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Shirley Lewis & John Wooster v. Kemper Independence Insurance Company

Held August 27, 2009 – Docket No. INS-09-2085
Decision Issued: August 31, 2009

The insureds requested a hearing following receipt of a notice of automobile insurance nonrenewal alleging a driver’s license suspension.

Held: For the insured. In order for a cancellation notice to be effective, 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.