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James Steele v. State Farm Mutual Automobile Insurance Company
Docket No. INS-06-2047, Decision Issued May 17, 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 provided documentation demonstrating the date and circumstance of each accident as well as the amounts paid. The insured questioned the propriety of the company’s action.

Held: For the company. Pursuant to 24-A M.R.S.A. § 2916-A(2), the Maine Automobile Insurance Cancellation Control Act provides grounds for policy nonrenewal when a named insured or any other person who operates a motor vehicle insured under the policy is involved in two or more accidents that result in either personal injury or property damage in excess of $1,000.
The evidence presented indicates that the accidents meet all of the elements of § 2916-A(2), and none of the exceptions provided in § 2916-A(2) apply. A company may only nonrenew a policy at the annual anniversary date of the policy’s original inception date, and accordingly, the company has demonstrated that the nonrenewal effective date coincides annual anniversary date of the policy. The company has further provided adequate notice of the nonrenewal action pursuant to § 2917. The company has established all requirements to cancel this policy under the Maine Automobile Insurance Cancellation Control Act.

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