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This proceeding arose upon a request for hearing made by George Netch to contest the pending nonrenewal of automobile insurance coverage provided by State Farm Mutual Automobile Insurance Company. On October 30, 2003, the insurer mailed a notice of nonrenewal effective December 6, 2003 on policy number 22 6647-F06-19C, citing “Driving record of George Netch: 9/6/03 negligent accident; 10/29/02 negligent accident” as the grounds for nonrenewal. . Pursuant to 24-A M.R.S.A. § 2920, the insured's hearing request was timely.

A hearing in this matter was held on December 4, 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 State Farm Mutual Automobile Insurance Company submitted a sworn statement in lieu of appearance. George Netch represented himself at the hearing.

FINDINGS OF FACT

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

1. State Farm has provided automobile insurance for George Netch since December 6, 1989.
2. On 10/29/02, Mr. Netch rear-ended another vehicle.
3. On 9/6/03, Mr. Netch collided with another vehicle while backing out of a parking space.

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.

Nancy Corbett, Underwriting Team Leader for State Farm, stated in her affidavit that $799 was paid under liability and $254 under collision for the 9/6/03 loss. In the 10/29/02 loss, she testified that $1,515 was paid under liability and $2,603 under collision. She submitted documents which establish the date of loss, driver, vehicle, description of loss and the amounts paid.

George Netch testified that he did have two minor fender benders and that he did not know the amounts paid to the other parties.

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 nonrenewal 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 nonrenewal.

The documentation submitted by State Farm shows that $1515 was paid under Coverage B and $2603 under Coverage G for the accident of 10/29/02; and that $799 was paid under B and $254 under G for the accident of 09/06/03. As Coverage G (collision) also includes a $250 deductible, the total amount of damages are $4,368 for the first loss and $1,303 for the second; therefore, State Farm has met the burden of proof in establishing that these accidents meet the requirements in statute for nonrenewal.

INDEX OF RECORD:
Exhibit 1 – Affidavit of Nancy Corbett
Exhibit 2 – Postal Certificate of Mailing
Exhibit 3 – Evidence of 10/29/02 Accident
Exhibit 4 – Evidence of 9/6/03 Accident
Exhibit 5 – Policy Origination Date
Exhibit 6 – Copy of Policy

ORDER AND NOTICE OF APPEAL RIGHTS

The intended termination is hereby approved. State Farm Mutual Auto Insurance Company is directed to continue coverage pursuant to 24-A M.R.S.A. § 2920 until 12:01 a.m. on February 4, 2004, to allow the policyholder 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.

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