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This proceeding arose upon a request for hearing made by Lynn Costello to contest the pending nonrenewal of automobile insurance coverage provided by Travelers Indemnity Co. of America. On May 23, 2003, the insurer mailed a notice of nonrenewal effective June 30, 2003 on policy number 943047719 101 1, citing “failure to provide the following information necessary for the acceptance or proper rating of your policy: failure to respond to a letter for Justin Costello’s drivers license number” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Travelers Indemnity Co. of America provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on June 24, 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. Staff representing Travelers Indemnity Company of America submitted a sworn statement in lieu of appearing at the hearing. Lynn Costello 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. Travelers Indemnity Company of America has insured Ms. Costello’s vehicle for approximately three years with a current policy term of 6/30/02 to 6/30/03. The company ordered a motor vehicle report for the insured’s son, Justin once they received the driver’s license number from Lynn Costello.
2. The motor vehicle report for Justin E. Costello shows that he had a suspended driver’s license due to illegal transportation of liquor.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. § 2916-A permits nonrenewal for specified convictions or accidents, or if based upon a reason for which the policy could be cancelled. 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 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.”

The references to 29-A M.R.S.A. §§ 2471 and 2472 concern the suspension of provisional licenses. The exception for 28-A M.R.S.A. § 2052 concerns illegal transportation of liquor by minors.

Jean Williams, Technical Specialist for Travelers states in her sworn affidavit that Lynn Costello’s automobile policy was nonrenewed effective June 30, 2003 as the company had not received the license information requested for her son, Justin. In the affidavit, Ms. Williams states in the very next sentence that the insured did provide the information and the company ran the motor vehicle report that shows Justin has a suspended driver’s license due to illegal transportation of liquor.

Lynn Costello states in her sworn statement that the requested information was provided to the company in April, 2003.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. Travelers Indemnity Company of America 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 Travelers has not established adequate grounds for policy nonrenewal.

24-A M.R.S.A. § 2917 states that ‘the reason or reasons for the intended nonrenewal action shall accompany the notice of intent not to renew and the reason or reasons shall be explicit”.

The reason for nonrenewal on the notice cites “failure to provide the following information necessary for the acceptance or proper rating of your policy: failure to respond to a letter for Justin Costello’s driver’s license number.”

This reason does not fall under any of the permitted grounds for nonrenewal in the Maine Automobile Cancellation Control Act. Further, the insurer’s own statement acknowledged that it did receive the requested information. The insurer asserted then that the nonrenewal was based upon Justin Costello’s license suspension. As Justin Costello’s license suspension was not listed as a reason, it will not be considered. It is noted, however, that as the suspension was pursuant to 28-A M.R.S.A. § 2052, it would not have provided grounds for nonrenewal even if it had been listed as the reason the nonrenewal notice.

INDEX OF RECORD:
Exhibit 1 - Request for hearing
Exhibit 2 - Copy of notice & proof of mailing
Exhibit 3 - motor vehicle report for Justin Costello
Exhibit 4 - sworn affidavit of Jean Williams
Exhibit 5 - sworn statement of Lynn Costello
Exhibit 6 - copy of policy

ORDER AND NOTICE OF APPEAL RIGHTS

The intended nonrenewal is not approved. Travelers Indemnity Company of America is directed to renew policy # 943047719 101 1 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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