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David & Angela Stahl v. Peerless Insurance Company

Held November 20, 2012– Docket No. INS-12-2121
Decision Issued:  November 21, 2012

The named insured requested a hearing to contest the cancellation of an automobile insurance policy for nonpayment of premium.  The company failed to appear at the hearing or submit a sworn statement in lieu of appearance.

Held: For the insured. 24-A M.R.S.A. § 2920 places the burden of proof upon the insurer to establish its reason for cancellation and its compliance with applicable statutory requirements.  As the company failed to appear in person or to submit a properly sworn statement in lieu of appearance, the cancellation action was disallowed by default.

Last Updated: April 15, 2014