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Robert Story v. Concord General Mutual Insurance Company

Docket No. INS-10-2017, Decision Issued: April 8, 2010

The insured requested a hearing to contest the cancellation of his automobile insurance policy for nonpayment of premium. At hearing, the company demonstrated that a payment due February 9 was not satisfied. The Company issued a notice of cancellation deemed received on February 17 to be effective February 28 at 12:01 a.m. unless payment of the unsatisfied amount plus the next installment was made prior to that date. The insured made a partial payment on February 22, 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 invoice for the February 9 due date, but argued that he had never received notices, bills and communications from the company since his recent move to a new address during December of 2009. The company was notified of this new address on February 9, 2010 and processed the change the same day. The notice of cancellation was mailed to this new address. Title 24-A, M.R.S.A. § 2915 states that a postal service certificate of mailing to the named insured at the insured's last known address is conclusive proof of receipt on the fifth calendar day after mailing, and that it was nonpayment of the February 9 invoice that triggered the legal cancellation action. As the company complied with statutory notice requirements, the cancellation action is upheld.