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David Serianne v. State Farm Mutual Automobile Insurance Company
Docket No. INS-06-2009, Decision Issued March 14, 2006.

The insured requested a hearing following receipt of a notice of automobile insurance coverage nonrenewal citing two accidents as the reason for nonrenewal. At hearing, the company submitted evidence of the accidents. The insured argued that one of the accidents should have been considered as a comprehensive coverage loss rather than collision and that he was advised at the time that the loss would not impact his policy.

Held: For the company. Nonrenewal is permitted “[w]hen a named insured or any other person who operates a motor vehicle insured under the policy is individually or are aggregately involved in 2 or more vehicle accidents while operating a motor vehicle insured under the policy or under another policy issued by the same insurer for a motor vehicle in the same household, 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. 24-A M.R.S.A. § 2916-A(2). The amount provided by 29-A M.R.S.A. § 2251(1) is $1,000. The statute further provides four circumstances that are not considered accidents.

The company has demonstrated that each accident exceeded the $1,000 minimum amount and that both accidents occurred during the three years preceding the yearly anniversary date of the policy. Neither of the accidents at issue qualifies for any of the exceptions in § 2916-A(2). Based upon the evidence presented at hearing, the company has established adequate grounds for nonrenewal.

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