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Jayson Westgate dba JW Trucking v. National Casualty Company

Held October 24, 2013 – Docket No. INS-13-2098
Decision Issued:  October 30, 2013

The named insured requested a hearing to contest the cancellation of a commercial policy for nonpayment of premium to the agency.  The evidence established that premiums were not paid when due and that all statutory notice requirements were met.

Held: For the company. Maine law under 24-A M.R.S.A. §§ 2908(2)(A), 3007(2)(A) allows an insurer to cancel a policy if an insured fails to discharge when due any obligation in connection with the payment of premium on a policy of insurance subject to this section, whether the payments are payable directly to the insurer or its agent or indirectly payable under a premium finance plan or extension of credit. The company demonstrated that the insured was notified of the payment due prior to the due date, and payment was not received by that date. Accordingly, the cancellation action is permitted.

Last Updated: April 15, 2014