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On July 28, 2004, the Bureau of Insurance received a hearing request from Gary Goldsmith (the “Insured”). On June 28, 2004, National Grange Mutual Insurance Company (the “Company”) mailed a notice of cancellation effective July 15, 2004 on policy number ACCR22181. 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 August 6, 2004.

The hearing was scheduled to be held on August 25, 2004 at 11:00 a.m. 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. At the scheduled time of the hearing, the Insured was in attendance, but no representative of the Company appeared nor was a sworn statement received in lieu of attendance. A statement was subsequently delivered to the Bureau of Insurance after the record was closed.

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 their reason for cancellation. The Company addressed its statement to an incorrect address, thus delaying delivery of the statement until after the scheduled time of the hearing. As the record had been closed and the hearing ended, the statement was inadmissible.

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 National Grange Mutual Insurance Company has not established adequate grounds for cancellation of this policy.

ORDER AND NOTICE OF APPEAL RIGHTS

The intended cancellation is not approved. National Grange Mutual Insurance Company is directed to continue coverage under policy #ACCR22181 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 date of this Decision and Order.

Dated: August 25, 2004                                                Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette
                                                                                    Designated Hearing Officer

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