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Carl Weber/Weber Auto v. Progressive Northern Insurance Company

Held March 28, 2013– Docket No. INS-13-2019
Decision Issued:  April 2, 2013

The named insured requested a hearing to contest the cancellation of his commercial automobile insurance policy for nonpayment of premium.  The insured denied receiving a notice of cancellation. The company presented a USPS certificate of bulk mailing to document its mailing of the notice.

Held: For the insured. 24-A M.R.S. § 2908 allows cancellation of this type of policy for nonpayment of premium when it is due, but requires a minimum 10 days’ notice to the insured prior to the effective date of cancellation. Section 2908(5)(C) states that a post office certificate of mailing to the named insured at his last known address is conclusive proof of receipt of notice on the third calendar day after mailing. However, USPS Forms 3817 (individual pieces) or 3877 (three or more pieces of mail) are the post office forms for Certificate of Mailing; Progressive instead used form 3606, Certificate of Bulk Mailing, which is not the same. Form 3606 does not provide evidence that a piece was mailed to a particular address, which is the whole point of the statutory requirement for a postal Certificate of Mailing. The forms are not interchangeable. Accordingly, Progressive was unable to establish that the notice of cancellation was mailed to the insured, and the intended cancellation is not effective.

Last Updated: April 15, 2014