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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Hearing No. 2006-2105 Decision
Kris Konecki v. GEICO Indemnity Company
Docket No. INS-06-2105, Decision Issued October 19, 2006.
The insured requested a hearing following receipt of a notice of cancellation of automobile insurance coverage citing misrepresentation in the sales application and lack of disclosure of a driver on the policy as the grounds for cancellation. At hearing, the company alleged that it paid three at fault accidents in which the insured was not a driver of one of the insured vehicles. The company representative argued that the other driver should be insured by the substandard market and that the insured knowingly obtained this insurance for him without disclosure to the company. The company also alleged that the insured’s failure to disclose the other driver constitutes a violation of the policy terms and conditions. The insured denied the company’s allegations.
Held: For the insured. Under the Maine Automobile
Cancellation Control Act, 24-A M.R.S.A. § 2914(2) permits cancellation
for fraud or material misrepresentation affecting the policy or the
presentation of a claim. Section 2914(3) permits cancellation for the
violation of terms or conditions of the policy. However, at hearing,
an insurer must prove the existence of the reason given for cancellation.
See Bureau of Insurance Rule Chapter 355 § 7(A).
Last Updated: January 16, 2014
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