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This proceeding arose upon a request for hearing made by Christopher & Lisa Johnson (hereinafter the “Insured”) to contest the pending cancellation of automobile insurance coverage provided by MMG Insurance Company (hereinafter the “Company”). On December 9, 2003, the Company mailed a notice of cancellation effective January 5, 2004, on policy number AC10911542, citing as the grounds for cancellation “the named insured under the policy has a drivers license suspension during the policy term (Christopher Johnson, DOB 6-5-1971: OUI, suspension 11-14-2003).” Pursuant to 24-A M.R.S.A. § 2920, the Insured's hearing request was timely.

A hearing in this matter was held pursuant to 24-A M.R.S.A. 2920 on January 28, 2004, with Mary Ellen Albert sitting as designated hearing officer. See 24-A M.R.S.A. § 210. The purpose of the hearing was limited to establishing the existence of the proof or evidence given by the Company to support its reason for policy cancellation. Jim Stout, Marketing Representative, represented the Company at the hearing. The Insured neither appeared nor submitted a sworn statement.

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

1. The Company provides vehicle coverage for the Insured with the policy term of June 18, 2003, to June 18, 2004.
2. Christopher Johnson’s driver’s license was suspended on November 14, 2003, due to the operation of a motor vehicle with a blood alcohol level of .08 or more.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. § 2914 permits cancellation if the “named insured or any operator who either resides in the same household or customarily operates and 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.”

Mr. Stout testified that Mr. Johnson’s driver’s license was suspended during the policy term. He submitted motor vehicle reports dated January 6, 2004, and January 12, 2004, that both show the suspension with the effective date of November 14, 2003. The reports indicate that Mr. Johnson’s license was suspended due to the operation of a motor vehicle with a blood-alcohol level of .08 or more.

The Superintendent of Insurance has jurisdiction over this matter pursuant to 24-A M.R.S.A. § 2920. The Company bears the burden of proof for establishing that the statutory grounds for policy cancellation exist. The Company provided a copy of Mr. Johnson’s motor vehicle record which reflects a license suspension that occurred during the current policy term. As the suspension does not fall under the exceptions of 29-A M.R.S.A. § 2471 or § 2472, or 28-A M.R.S.A. § 2052, it provides grounds for cancellation of the policy at issue. Further, the Insured failed to appear or provide a sworn statement. Therefore, there is no evidence in the record to contradict the validity of the motor vehicle reports presented. Based on the evidence presented at the hearing, the Superintendent hereby concludes that MMG Insurance Company has established adequate grounds for policy cancellation.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is hereby approved. MMG Insurance Company is directed to continue policy # AC10911542 until May 11, 2004 at 12:01 a.m. to allow the policyholders 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 April 26, 2004                                                   Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    By Mary Ellen Albert
                                                                                    Designated Hearing Officer

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