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

In RE:

This proceeding arose upon a request for hearing made by Ann Austin to contest the pending nonrenewal of automobile insurance coverage provided by Concord General Mutual Insurance Company. On June 12, 2003, the insurer mailed a notice of nonrenewal effective August 20, 2003 on policy number B 525003, citing “Ann losses of 10/19/02 and 5/20/03” 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 proper notice and the insured's hearing request was timely.

A hearing in this matter was held on August 13, 2003 with Connie Mayette 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. 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 General Mutual Insurance Company has insured the Austins’ automobiles since August 1991.
2. Ann Austin has had the following accidents:
   10/19/02 Went off road onto soft shoulder and sideswiped either a tree or a telephone pole. Concord paid $6,582.56 under collision coverage.
   5/20/03 Collided with other vehicle at intersection with a yield sign. Concord paid $707.49 under collision and $6,919.96 property damage to the other vehicle.

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. Section 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." That amount currently is $1000.

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

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

Alison Jones, Personal Lines Underwriter for Concord, stated in her affidavit that Ann Austin has been involved in two vehicle accidents each resulting in property damage in excess of $1,000. She submitted copies of the loss notices giving descriptions of the losses and claim summaries indicating the amount of payment.

Ann Austin stated in her affidavit that the accident in May 2003 was not her fault, as the other driver made an improper turn “as documented by the Maine State Police Report.” She did not submit a copy of that report. There was no indication that the other operator was convicted of a violation contributing to the accident, and none of the other exceptions provided in statute apply.

It is noted that the policy contract allows the insurer to settle or defend, as it considers appropriate, any claim or suit asking for damages for which the insured is legally responsible. Based on the information available to them at the time of the claim, Concord chose to pay the damages incurred by the other driver.

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 General Mutual Insurance Company has established adequate grounds for policy nonrenewal. During the experience period provided by statute, Ann Austin was individually involved in two motor vehicle accidents, each exceeding $1,000. Therefore, the grounds required for nonrenewal based upon accidents have been met.

INDEX OF RECORD:
Exhibit 1 - Affidavit of Alison Jones
Exhibit 2 - Loss Notice & Summary 5/20/03
Exhibit 3 - Loss Notice & Summary 10/19/02
Exhibit 4 - Affidavit of Ann Austin

ORDER AND NOTICE OF APPEAL RIGHTS
The intended termination is hereby approved. Concord General Mutual Insurance Company is directed to continue coverage until September 2, 2003 at 12:01 a.m. to allow the policyholders an opportunity 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.

Return to Cancellation / Nonrenewal Hearing Decisions