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Barbara & Richard Ellis v. GEICO Casualty Company

Docket No. INS-06-2083, Decision Issued August 29, 2006.

The insureds requested a hearing following receipt of a notice of automobile insurance cancellation citing a driver’s license suspension as the reason for cancellation. At hearing, the company presented a copy of the relevant driving record showing the suspension. The insureds questioned the propriety of the company’s action.

Held: For the company. Although the license had been restored prior to the hearing, the Maine Automobile Cancellation Control Act, 24-A M.R.S.A. §§2911-2924, allows policy cancellation if a named insured or other household resident or customary operator has a license suspended during the policy term, or if the policy is a renewal, within the 180 days immediately preceding its effective date. 24-A M.R.S.A. § 2914(4). The evidence shows that the license was suspended 134 days prior to the policy renewal effective date. None of the exceptions in § 2914(4) apply. The company has further demonstrated compliance with all required notice provisions. Therefore, cancellation of this policy is permitted.