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This proceeding arose upon a request for hearing made by Donald Hamlin to contest the pending cancellation of automobile insurance coverage provided by North East Insurance Company. On December 9, 2003, the insurer mailed a notice of cancellation effective December 29, 2003 on policy number 02180078431, citing “nonpayment of premium” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 2920, the insured's hearing request was timely.

A hearing in this matter was held on January 15, 2004 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 North East Insurance Company appeared at the hearing. Donald Hamlin represented himself at the hearing.

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

1. North East Insurance Company has provided automobile coverage for Donald Hamlin since October 2002.
2. A bill was mailed for $71.75 with a due date of 11/18/03. Mr. Hamlin paid $54.75 on 11/17/03.
3. A bill was issued 11/22/03 with a due date of 12/8/03. When nothing was received, a cancellation notice was issued on 12/09/03 to take effect on 12/29/03 for non payment of premium. To reinstate this policy, $261 was due before 12/29/03.
4. Mr. Hamlin stated he attempted to pay on 12/26/03 but the agency was closed.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. § 2914(1) permits an insurer to cancel a policy for nonpayment of premium, which is defined as “failure of the named insured to discharge when due any of his obligations in connection with the payment of premium on the policy, or any installment of a premium….” 24-2912(3).

Ethyl Potvin, Personal Lines Manager, and Cindy Russo of the billing department represented North East Insurance Company. Ms. Potvin testified that an unlisted driver had been involved in an accident while operating a vehicle titled to Mr. Hamlin. As result of that accident, Joseph Blais was added to Mr. Hamlin’s policy. The company had requested proof of insurance in force for Mr. Blais at the time the accident occurred, but none was provided. The loss occurred on November 1, 2003 and Mr. Blais obtained coverage of his own on the vehicle after that date.

Mr. Hamlin argued that he did not owe the premium. He testified he went into the agency the day after Christmas with his payment but the agency was closed. He testified he went in again the following Monday and the agent called the company. The company refused to reinstate as the policy had cancelled at 12:01 a.m. that day. Mr. Hamlin argues that he should never have been billed for the second vehicle or for Mr. Blais being added to his policy. Mr. Hamlin also testified that he has sold the vehicle to Joseph Blais and Mr. Blais has his own insurance policy on it.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A.
§ 2920. North East Insurance Company bears the burden of proof for establishing that the statutory grounds for policy termination exist. Based on the evidence presented at the hearing, the Superintendent hereby concludes that North East Insurance Company has established adequate grounds for policy termination. The company has demonstrated there was an exposure that they were entitled to charge for. As no payment was made before the notice’s deadline of December 29, the cancellation for nonpayment is permissible under Maine law.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended nonrenewal is hereby approved. North East Insurance Company is directed to continue coverage until 12:01 a.m. on March 25, 2004 to allow Mr. Hamlin 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.

Dated March 9, 2004                                                   Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    By Mary Ellen Albert
                                                                                    Designated Hearing Officer

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