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Wayne Taylor v. National Grange Mutual Insurance Company

Hearing #INS-06-2048, Decision Issued May 3, 2006.

The insured requested a hearing following receipt of a notice of automobile and homeowners insurance coverage cancellations citing nonpayment of premium. At hearing, the company presented evidence of the billing and payment history on the policy as well as the post office certificate of mailing.

Held: For the company. Title 24-A M.R.S.A. §§ 2914(1) and 3049(1) permit an insurer to cancel a policy when the insured does not pay the full premium amount when due. In the present matter, the payment of $122.55 was due February 26, 2006. When no payment was received, the Company mailed cancellation notices on March 9 advising that the policies would cancel unless payment for the past due installments and current installments, totalling $222.87, were received before the cancellation date of March 26. A payment of $150 was received. The law does not require the Company to provide the Insured with an additional opportunity to pay in order to avoid cancellation. The insured had failed to discharge the obligation due on February 26, thus establishing the grounds for cancellation. The Company’s cancellation notices were deemed received by the Insured after the premium due date and sufficient notice was given, thus meeting the requirements of §§ 2914(1), 2915, 3049(1) and 3050. Based on the evidence presented at the hearing, the Superintendent hereby concludes that the Company has established adequate grounds for policy cancellation.

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