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Robert Howe & Kathleen Coleman v. Union Mutual Fire Insurance Company
Docket No. INS-06-2159, Decision Issued January 30, 2007.

The insureds requested a hearing to contest the cancellation of their personal package policy for nonpayment of premium. At hearing, the company demonstrated that an installment payment was due November 12, 2006, and was not paid. The Company issued a notice of cancellation on November 20 to be effective December 7, 2006, unless payment was made prior to that date. No payment was received.

Held: For the Company. Title 24-A M.R.S.A. §§ 2914(1) and 3049(1) permit cancellation for nonpayment of premium. The Insured did not dispute the failure to pay the premium on time, but stated that his bank’s online payment service had failed to process the scheduled payment. He did not recall receiving the notice of cancellation, although the Company provided a post office certificate of mailing to substantiate its issuance. Payment of the premium is ultimately the insured’s responsibility even if it has been delegated to a third party. As the Company complied with statutory notice requirements, the cancellation action is upheld.