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Lisa Theriault-Velten v. Bristol West Insurance Company
Docket No. INS-06-2056, Decision Issued June 26, 2006.

The insured requested a hearing to contest the attempt by the company to rescind her automobile coverage via a letter stating that the company was voiding her policy at inception. At hearing, the company argued that 24-M.R.S.A. § 2411 governs policy rescission rather than the Maine Automobile Cancellation Control Act, and then it addressed the reasons for the issuance of the letter.

Held: For the insured. The Superintendent interprets the Maine Automobile Cancellation Control Act to apply to all cancellations, effected by any means, including rescission. As the company did not comply with 24-A M.R.S.A. § 2915, requiring provision of at least 20 days notice to the insured before the cancellation effective date, inclusion of the right to request a hearing before the Superintendent of Insurance, and inclusion of the requirement of 24-A M.R.S.A. § 2921, the cancellation is not effective. The Superintendent orders the policy to remain in force until a cancellation or nonrenewal notice in compliance with the Cancellation Control Act is issued and effective.

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