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Peter Kovacs v. GEICO Casualty Company
Docket No. INS-05-2098, Decision Issued January 26, 2006

The insured requested a hearing following receipt of a notice of automobile insurance coverage nonrenewal citing certain use of the insured’s vehicle. At hearing, the company described the vehicle use and argued that such use is a violation of the terms of conditions of the policy. See 24-A M.R.S.A. § 2914(3). The insured testified that he uses the vehicle for a non-profit agency on a volunteer basis, and he provided supporting documentation to substantiate his position.

Held: For the insured. Although a policy may be nonrenewed under § 2914(3) for a violation of terms or conditions of the policy, section § 2902-F prohibits an insurer from refusing to insure, imposing a surcharge or otherwise increasing the rate for a motor vehicle policy solely because the applicant is a volunteer driver.

Although the policy excludes liability coverage for any vehicle used to carry passengers for hire, the company has not established that the insured is operating his vehicle for hire or that his vehicle use is contrary to any term or condition of the policy. Moreover, the insured has provided testimony and documentary evidence that he is acting as a “volunteer driver” as defined in § 2902-F. Section 2902-F effectively prohibits nonrenewal actions that are based solely upon an insured’s status as a “volunteer driver.” Thus, the company has not established grounds to nonrenew this policy.

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