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This proceeding arose upon a request for hearing made by Linda Senecal (the “Insured”) to contest the pending nonrenewal of automobile insurance coverage provided by Liberty Mutual Fire Insurance Company (the “Company”). On October 29, 2004, the Company mailed a notice of nonrenewal effective December 7, 2004, on policy number AO2-212-383856-113 1 citing “Loss History: 07/23/2004 At Fault Accident $3,223 Linda; 11/03/2003 At Fault Accident $6,063 Linda” as the grounds for nonrenewal. Pursuant to 24-A M.R.S.A. § 2920, the Insured's hearing request was made within the statutory time period.

A hearing in this matter was held on December 1, 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 nonrenewal. Asha Patel, Underwriter, submitted a sworn statement 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 provides automobile insurance to the Insured; the subject policy term is December 7, 2003 to December 7, 2004.
2. On November 3, 2003, the Insured drove through a marked intersection without stopping, and hit another vehicle. The Company paid $1,559 in property damage liability to the other party and $4,504 for damage to the insured vehicle.
3. On July 23, 2004, the Insured was unable to stop her vehicle due to heavy rain during a severe thunderstorm and rear-ended another vehicle. The Company paid $3,223 for damage to the insured vehicle; the other vehicle was not damaged.

ANALYSIS AND CONCLUSION OF LAW
The Maine Automobile Insurance Cancellation Control Act permits nonrenewal of an automobile insurance policy"[w]hen a named insured or any person who operates a motor vehicle insured under the policy is individually or are aggregately involved in 2 or more motor vehicle accidents while operating a motor vehicle insured under the policy…resulting in either personal injury or property damage in excess of the amount defined as a reportable accident under Title 29-A, section 2251, subsection 1" during the 36-month period preceding the yearly anniversary date of the policy. See 24-A M.R.S.A. § 2916-A(2). The amount provided by 29-A M.R.S.A. § 2251(1) is $1,000. Section 2916-A(2) further identifies four circumstances which are not considered accidents, including when (1) the vehicle is struck from the rear; (2) the vehicle is struck while parked; (3) only the operator of the other vehicle involved in the accident was convicted of a crime, offense or violation contributing to the accident; and (4) reimbursement is received from or on behalf of the person responsible for the accident or a judgment has been obtained against that person.

Ms. Patel stated in her affidavit that the Insured has had two losses exceeding $1,000 in damages within the 36 months prior to the renewal date. She provided details of the accidents in her written testimony. Although she did not provide documentary evidence of the accidents, Ms. Senecal acknowledged that the accidents occurred as presented by the Company. She argued, however, that the July 23, 2004, accident was the result of extremely severe weather conditions and that several other accidents occurred in the same area that day. She testified that she had never had an accident prior to these two occurrences. She further argued that nonrenewal of the policy would create an undue economic hardship to her family.

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 nonrenewal exist. Based on the evidence presented at the hearing, the Superintendent hereby concludes that the Company has established adequate grounds for policy nonrenewal.

The Maine Automobile Insurance Cancellation Control Act (the “Act”) permits an insurer to nonrenew a policy if the named insured, while driving an insured vehicle, is involved in two motor vehicle accidents exceeding $1,000 in damages during the 36 months prior to the expiration date of the policy. The evidence indicates that the Insured was involved in two motor vehicle accidents during the 36 months preceding the annual anniversary date of December 7, 2004, while driving a vehicle insured under the policy. Each accident exceeded $1,000 in damages. Although the Insured argued that one of the accidents should not be counted, its circumstances are not included as any of the exceptions provided by § 2916-A(2). Accordingly, the nonrenewal action is permitted by statute.

INDEX OF RECORD:
Company Exhibit 1 – Affidavit of Asha Patel
Company Exhibit 2 – Post Office Certificate of Mailing
Company Exhibit 3 – Governing Statutes
Company Exhibit 4 – Copy of Policy

Insured Exhibit 1 – Hearing Request

ORDER AND NOTICE OF APPEAL RIGHTS
The intended nonrenewal is approved. Liberty Mutual Fire Insurance Company is directed to continue coverage pursuant to M.R.S.A. 24-A § 2920 until 12:01 a.m. on December 28, 2004 to provide an opportunity for the policyholder to obtain other coverage. Coverage shall continue until that time unless a subsequent valid notice of cancellation of the policy has been effected in accordance with applicable law. If such cancellation has taken effect, the policy will instead terminate on the date stated in that cancellation 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 13, 2004                                           Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette
                                                                                    Designated Hearing Officer

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