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This proceeding arose upon a request for hearing made by Jared & Beth Anne Damon (hereinafter the “Insureds”) to contest the pending cancellation of automobile insurance coverage provided by MMG Insurance Company (hereinafter the “Company.”) On January 20, 2004, the Company mailed a notice of cancellation effective February 16, 2004, on policy number AC10843586, citing the 03/15/03 license suspension of Jonathan Damon as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 2920, the Insureds’ hearing request was timely.

A hearing in this matter was held pursuant to 24-A M.R.S.A. § 2920 on February 17, 2004, with Connie Mayette 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. Staff representing the Company participated by telephone. The Insureds represented themselves at the hearing and did not object to the Company’s participation by telephone.

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

1. The current policy provided by the Company covers two vehicles and three drivers. The policy term, which is a renewal of a prior policy, is May 1, 2003 to May 1, 2004.
2. Jonathan Damon is listed as a driver on the policy. His motor vehicle record reflects a suspension effective 03/15/2003 for violation of probation status imposed at hearing.

ANALYSIS AND CONCLUSION OF LAW

Title 24-A M.R.S.A. § 2916-A24-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."

Jim Stout, Marketing Representative for the Company, testified that the subject policy was renewed on May 1, 2003, and that a listed driver, Jonathan Damon, had a license suspension on March 15, 2003. He submitted a motor vehicle record reflecting the suspension for “violation of probation status imposed at hearing.” He also submitted a copy of the declarations page of the policy, showing Jonathan as an operator under the policy. He stated that the evidence shows the suspension permits cancellation of the policy.

Jared Damon testified that he does not dispute the accuracy of the motor vehicle record presented; however, he stated that he hoped his more than 10 years with the Company would outweigh a few mistakes made by a new driver. He stated that his son Jonathan was originally charged with excessive noise and excessive acceleration, but that he was not convicted. He stated Jonathan was given a second chance and probation, but that he incurred a speeding charge during the probation which resulted in the license suspension.

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. Based on the evidence presented at the hearing, the Superintendent hereby concludes that the Company has established adequate grounds for policy cancellation.

The governing statute permits cancellation of a policy if a driver’s license is suspended. However, there are three types of suspensions that do not provide grounds for cancellation: (1) a first or second suspension under 29-A M.R.S.A. § 2471(2) (adult provisional license), (2) a first or second suspension under 29-A M.R.S.A. § 2472(2) (juvenile provisional license), and (3) a suspension under 28-A M.R.S.A. § 2052 (illegal transportation of liquor by a minor). Jonathan’s license suspension of March 15, 2003, was for violating the terms of his probation. Accordingly, that suspension does not fit any of the exceptions provided in 24-A M.R.S.A. § 2914(4). Therefore, the cancellation meets the requirements of the Automobile Cancellation Control Act.

INDEX OF RECORD:
Exhibit 1 – Postal certificate of mailing
Exhibit 2 – Cancellation Notice
Exhibit 3 – Copy of Policy
Exhibit 4 – Motor vehicle record of Jonathan Damon
Exhibit 5 – Policy declaration page – driver listing

ORDER AND NOTICE OF APPEAL RIGHTS
The intended termination is hereby approved. MMG Insurance Company is directed to continue coverage pursuant to 24-A M.R.S.A. § 2920 until 12:01 a.m. on May 26, 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 date of this Decision and Order.

Dated May 11, 2004                                                    Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette, AU
                                                                                    Hearings Examiner
                                                                                    Designated Hearing Officer

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