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In RE:

This proceeding arose upon a request for hearing made by Bonita Lagasse to contest the pending nonrenewal of automobile insurance coverage provided by Peerless Insurance Company. On July 1, 2003, the insurer mailed a notice of nonrenewal effective August 30, 2003 on policy number PLPM209560, citing “Bonita’s accidents of 3/20/02 and 7/24/02” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. §§ 2917 and 2920, Peerless 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 20, 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. Staff representing Peerless Insurance Company appeared at the hearing. Bonita Lagasse and David Dyer represented themselves at the hearing.

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

1. Peerless Insurance Company has provided auto insurance for Bonita Lagasse-Dyer and David Dyer since at least 8/30/01.
2. On 3/20/02, Bonita struck a chunk of ice in the road while following a plow vehicle. Peerless paid $482.25 in collision damages after application of the $250 deductible, and also paid $323.33 rental reimbursement.
3. On 7/24/02, Bonita backed into another vehicle in a parking lot. Peerless paid $1,481.33 in property damage liability.

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." 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.

Sharon Roberts, Senior Personal Lines Underwriter for Peerless, testified that Bonita Lagasse has been involved in two accidents each exceeding $1,000 in damages in the three-year period preceding the anniversary date of the policy. She submitted loss documents establishing the dates of loss, vehicle and driver involved, and amounts paid.

Bonita Lagasse-Dyer testified that the 3/20/02 loss occurred on the turnpike during a storm, when she was slowly following a state plow truck. She was unable to avoid a chunk of ice that fell off the plow truck into the roadway. David Dyer testified that the accident was not her responsibility, as there was no opportunity for her to go in any other direction. He argued that it occurred as a result of inclement weather and was caused by the state vehicle.

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

Although the insured argued that the 3/20/02 accident should not count as it was not her fault, the circumstances of the accident do not meet any of the four exceptions provided in the Automobile Cancellation Control Act. However, the amount of the loss fails to meet the threshold established in the law. The threshold is personal injury or property damage in excess of $1,000. The property damage, before application of the collision deductible, was $732.25. Rental reimbursement expense is neither personal injury nor property damage, and therefore does not factor into the threshold requirement for nonrenewal.

INDEX OF RECORD:
Exhibit 1 - Copy of Policy
Exhibit 2 - Postal Certificate of Mailing
Exhibit 3 - Copies of 24-A M.R.S.A. § 2916-A and 29-A M.R.S.A. § 2251
Exhibit 4 - 3/20/02 Loss Documents
Exhibit 5 - 7/24/02 Loss Documents

ORDER AND NOTICE OF APPEAL RIGHTS
The intended nonrenewal is not approved. Peerless Insurance Company is directed to renew policy # PLPM209560 on the same terms as the expiring 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 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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