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This proceeding arose upon a request for hearing made by Denise Estes to contest the pending cancellation of automobile insurance coverage provided to Denise and Shannon Estes (the “Insureds”) by North East Insurance Company (the “Company.”) On October 18, 2004, the Company mailed a notice of cancellation effective November 18, 2004, on policy number 02180091869 citing “a recent MVR for Denise indicated the following: 06/20/04 suspension” as the grounds for cancellation. Pursuant to 24-A M.R.S.A. § 2920, the Insureds’ hearing request was made within the statutory time period.

A hearing in this matter was held on November 18, 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. Ethel Potvin, Personal Lines Manager, represented the Company at the hearing. Denise Estes represented the Insureds at the hearing.

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

1. The Company provides the subject automobile insurance policy to the Insureds. The policy term is December 16, 2003 to December 16, 2004.
2. The driver’s license of Denise Estes was suspended on June 20, 2004, for “variable suspension reason – adverse medical condition.”
3. After medical evaluation and screening tests were conducted, the suspension was deleted as of November 15, 2004, and Ms. Estes’ license was reinstated.

ANALYSIS AND CONCLUSION OF LAW
Title 24-A, M.R.S.A. § 2914 (4) permits cancellation if "the named insured or any operator who either resides in the same household or customarily operates an automobile insured under the policy has a driver's license suspended, other than a first or 2nd suspension under Title 29-A, section 2471, subsection 2 or section 2472, subsection 2, or a suspension under Title 28-A, section 2052, or revoked during the policy term or, if the policy is a renewal, during its term or the 180 days immediately preceding its effective date."

Ms. Potvin testified that Denise Estes’s license suspension of June 20, 2004, occurred during the current policy term which runs from December 2003 to December 2004. She stated that the suspension was still in effect at the time the notice of cancellation was mailed. She submitted a motor vehicle record dated October 4, 2004, and the post office certificate of mailing.

Ms. Estes agreed that her license had been suspended, but argued that the suspension had not been caused by any illegal act. She also stated that her license has been restored, and she provided a document from the Maine Bureau of Motor Vehicles dated November 15, 2004, which stated the suspension had been deleted. Ms. Potvin objected to the admission of this document, arguing that the subsequent deletion had no bearing on the fact that the license had been suspended. The objection was noted but overruled by the hearing officer.

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.

As indicated previously, 24-A M.R.S.A. § 2914(4) permits cancellation of an automobile insurance policy if a named insured experiences a driver’s license suspension during the policy period. Only the following 3 types of suspensions are listed in the statute as exceptions: (1) a first or second suspension under 29-A M.R.S.A. § 2471 (adult provisional license); (2) a suspension pursuant to 29-A M.R.S.A. § 2472 (juvenile provisional license); and (3) a suspension pursuant to 28-A M.R.S.A. § 2052 (illegal transportation of liquor by a minor.) In the present case, Ms. Estes’ license was suspended during the policy period due to an adverse medical condition. Such a suspension does not meet any of the exceptions provided in the statute. Accordingly, the Company has demonstrated that the requirements of 24-A M.R.S.A. § 2914(4) to cancel the policy at issue have been met.

INDEX OF RECORD:
Company Exhibit 1 – Cancellation Notice
Company Exhibit 2 – Post Office Certificate of Mailing
Company Exhibit 3 – Motor Vehicle Record

Insured Exhibit 1 – Hearing Request
Insured Exhibit 2 – BMV Document
Insured Exhibit 3 – Evaluation Documents

ORDER AND NOTICE OF APPEAL RIGHTS
The intended cancellation is hereby approved. North East Insurance Company is directed to continue coverage until 12:01 a.m. on December 17, 2004, unless a subsequent valid notice of cancellation or nonrenewal has been effected in accordance with applicable law. If a subsequent cancellation or nonrenewal has taken effect, the policy terminates on the date stated in the subsequent cancellation or nonrenewal notice.

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 Title 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 aggrieved nonparty whose interests are substantially and directly affected may initiate an appeal within 40 days of the date of this Decision and Order. There is no automatic stay pending appeal; application for stay may be made in the manner provided in 5 M.R.S.A. § 11004.

Dated December 2, 2004                                             Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette
                                                                                    Designated Hearing Officer

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