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Thomas Cumler and Eddy Cumler v. Concord General Mutual Insurance Company  

Held March 20, 2012 – Docket No. INS-12-2017
Decision Issued: April 2, 2012

The insured requested a hearing following receipt of a notice of automobile insurance coverage cancellation citing nonpayment of premium, and a subsequent nonrenewal for another reason. At hearing, the company demonstrated that payment was not received when due on January 15, and that the total payment required to avoid the cancellation was not made by the cancellation date.
Held: For the company. The Maine Automobile Cancellation Control Act allows an insurer to cancel a policy if an insured fails to make a premium payment when due. See 24-A M.R.S.A. §§ 2914(1), 2912(3). The company demonstrated that an invoice was issued to the insured prior to the due date, and no payment was received. A cancellation notice was properly issued after the premium due date. Although the past due amount was paid at the agency the same day the cancellation notice was mailed, the company required the upcoming February installment also to be paid by the cancellation date in order for coverage to be reinstated, as shown in the cancellation notice. That amount was not paid. The company has demonstrated that the statutory requirements to cancel the policy have been met. Accordingly, the subsequent nonrenewal action is irrelevant.