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John & Alice Lacy v. Nationwide Mutual Fire Insurance Company
Docket No. INS-07-2073, Decision Issued August 24, 2007.

The insureds requested a hearing following receipt of a notice of automobile insurance nonrenewal alleging a driver’s license suspension. The insureds represented themselves at the hearing. The company submitted a sworn statement and accompanying documentation in lieu of in-person appearance.

Held: For the insured. The Maine Automobile Cancellation Control Act, 24-A M.R.S.A. §§ 2911-2924, allows policy nonrenewal if a named insured or other household resident or customary operator has a license suspended, other than other than a first or 2nd suspension under Title 29-A, section 2471, subsection 2 or section 2472, subsection 2 or a suspension under Title 28-A, section 2052, 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). In order for the cancellation notice to be effective, however, an insurer must meet the notice requirements of 24-A M.R.S.A. § 2915, which provides that “[a] notice of cancellation of a policy is not effective unless received by the named insured at least 20 days prior to the effective date of cancellation…” Section 2915 further stated that “[a] postal certificate of mailing to the named insured at the insured’s last known address is conclusive proof of receipt on the 5th calendar day after mailing.”

Based upon the postal certificate of mailing provided by the company, the insureds were given only 19 full days of notice before cancellation, not 20 days as required by § 2915. Therefore, the cancellation notice is void for lack of compliance with the notice requirement of § 2915. See Valley Forge Insurance Co. v. Concord Group Insurance Co., 623 A.2d 163 (Me. 1993). As the notice is not effective, whether the reason given for cancellation satisfies the requirements of § 2914 (4) will not be addressed.