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This proceeding arose upon a request for hearing made by Mary Winchester to contest the pending cancellation of automobile and homeowners insurance coverage provided by Concord General Mutual Insurance Company (the Company). On April 11, 2003, the insurer mailed notices of cancellation effective April 28, 2003 on policy numbers B352229-0 and HO03914-5, citing “nonpayment of premium” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. §§ 2914, 2920, 3049 and 3054, the Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on May 27, 2003 with Connie Mayette sitting as designated hearing officer, pursuant to 24-A M.R.S.A. §§ 210, 2920, and 3054. 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 cancellation. Both parties submitted a sworn statement in lieu of appearance at the hearing.

FINDINGS OF FACT

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

1. Concord insures the automobile exposure of Mary and Larry Winchester under policy #B352229-0. The policy renewed effective April 4, 2003. Payment of the renewal premium, or an installment thereof, was due April 4, 2003.
2. Concord also insures a dwelling under policy #HO03914-5. The current policy term is January 4, 2003 to January 4, 2004. An installment was due April 4, 2003.
3. As no payment was received, notices of cancellation were mailed April 11 advising the policies would be cancelled if payment was not received by April 28. No payment was received.
4. The notices were mailed to the address listed on the policies, as evidenced by the postal certificate of mailing.

ANALYSIS AND CONCLUSION OF LAW

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. §§ 2920 and 3054. The 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 Concord General Mutual Insurance Company has established adequate grounds for policy cancellation.

Title 24-A M.R.S.A. §§ 2914 and 3049 permit cancellation for nonpayment of premium. These sections state that a notice of cancellation is not effective unless deemed received by the named insured after the premium due date.

Carla Aversa, Customer Service Manager for Concord, stated in her affidavit that payment was not received from the insured by April 28th, therefore the policies cancelled for nonpayment. The notices of cancellation themselves, provided by the policyholder, establish that the premium was originally due on April 4. The evidence on the record shows the notice was mailed April 11, and therefore was deemed by 24-A M.R.S.A. §§ 2915 and 3050 to have been received April 16, which provides sufficient notice for statutory requirements.

Ms. Winchester did not dispute the nonpayment of the premium, but she testified that she did not receive sufficient notice of the cancellation as she is only able to get to her post office box on Saturdays and Mondays due to her current living arrangements and work hours. She stated that she and her ex-husband are divorced1, and that they are deemed by the divorce decree to be jointly responsible for the insurance; her portion is 36% while his is 64%. She stated that Concord and the agent have refused to make a policy change to accommodate this arrangement by arranging for separate payments for their respective portions.

While the Bureau sympathizes with this difficult situation, the policy contract requires payments to be made by the policyholders when due, or the policy will be cancelled. The company has met the requirements in statute and in the contract by billing the named insureds and notifying them of the pending cancellation in accordance with statutory procedure.

INDEX OF RECORD:
Exhibit 1 - Affidavit of Carla Aversa
Exhibit 2 - Auto Cancellation Notice
Exhibit 3 - Auto Policy
Exhibit 4 - Homeowners Cancellation Notice
Exhibit 5 - Homeowners Policy
Exhibit 6 - Postal Certificate of Mailing
Exhibit 7 - Affidavit of Mary Winchester

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is hereby approved. Concord General Mutual Insurance Company is directed to continue coverage under these policies until 12:01 a.m. on July 12, 2003, to allow the policyholders 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.

1 Ms. Winchester stated they were divorced 07/08/03, but continually referenced the divorce as past tense, rather than in process. It appears the date given in her affidavit was incorrect.

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