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Barbara Michaud v. North East Insurance Company
Hearing #2005-16098, Decision Issued May 16, 2005.

The insured requested a hearing following receipt of a notice of automobile insurance coverage cancellation citing nonpayment of premium. At hearing, the company presented evidence of the billing and payment history on the policy as well as the post office certificate of mailing. The insured argued that she had not received either the installment bill or the cancellation notice until the day the policy cancelled and that she attempted payment immediately.

Held: For the company. Title 24-A M.R.S.A. § 2914(1) permits an insurer to cancel a policy when the insured does not pay the full premium amount when due. The insured did not make payment by the due date. The company’s cancellation notice was deemed received by the insured pursuant to 24-A M.R.S.A. § 2915 after the due date, thus meeting the requirements of § 2914(1).

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