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This proceeding arose upon a request for hearing made by Marilyn Winter (the “Insured”) to contest the pending cancellation of automobile insurance coverage provided by Concord General Mutual Insurance Company (the “Company”). On March 18, 2004, the Company mailed a notice of cancellation effective April 5, 2004, on policy number B8312734, 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 pursuant to 24-A M.R.S.A. § 2920 on April 28, 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 proof or evidence given by the Company to support its reason for policy cancellation. Carla Aversa, Customer Service Manager for the Company, submitted a sworn statement on the Company’s behalf in lieu of appearance at the hearing. The Insured represented herself at the hearing.

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

1. The Company has provided automobile insurance for the Insured for at least two years.
2. A premium payment was due March 13, 2004. When payment was not received, a notice of cancellation for nonpayment of premium was mailed March 18, 2004.
3. The notice of cancellation stated that the cancellation was effective at 12:01 a.m. on April 5, 2004. It also stated that the policy can not be reinstated unless payment is received prior to the cancellation date and time shown above.
4. The Insured attempted to make payment on April 6, 2004.

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." See 24-A M.R.S.A. § 2912(3). Section 2914(1) further provides that no cancellation notice is effective “unless deemed received…after the premium due date.”

Ms. Aversa stated in her affidavit that payment was not received from the Insured by April 5, and provided a copy of the Insured’s billing history. She noted that of the last 17 billings, 15 resulted in the issuance of notices of cancellation for nonpayment of premium.

Ms. Winter did not dispute that the payment was untimely made and also stated that she had received the bill preceding the notice of cancellation. She testified that she wanted a hearing to find out if the Company could refuse to write her a new policy.

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 governing statute permits an insurer to cancel a policy when the insured does not pay the full premium amount when due. The law does not require the Company to provide the Insured with additional opportunity to pay in order to avoid cancellation. In the present matter, the premium was due on March 13, 2004. The Insured did not make payment by that date. The Company’s cancellation notice was received by the Insured after the premium due date thus meeting the requirement of § 2914(1). Based on the evidence presented at the hearing, the Superintendent hereby concludes that the Company has established adequate grounds for policy cancellation.

INDEX OF RECORD:
Exhibit 1 – Affidavit of Carla Aversa
Exhibit 2 – Postal Certificate of Mailing
Exhibit 3 – Cancellation Notice
Exhibit 4 – Policy Billing History
Exhibit 5 – Copy of Policy

ORDER AND NOTICE OF APPEAL RIGHTS
The intended termination is hereby approved. Concord General Mutual Insurance Company is directed to continue coverage under Policy #B8312734 pursuant to 24-A M.R.S.A. § 2920 until 12:01 a.m. on August 4, 2004, to provide an opportunity for the policyholder 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 July 20, 2004                                                     Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    By Connie Mayette, AU
                                                                                    Hearings Examiner
                                                                                    Designated Hearing Officer

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