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This proceeding arose upon a request for hearing made by Nancy Hill (the “Insured”) to contest the pending cancellation of automobile insurance coverage provided by York Insurance Company of Maine (the “Company.”) On February 26, 2004, the Company mailed a notice of cancellation effective April 12, 2004, on policy number YMZ3581031, citing “Non-Payment 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 pursuant to 24-A M.R.S.A. § 2920 on March 23, 2004, with Connie Mayette sitting as designated hearing officer pursuant to 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 submitted a sworn statement in lieu of appearance at the hearing. The Insured did not appear, nor did she submit a statement.

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

1. The Company and its predecessor entities have provided coverage for the Insured since 1984. The current policy term is December 20, 2003, to December 20, 2004, and the policy is on a 10-payment installment plan.
2. The Company issued a bill on January 28, 2004, for $166.75 due by February 17, 2004. No payment was received by February 17, 2004.
3. Another bill was issued on February 23, 2004, for $333.50 due by April 12, 2004. The bill indicated that a cancellation notice was being processed for failure to pay the minimum premium due on the prior bill. The cancellation notice was processed on February 24, 2004, and mailed on February 26, 2004.
4. A payment of $300 was received on February 24, 2004, leaving $33.50 still due.

ANALYSIS AND CONCLUSION OF LAW

Heather Rosewall, Personal Lines Senior Underwriter for the Company, stated in her affidavit that payment was not received by the due date of February 17, 2004. She testified that the next installment was now due and a subsequent bill was sent for both amounts, resulting in a minimum due to avoid cancellation of $333.50. Ms. Rosewall testified that payment of $300 was received on February 24, 2004 and that the policy would remain in force if the remaining $33.50 was received before the April 12 cancellation date. At the time the affidavit was prepared, the $33.50 was still outstanding.

The Insured did not provide any sworn testimony for the hearing record, but in her hearing request she indicated that she wants the repeated, harassing letters of cancellation stopped, as she has payment sent directly from her checking account on a monthly basis.

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.

Title 24-A M.R.S.A. § 2914(1) permits an insurer to cancel an automobile policy for nonpayment of premium if the notice is deemed received after the premium due date. "Nonpayment of premium" is defined in 24-A M.R.S.A. § 2912 as the “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, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit.” A premium installment was due under this policy by February 17th, and no payment was made by that date. The Insured made a payment after the due date which was more than the amount due on February 17th, but less than the amount due by the next regular installment date. York has indicated its willingness to continue coverage if the outstanding premium is received before the April 12th cancellation date; accordingly, if full payment of the remaining $33.50 was not received by the April 12th cancellation date, the fact that the Insured did not pay the required premium when it was due on February 17th establishes the Company’s grounds for cancellation of this policy.

INDEX OF RECORD:
Exhibit 1 – Affidavit of Heather Rosewall
Exhibit 2 – Copy of Policy
Exhibit 3 – Post Office Certificate of Mailing
Exhibit 4 – Bill due 2/17/04
Exhibit 5 – Bill due 4/12/04
Exhibit 6 – Cancellation notice effective 4/12/04

ORDER AND NOTICE OF APPEAL RIGHTS
The intended cancellation is permitted by statute. As York Insurance Company of Maine has offered on the record to continue coverage if the described payment was received before April 12, 2004, that offer shall be honored if payment is made. If payment was not received, the policy shall cancel at 12:01 a.m. on June 30, 2004, pursuant to 24-A M.R.S.A. § 3054.

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 June 28, 2004                                                    Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette, AU
                                                                                    Hearings Examiner
                                                                                    Designated Hearing Officer

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