Extension of Grace Period

[LOGO] KAY IVEY GOVERNOR JIM L. RIDLING COMMISSIONER STATE OF ALABAMA DEPARTMENT OF INSURANCE 201 MONROE STREET, SUITE 502 POST OFFICE BOX 303351 MONTGOMERY, ALABAMA 36130-3351 TELEPHONE: (334) 269-3550 FACSIMILE: (334) 241-4192 INTERNET: www.aldoi.gov DEPUTY COMMISSIONERS JERRY WORKMAN MARK FOWLER CHIEF EXAMINER RICHARD L. FORD STATE FIRE MARSHAL SCOTT F. PILGREEN GENERAL COUNSEL REYN NORMAN # BULLETIN NO. 2020-18 TO: All Insurers and Insurance Premium Finance Companies Licensed in Alabama FROM: Jim L. Ridling Commissioner of Insurance JLR DATE: September 24, 2020 RE: Extension of Grace Period EFFECTIVE: Immediate On September 14, 2020, Governor Kay Ivey declared the existence of a state of emergency within the state of Alabama regarding Hurricane Sally. Thousands of Alabama families have suffered damages due to the hurricane. Some places still have not had electricity restored. Many citizens' homes were destroyed or severely damaged. Residential mail service has been interrupted in various locations. The situation has created a mass disruption to the normalcy we previously enjoyed. In the ordinary course of business, insurance companies and premium finance companies send notices to insureds, many of which are required by statute, giving the insured certain limited periods of time within which to pay premium or otherwise respond. Because of the storm damage, disruption of mail and the inability of many of the insureds to stay in their homes, many storm victims are currently unable to timely act or respond and need additional time within which to act in response to these notices. In light of this, I hereby issue this directive to all property and casualty insurers, all life, health, and disability insurers, and all insurance premium finance companies licensed in Alabama. As to any insurance policy provision, notice, correspondence or law which imposes a time limit upon an insured who is a victim of hurricane damage to perform any act or transmit information or funds with respect to such an insurance contract, which act was to have been performed on or after September 15, 2020, the time limit shall be extended to and including November 15, 2020. No interest, penalties, or other charges, shall accrue or be assessed, as the result of the extensions required herein. Interest owed pursuant to premium financing plans with premium finance companies or insurers or their affiliates may be assessed. Any insurer receiving a claim from an insured owing premium may offset the premium due to the insurer or a premium finance company from any claim payment made under the policy. This extension of time shall not relieve a policyholder who has a claim from Hurricane Sally from compliance with the policyholder's obligations to provide information and cooperate in the claim adjustment process relative to the property damage. This directive shall not apply to new policies issued on or after September 16, 2020. JLR/JW/RN/ct Alabama Department of Insurance Established 1897