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Maine.gov > PFR Home > Insurance Regulation >Administrative & Enforcement Actions > Cancellation Hearing Index > Cancellation / Nonrenewal : Docket No.INS-12-2035 Decision
Brian & Jennifer Jeffries v. State Farm Mutual Automobile Insurance Company
Held May 22, 2012– Docket No. INS-12-2035
The named insured requested a hearing to contest the cancellation of separate automobile policies due to the recent suspension of the driver’s license of one of the named insureds. The company documented that a license suspension had occurred during the term of each of the policies.
Held: Split Decision. For the company on the two personal automobile policies, for the insured on the recreational vehicle policy. The Maine Automobile Cancellation Control Act at 24-A M.R.S. § 2914(4) permits cancellation for the suspension of a driver’s license during the policy term; this statute applied to the two personal automobile policies. The recreational vehicle policy is governed by 24-A M.R.S. § 2908, and the company cited 2908(E)(2), which allows cancellation for a substantial breach of contractual duties, conditions, or warranties. The company argued that the license suspension was a breach of the duty to maintain a valid license. The Bureau did not find that the policy statement regarding the insured’s representation at the inception of the policy that no driver has had a license suspended in the last three years constitutes a duty, condition or warranty to maintain a license without suspension in the future.
Last Updated: January 16, 2014
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