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Alvah and Shanna Gilson v. GEICO General Insurance Company
Docket No. INS-07-2108, Decision Issued November 26, 2007.

The insureds requested a hearing to contest the cancellation of their automobile insurance policy for nonpayment of premium. At hearing, the company demonstrated that an installment payment was due September 8, and was not paid. The Company issued a notice of cancellation on September 10 to be effective September 28, unless payment was made prior to that date. The Company agreed to accept a partial payment on September 28, and issued a subsequent notice of cancellation on October 1. Cancellation was to be effective October 18, 2007, unless the installment balance was received prior to that date.

Held: For the Company. Title 24-A M.R.S.A. § 2914(1) permits cancellation for nonpayment of premium. The Insured did not dispute the failure to pay the premium on time, but stated that he was refusing to pay the premium until the Company removed his son from the policy. He first requested the son’s removal on September 18, after the installment was past due and the first cancellation notice had been issued. The son’s removal as a rating consideration would not affect an installment that was already past due and in cancellation status. As the Company complied with statutory notice requirements, the cancellation action is upheld.