002 for operating after suspension.
3. The motor vehicle report submitted shows Mark Dunlop's address in a different town from where the insured resides.

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."

Karen Astiasaran of Consumer Affairs for the Hartford Companies testified in her affidavit that on June 15, 2001, Mark Dunlop was driving an insured vehicle, listed under policy number 48PH 375186 when it was involved in an accident. She further states that Mark Dunlop is the insured's son and that he appears to be a customary operator of the insured vehicles. Ms. Astiasaran further testified that the cancellation was based on Mark Dunlop's June 2, 2002 license suspension. That information was obtained from Mark Dunlop's motor vehicle report. She stated that this cancellation complies with 24-A M.R.S.A. section 2914(4), which permits an insurer to cancel a policy of automobile insurance if a named insured or other operator 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."

Jeanette Babine testified that on the day of the accident, she was out of town on business and Mark, who was age 25 at the time, was at her house during her absence. Mark's younger brother was injured in a sports related incident at school. When the school called the home, Mark was the person who received the call. Being the only person there at the time of the emergency, Mark took the first vehicle for which he could locate keys. Ms. Babine also stated that she believed Mark did not realize his license was under suspension at that time. Ms. Babine testified that Mark has not lived with her since he was 15, and she provided a copy of his driver's license and insurance cards showing his address in another town. She also provided his prior insurance policy that insured only his license and his later policy with Progressive Insurance Company.

Both policies also list his address in a different town. Ms. Babine maintains Mark is not residing with her nor is he a frequent or customary operator of her vehicles. She testified that she has no control over his driving violations at his age but does not allow him to operate her vehicles. The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. Hartford Accident & Indemnity 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 Hartford Accident & Indemnity Company has not met the burden of proof. Although the insurer established that Mark Dunlop's driver's license was suspended during the 180 days immediately preceding this renewal, there was no evidence that he resides in the insured's household or customarily operates an automobile insured under the policy. The evidence presented by Ms. Babine indicates that Mark Dunlop resides in another town and is not a customary operator of her vehicles.

INDEX OF RECORD:

Exhibit 1 - request for hearing
Exhibit 2 - copy of notice & proof of mailing
Exhibit 3 - sworn affidavit of Karen Astiasaran
Exhibit 4 - copy of Mark Dunlop's license
Exhibit 5 - copies of prior policies
Exhibit 6 - Mark Dunlop's motor vehicle report

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is not approved. Hartford Accident & Indemnity Company is directed to continue coverage under policy #48PH 375187 on the same terms as the existing policy.

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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