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Rodney & Karen Gauthier v. Patrons Oxford Insurance Company

Docket No. INS-06-2097, Decision Issued September 12, 2006.

The insured requested a hearing following receipt of a notice of automobile insurance coverage nonrenewal citing three accidents as the reason for nonrenewal. At hearing, the company provided evidence 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 personal injury or property damage in excess of $1,000. Section 2916-A(2) further identifies four circumstances that are not considered accidents for the purpose of a nonrenewal action.

The evidence presented indicates that two of the accidents cited by the company occurred within the 36 months immediately preceding the yearly anniversary date of the policy. Both accidents meet the statutory elements and none of the exceptions provided in § 2916-A(2) apply. Although the insured disputed the amount of one of the accidents, the company paid in excess of $1,000 for property damage, and the policy contract gives the company the right to settle, as it deems appropriate, any claim asking for damages for property damage for which an insured is legally responsible. The company has also demonstrated its compliance with statutory notice requirements. The company has established the requirements to cancel this policy under the Maine Automobile Insurance Cancellation Control Act.