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

This proceeding arose upon a request for hearing made by Janet & Wainel Thibodeau to contest the pending cancellation of automobile insurance coverage provided by State Farm Mutual Automobile Insurance Company. On October 7, 2003, the insurer mailed a notice of cancellation effective November 5, 2003 on policy numbers 2096-E19-19D & 6 6441-F25-19D & 6 6441-F25-19D, citing as the grounds for cancellation; ,“driving record of Trevor–Jack Thibodeau: 05/19/03 open license suspension – suspension to 6/18/03 – suspension for conviction 01/03/03”. Pursuant to 24-A M.R.S.A. § 2920, the insured's hearing request was timely.

A hearing in this matter was held on November 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 State Farm Mutual Automobile Insurance Company submitted a sworn statement in lieu of appearing at the hearing. Janet & Wainel Thibodeau represented themselves at the hearing.

FINDINGS OF FACT

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

1. State Farm Mutual Automobile Insurance Company insures three vehicles under separate policies for the policyholders.
2. Policy # 2096 E19-19D has a term of 5/19/03 – 11/19/03
   Policy # 6 6441–F25-19D has a term of 6/25/03 -12/25/03
   Policy # 27 9410-B08-19E has a term of 8/8/03 – 2/8/04
3. The motor vehicle report for Trevor Thibodeau reflects a conviction on January 3, 2003 for passing a stopped school bus with a suspension date of 5/19/2003 to 6/18/03.
4. Trevor Thibodeau is the son of Janet and Wainel and is a listed and rated driver who lives in their household and operates their vehicles.

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.”

Nancy Corbett, Underwriting Team Leader for State Farm Insurance Companies testified in her affidavit that Trevor Thibodeau has a license suspension permitting them to cancel the policy. She stated that the 5/19/03 license suspension was effective during the 180 days prior to the current renewal policy term for each policy and meets the requirements of Maine law.

Janet Thibodeau testified that Trevor had received a letter from the Secretary of State’s office. That letter informed Trevor that action would not be taken as a result of an earlier suspension dated 9/8/2002. According to the motor vehicle record, that suspension was a provisional one which does not give grounds for nonrenewal or cancellation. However, the suspension for the conviction of 1/3/2003 for passing a stopped school bus is not shown as a provisional suspension. As it does not fall under the exceptions of 29-A M.R.S.A. § 2471 or 2472, or 28-A M.R.S.A. § 2052, this suspension provides grounds for cancellation of these policies.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. State Farm Mutual Automobile Insurance Company 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 State Farm Mutual Automobile Insurance Company has established adequate grounds for policy cancellation.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended termination is hereby approved. State Farm Mutual Automobile Insurance Company is directed to continue coverage until 12:01 a.m. on February 4, 2004 to allow Mr. and Mrs. Thibodeau the opportunity to obtain other coverage.

This Decision and Order is a final agency action within the meaning of the Maine Administative 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