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Amy & George Bailey v. North East Insurance Company
Docket No. INS-05-2068, Decision Issued November 1, 2005.

The insureds requested a hearing regarding a notice of cancellation of automobile insurance coverage citing nonpayment of premium as the reason for cancellation. At hearing, the company presented evidence of the bill at issue, the cancellation notice, and the post office certificate of mailing demonstrating the date on which the notice was mailed. The insureds did not appear at the hearing or submit a statement in lieu of appearance.

Held: For the company. Title 24-A M.R.S.A. § 2914(1) permits an insurer to cancel a policy if the insured does not pay the full premium amount when due. The company demonstrated that an installment bill was issued and no payment was received by the due date. The company’s cancellation notice was sent to the insureds’ last known address, and it was deemed received by the insureds after the premium due date. See 24-A M.R.S.A. § 2915. Upon issuing the cancellation notice, the company offered an additional period of time to pay to avoid cancellation of the policy. However, no payment was received. The company has shown that the requirements to cancel the policy have been met.

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