DEPARTMENT OF INSURANCE
November 22, 2013
Policy Cancellation Moratorium
Due to the recent tornadoes and severe storms occurring on November 17, 2013 (the "Disaster Events") that have resulted in severe damage to several Indiana counties – including, but not limited to, Benton, Boone, Cass, Clinton, Daviess, Fountain, Grant, Hamilton, Howard, Jasper, Knox, Kosciusko, Lawrence, Miami, Montgomery, Newtown [sic], Pulaski, Tippecanoe, Tipton, Vermillion, Warren, Washington, and White counties (the "Impacted Areas"), the Indiana Department of Insurance is calling on all insurance companies to implement the following extensions and/or grace periods in the administration of insurance policies including all lines:
A 60-day moratorium for cancellation of any insurance policy in effect for any policyholder directly affected by the Disaster Events residing within the Impacted Areas, and a suspension of any penalty attached to late payment therein.
This "moratorium" is not a waiver; it is only an extension of the grace period in which to pay the premium. After the 60 days, the policyholder will have to resume making premium payments. The Department requests insurance companies work with the impacted policyholders in repaying the premiums that would have become due during the moratorium period by either allowing a repayment plan or a further extension in paying the amount due in full.
The moratorium applies only to cancellations/nonrenewals attributed to a failure to pay premiums directly as a result of the Disaster Event during the 60-day period. If a policy is to be cancelled or nonrenewed for any other allowable reason, the cancellation or nonrenewal may be made pursuant to the statutory notice requirements. However, the Department would request insurance companies take into consideration that persons in the heavily Impacted Areas may be unable to receive a notice of cancellation or nonrenewal due to evacuation or delayed postal service in that area.
This moratorium will last 60 days and the Department may request an extension of this moratorium if an extension is deemed appropriate. In addition, the list of Impacted Areas could be expanded if further tornadoes are confirmed by the National Weather Service. This moratorium will take effect the date of issuance of this bulletin. The Department expects insurers to apply this moratorium retroactively to November 16, 2013, the day before the Disaster Events occurred. We would anticipate that this time period would overlap with existing grace periods.
In addition, the Department will modify its own internal policies by implementing a 60-day grace period relating to renewal and cancellations for all licensees, certificate holders, and registrants from the Impacted Areas who are directly affected by the Disaster Events. This includes premium tax and surplus lines premium tax filings. Any penalties assessed due to late payment during this period will be waived. The 60-day extension will also be applied to the Continuing Education Requirements to those producers from Impacted Areas who are directly affected by the Disaster Events.
The Department, recognizing the potential displacement of personnel and documents, will accept temporary address changes at no fee either electronically through Sircon.com or NIPR.com, faxed to (317) 232-5251, or by phone to (317) 232-2413. The duplicate license fee of $10 for producers from the Impacted Areas will be waived during this 60-day period. The Department stands ready to help rebuild damaged and destroyed essential insurance files by allowing copying of its own records without charge.
INDIANA DEPARTMENT OF INSURANCE
Posted: 11/27/2013 by Legislative Services Agency
Composed: Jul 24,2014 5:13:16AM EDT
version of this document.