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Gail Mehlhorn v. Patriot Insurance Company

Held May 18, 2011 – Docket No. INS-11-2034
Decision Issued: June 2, 2011

The named insured requested a hearing to contest the cancellation of her automobile insurance policy for nonpayment of premium, and disputed the inclusion of a licensed family member in the household on her policy. The record shows that the policyholder’s son has a driver’s license and resides in her household, and has no vehicle of his own or other insurance. In addition, the company demonstrated that statutory notice requirements were met.

Held: For the company. 24-A M.R.S.A. § 2914(1) allows cancellation for nonpayment of premium. The additional premium applied to the policy in October 2010 and has been in dispute since that time. Although the policyholder argued that her son is not driving at this time and cannot drive her car because it does not have the adaptations which his license requires, as a resident family member the son is covered under the policy for the use of any auto. Accordingly, the company is entitled to include him in the rating. As the company complied with all statutory requirements and the premium remains unpaid, the cancellation is permitted.