Archives: 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008

 

FINDINGS AND DECISION
In RE: Milton Wright vs. State Farm Mutual Automobile Insurance Company	Hearing 2005-15727 Decision Issued February 9, 2005

This proceeding arose upon a request for hearing made by Milton Wright (the “Insured”) to contest the pending nonrenewal of automobile insurance coverage provided by State Farm Mutual Automobile Insurance Company (the “Company.”) On January 4, 2005, the Company mailed a notice of nonrenewal effective February 11, 2005, citing “driving record of Milton Wright: 05/18/04 negligent accident, 05/06/04 negligent accident” 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 February 2, 2005, 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. Glenn Oliphant, Underwriting Team Manager, submitted a sworn statement on behalf of the Company in lieu of appearance at the hearing. The Insured represented himself at the hearing.

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

1. The Company insures one automobile for the Insured under the subject policy. The subject policy term is August 11, 2004 to February 11, 2005. This policy was first written effective February 11, 1999.
2. On May 6, 2004, the Insured struck another vehicle from behind when both vehicles were in the process of merging into traffic. The Company paid $2,295 for damage to the other vehicle, and $573 under the Insured’s collision coverage.
3. On May 18, 2004, the Insured went off the road when he briefly blacked out due to medication issues. The medication levels have since been adjusted. The Company paid $2,046 under the Insured’s collision coverage.

ANALYSIS AND CONCLUSION OF LAW
The Maine Automobile 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. 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:

• the vehicle was struck from the rear;
• the vehicle was struck while parked;
• only the operator of the other vehicle was convicted of a crime, offense or violation contributing to the accident; or
• the insured or insurer was reimbursed by or on behalf of the person responsible for the accident, or has a judgment against that person.

Mr. Oliphant stated in his affidavit that the two referenced losses provide grounds for nonrenewal under 24-A M.R.S.A. § 2916-A(2). He submitted documentation of each claim which identified the policy, the driver, the vehicle, the date and circumstances of the loss, and the amounts paid.

Mr. Wright disputed that the accidents were negligent as indicated in the nonrenewal notice, and stated that neither accident was his fault. He testified that the other driver was at fault for stopping suddenly instead of proceeding out into the traffic lane in the May 6, 2004, accident. He further testified that regarding the May 18, 2004, accident, his medications had caused him to become dizzy. He stated that he began to pull over to stop the vehicle, but blacked out before he could safely stop. He submitted a letter from his doctor indicating that he has had no further issues with medications. He stated that the prescriptions and dosages were adjusted following that event.

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.

As indicated above, section 2916-A (2) permits an insurer to nonrenew when a named insured while driving an insured vehicle is involved in two accidents exceeding $1,000 during the 36-month period before the anniversary date of the policy. The Company has demonstrated that the Insured was involved in two accidents while driving an insured vehicle and that both accidents exceeded the $1,000 threshold. The Company has further shown that the accidents occurred within the statutory time frame. None of the exceptions provided by § 2916-A apply. Therefore, the nonrenewal action is permitted by Maine law.

INDEX OF RECORD:
Company Exhibit 1 – Affidavit of Glenn Oliphant.
Company Exhibit 2 – Post office certificate of mailing.
Company Exhibit 3 – Loss Documents 5/06/04.
Company Exhibit 4 – Loss Documents 5/18/04.
Company Exhibit 5 – Policy Summary.
Company Exhibit 6 – Copy of Policy.

Insured Exhibit 1 – Hearing Request & Copy of Notice.
Insured Exhibit 2- Letter from Robert S. Charkowick, the Insured’s Physician.

ORDER AND NOTICE OF APPEAL RIGHTS
The intended nonrenewal is approved. State Farm Mutual Auto Insurance Company is directed to continue coverage pursuant to M.R.S.A. 24-A § 2920 until 12:01 a.m. on February 24, 2005, to provide an opportunity for the policyholder to obtain other coverage. Coverage shall continue until that date 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 February 9, 2005                                               Alessandro A. Iuppa
                                                                                    Superintendent of Insurance

                                                                                    ____________________________________
                                                                                    by Connie Mayette
                                                                                    Designated Hearing Officer

 

---

Return to Cancellation / Nonrenewal Hearing Decisions

Maine.gov | Professional and Financial Regulation | Privacy | Accessibility | Disclaimer