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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No. INS-10-2018 Decision
Dennis Simard v. Union Mutual Fire Insurance Company
Held April 6, 2010 - Docket No. INS-10-2018
The named insured requested a hearing to contest the cancellation of a personal package policy because of a driver’s license suspension. The policy in question insures more than 4 vehicles, and is therefore not governed by the Auto Cancellation Control Act reasons in 24-A M.R.S.A. § 2914, but by 24-A M.R.S.A. § 2908. The company did not establish grounds for cancellation under section 2908, nor does the policy contain cancellation grounds equivalent to that statute.
Held: For the insured. 24-A M.R.S.A. § 2908 does not specifically allow cancellation due to a license suspension, and the company did not establish any provision of section 2908 that would apply. Additionally, the company is also limited to the grounds appearing in the policy contract, and it did not explain how its cancellation provision relating to license suspension contains any of the statutory grounds in 2908. Further, even if 24-A M.R.S.A. §2914(4) applied or the company related it to the governing cancellation statute, the company’s action would still have failed, as its contractual provision only allows cancellation for a license suspension other than a first or second suspension. As the policy itself does not allow cancellation for a driver’s first or second suspension, the action fails.
Last Updated: January 16, 2014
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