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Sherri Eldridge v. MMG Insurance Company

Held September 16, 2008 - Docket No. INS-08-2093
Decision Issued: September 23, 2008

The insured requested a hearing to dispute cancellation of her homeowners policy for nonpayment of premium. At hearing, the company provided evidence of the billing and payment history of the policy as well as the post office certificate of mailing to establish the mailing date of the cancellation notice. The insured conceded that payment had not been made, but argued that she had made many attempts before the due date and then after receipt of the cancellation notice to make her payment on the company’s website or on its phone payment line, and that neither system appeared to be functioning.

Held: For the company. Title 24-A M.R.S.A. § 3049(1) permits an insurer to cancel a policy when the insured does not pay the premium when due. In the present matter, the payment was not made by the installment due date. Payment methods are not limited to the company’s website or phone payment line; payment could have been tendered by mail or made at the agency. The Company’s cancellation notice was received by the Insured after the premium due date thus meeting the requirement of § 3050(1). Based on the evidence presented at the hearing, the Superintendent hereby concludes that the Company has established adequate grounds for policy cancellation.