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On July 8, 2004, the Bureau of Insurance received a hearing request from Richard Bingaman (the “Insured”). On June 24, 2004, American Home Assurance Company (the “Company”) mailed a notice of cancellation effective July 10, 2004 on policy number 288-03-09. 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 July 20, 2004.

The hearing was scheduled to be held on August 11, 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. Staff representing the Company submitted a statement in lieu of appearance at the hearing, but the statement was not appropriately sworn.

ANALYSIS AND CONCLUSION OF LAW
The Superintendent of Insurance has jurisdiction over this matter pursuant to Title 24-A M.R.S.A. § 2920. The Company bears the burden of proof for establishing that statutory grounds for policy cancellation exist. The Maine Administrative Procedures Act, Title 5, M.R.S.A. § 9057 requires all witnesses to be sworn. The statement submitted by Donald Procopio on behalf of the Company was not been signed by a notary public. Therefore, the statement and its accompanying documents were not admitted into the record. As no sworn testimony was presented at the hearing, the Superintendent hereby concludes that the Company has not established adequate grounds for policy cancellation.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is not approved. American Home Assurance Company is directed to continue coverage under policy #288-03-09 without lapse. Coverage shall continue unless and until a subsequent valid notice of cancellation or cancellation 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 date of this Decision and Order.

Dated: August 12, 2004                                                Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette
                                                                                    Designated Hearing Officer

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