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

Findings and Decision

This proceeding arose upon a request for hearing made by Rebecca Pullen to contest the pending cancellation of automobile insurance coverage provided by Farmers Insurance Exchange. On July 8, 2003, the insurer mailed a notice of cancellation effective August 12, 2003 on policy numbers 162080539 and 162090540, citing as the grounds for cancellation: “your policy is being cancelled as an operator in the household, Luke Boulange, has a current suspended license. Luke Boulange also has the following on his motor vehicle record: 01/02/01 speeding 59 mph in a 35 mph zone, 11/4/01 suspension due to blood alcohol content .00 plus suspension to 11/4/02”. Pursuant to 24-A M.R.S.A. §§ 2915 and 2920, Farmers provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on August 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 the proof or evidence given by the insurer to support its reason for policy cancellation. Staff representing Farmers Insurance Exchange submitted a sworn statement in lieu of attending the hearing. Rebecca Pullen also submitted a sworn statement in lieu of attending.

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

1. Farmers Insurance Exchange insures Rebecca Pullen’s vehicles with the current policy term of April 23, 2003 to October 23, 2003.
2. Luke Boulange’s motor vehicle report shows a speeding citation received on January 2, 2001 and suspension on November 4, 2001 for the violation of Blood Alcohol content .00 Plus.
3. A Hawaii Indentification Certificate shows Luke Boulange’s address as 135 S. Wakea Avenue, #203, Kahului, Maui, HI 97632.

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.”

Ken Bray, Executive Director for Farmers Insurance Exchange testified in his sworn affidavit that the cancellation was based on the motor vehicle report for Luke Boulange. Mr. Bray did submit driver exclusion forms with his statement and stated that the company would agree to reinstate if Ms. Pullen would sign the exclusion forms. The forms should have been sent directly to their insured.

Ms. Pullen stated in her sworn statement that Luke Boulange has not lived in her household since April of 2002. He resides in the state of Hawaii and she submitted a Hawaii Identification Certificate showing his photo along with his address of Kahului, Maui, HI 96732. She also submitted a cellular telephone bill showing he is receiving calls on a regular basis at this Hawaii address.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. Farmers Insurance Exchange 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 Farmers Insurance Exchange has not met the burden of proof.

Luke Boulange does not reside at Ms. Pullen’s residence. Further, even if he did, the suspension did not provide grounds for cancellation pursuant to the cancellation control act. The suspension did not occur during the policy term or 180 days immediately preceding the renewal’s effective date.

INDEX OF RECORD:
Exhibit 1 - request for the hearing & proof of mailing
Exhibit 2 - insured’s sworn statement
Exhibit 3 - company sworn statement
Exhibit 4 - motor vehicle record of Luke Boulange
Exhibit 5 - copy of policy
Exhibit 6 - Hawaii ID for Luke Boulange
Exhibit 7 - Cellular phone bill for Luke Boulange

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is hereby not approved. Farmers Insurance Exchange is directed to continue coverage under policy # 162080539 and 162080540 for the remainder of the policy term.

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