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On May 7, 2004, the Bureau of Insurance received a hearing request from Lynn H. Bell (hereinafter the “Insured”). On April 30, 2004, Metropolitan General Insurance Company (hereinafter the “Company”) mailed a notice of cancellation effective May 20, 2004 on policy number 6209373020. The notice stated “Nonpayment of Premium” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 2920, the insured's hearing request was timely. The Bureau scheduled a hearing and sent notice to the parties on May 7, 2004.

The hearing was scheduled to be held on May 27, 2004 pursuant to 24-A M.R.S.A. § 2920 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. The burden of proof lay with the Company. The Company did not send a representative to the hearing, nor was a sworn statement provided in lieu of attendance.

ANALYSIS AND CONCLUSION OF LAW

24-A M.R.S.A. 2916-A permits an insurer to cancel a policy for nonpayment of premium, fraud or material misrepresentation, violations of terms or conditions of the policy, or suspension of the drivers license of the named insured or any customary or resident operator. 24-A M.R.S.A. § 2920 requires the insurer to establish the proof or evidence of its reason for cancellation.

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 cancellation exist. As no evidence was provided at the hearing, the Superintendent hereby concludes that Metropolitan General Insurance Company has not established adequate grounds for policy cancellation.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is not approved. Metropolitan General Insurance Company is directed to continue coverage under policy #6209373020 without lapse. Coverage shall continue unless and until a subsequent valid notice of cancellation or nonrenewal is effected in accordance with applicable law.

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: June 1, 2004                                                     Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette, AU
                                                                                    Hearings Examiner
                                                                                    Designated Hearing Officer

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