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Ashley and Danielle Lewis v. North East Insurance Company
Docket No. INS-07-2110, Decision Issued December 17, 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 a payment due October 5 was not satisfied. The Company issued a notice of cancellation deemed received on October 9 to be effective October 25 at 12:01 a.m. unless payment of the unsatisfied amount plus the next monthly installment was made prior to that date. The insured made a partial payment on October 17, but did not remit the full minimum amount required to rescind the cancellation action before the cancellation 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 unsatisfied payment for the October 5 due date, but argued that the amounts indicated on the cancellation notice were confusing, and that the company did not provide timely notification that a partial payment would not avoid the cancellation. It is noted that Maine law does not obligate an insurer to offer an additional period of time to pay, and that it was nonpayment of the October 5 installment that triggered the legal cancellation action rather than the insufficient amount paid on the Company’s reinstatement offer. As the Company complied with statutory notice requirements, the cancellation action is upheld.