Archives: 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008

This proceeding arose upon a request for hearing made by Glenn & Angela Junkins, to contest the pending nonrenewal of automobile insurance coverage provided by Concord General Mutual Insurance Company. On April 15, 2003, the insurer mailed a notice of nonrenewal effective June 15, 2003 on policy number B059300-0, citing “Angela’s losses of 11/15/2001 and 1/12/2002” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Concord General Mutual Insurance Company provided the insured with timely notice and the insured's hearing request was timely.

A hearing in this matter was held on May 13, 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 the proof or evidence given by the insurer to support its reason for policy nonrenewal. Concord General Mutual Insurance Company submitted a sworn statement in lieu of appearing at the hearing. Angela Junkins also submitted a sworn statement in lieu of appearing at the hearing.

FINDINGS OF FACT

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

1. Concord General Mutual Insurance Company has insured Glenn and Angela Junkins’ vehicles since June 1997.
2. The following claims have been submitted: 11/15/01 $5,631.31 paid and 1/12/02 $8,395.46 paid.

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.

Subsection 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 Title 29-A, section 2251, subsection 1.” The referenced amount currently is $1,000.

The statute also provides four exceptions, stating that an occurrence is not considered an accident when:

1. the vehicle was struck from the rear;
2. the vehicle was struck while parked;
3. only the operator of another vehicle involved was convicted of a crime, offense or violation contributing to the accident; or
4. the insured or operator or insurer was reimbursed by or on behalf of a person responsible for the accident, or has a judgment against that person.

Alison S. Jones, Personal Lines Underwriter for Concord, testified in her affidavit that Angela has been involved in two vehicle accidents resulting in either personal injury or property damage in excess of $1,000. Loss records that established the driver, the dates of the accidents, and the vehicle involved in the accident were provided as evidence as well as the amounts of the claims paid by Concord. Although Ms. Jones failed to submit descriptions of the losses, Ms. Junkins stated in her sworn statement that both losses involved deer.

Angela Junkins also stated that she had no control over the animals and felt that these accidents were unavoidable. She also noted that she has not had any other incidents following these losses and her premium payment is current.

The governing statute provides the four exceptions stated above, none of which fit either of Angela Junkins’ losses.

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

INDEX OF RECORD:
Exhibit 1 - Hearing request
Exhibit 2 - Copy of notice & proof of mailing
Exhibit 3 - Affidavit of Alison Jones
Exhibit 4 - Angela Junkins’ sworn statement
Exhibit 5 - Loss records
Exhibit 6 - Copy of policy

ORDER AND NOTICE OF APPEAL RIGHTS

The intended nonrenewal is hereby approved. Concord General Mutual Insurance Company is directed to continue coverage under policy #B059300-0 until June 27, 2003 at 12:01 a.m. to allow Glenn & Angela Junkins time to allow 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.

Return to Cancellation / Nonrenewal Hearing Decisions