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This proceeding arose upon a request for hearing made by Hugh McHatten of Castle Hill, ME, to contest the pending cancellation of Farmowners insurance coverage provided by CountryWay Insurance Company. On August 21, 2003, the insurer mailed a notice of cancellation effective September 4, 2003 on policy number FO 738021, citing “ineligible due to increase in exposure - extensive fire damage to dwelling is not being repaired - increasing both property and liability hazards” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 3007, CountryWay Insurance Company provided the insured with proper notice and the insured's hearing request was timely.

A hearing in this matter was held on September 16, 2003 with Connie Mayette sitting as designated hearing officer pursuant to 24-A M.R.S.A. § 3007. Based on the information provided by the insurer on November 3, the insurer had withdrawn and voided the cancellation notice after the hearing. The insurer superceded the cancellation action by issuing a notice of nonrenewal on September 22, to take effect November 2, 2003.

The nonrenewal notice erroneously indicated that the policyholder had the right to a hearing on the nonrenewal action if requested within 30 days of receipt of the notice. 24-A M.R.S.A. § 3007 does not provide the right to a hearing for a nonrenewal action. The original petition is hereby dismissed as moot, and our file is closed without further action. As the insurer failed to notify the Bureau of this action in a timely fashion so that our earlier coverage order could be amended, however, CountryWay Insurance Company is hereby directed to continue coverage until 12:01 a.m. on November 19, 2003.

This Decision and Order is final agency action within the meaning of the Maine Administrative Procedures Act. It can be appealed 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 this action 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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