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Marianne McKee v. State Farm Mutual Automobile Insurance Company
Docket No. INS-07-2054, Decision Issued July 13, 2007.

The insured requested a hearing following receipt of a notice of automobile insurance 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 maintained that at the time of the accidents, the company insured three vehicles for the insured and therefore, pursuant to § 2916-A(2), the nonrenewal should be disallowed.

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 the two accidents cited by the company both occurred within the 36 months immediately preceding the yearly anniversary date of the policy and that each resulted in payment in excess of $1,000 in property damage. Each accident meets all of the other statutory elements and none of the exceptions provided in § 2916-A(2) apply.

As the insured correctly pointed out, the statute also provides that “[w]hen more than one vehicle in a household is insured by the same insurer, the aggregate number of accidents that would permit nonrenewal of the policy or policies insuring those vehicles must be increased by one for each additional motor vehicle insured.” This nonrenewal action is not based upon the aggregate number of accidents, however. In this case, both accidents involved the same driver and thus, the total number of vehicles insured does not impact the determination. All elements of § 2916-A(2) have been satisfied. The company has also demonstrated its compliance with the notice requirements of § 2917. Therefore, this nonrenewal action is permitted.