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Margo Slattery v. GEICO Indemnity Company
Docket No. INS-05-2043, Decision Issued August 17, 2005.

The insured requested a hearing following receipt of a notice of automobile insurance coverage cancellation citing nonpayment of premium. At hearing, the company maintained that the second installment on the policy was not paid when due, and as a result the cancellation notice was issued. The company representative testified that no payment was received prior to the cancellation effective date. The insured did not appear at the hearing, nor did she submit a statement in lieu of appearance.

Held: For the company. The Maine Automobile Cancellation Control Act allows an insurer to cancel a policy if an insured fails to make a premium payment when due. See 24-A M.R.S.A. §§ 2914(1), 2912(3). The company demonstrated that an installment bill was issued, and no payment was received by the due date. A cancellation notice was properly issued after the premium due date. Upon issuing the cancellation notice, the company offered an additional period of time for the payment to be made in order to avoid cancellation of the policy, but the insured did not make the payment. The company has demonstrated that the statutory requirements to cancel the policy have been met.

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