Application Of Deductibles For Storms Of December 12, 2000 And December 25, 2000

ARKANSAS INSURANCE DEPARTMENT LEGAL DIVISION 1200 West Third Street Little Rock, AR 72201-1904 501-371-2820 FAX 501-371-2639 January 5, 2001 DIRECTIVE 1-2001 TO: ALL LICENSED PROPERTY INSURERS, TRADE ASSOCIATIONS, FARMERS MUTUAL AID ASSOCIATIONS, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT SUBJECT: APPLICATION OF DEDUCTIBLES FOR STORMS OF DECEMBER 12, 2000 AND DECEMBER 25, 2000 The recent ice storms in Arkansas have generated a number of questions from consumers regarding the application of policy deductibles. Generally a deductible is applied per occurrence. It is the Arkansas Insurance Department’s position that the ice storms of December 12, 2000 and December 25, 2000 constitute two separate occurrences. Consequently, a single deductible per policy per covered structure should apply for damage caused by the weight of snow and ice or falling objects to covered property within the time frame for each storm. Questions concerning this Directive should be addressed to the Consumer Services Division of the Arkansas Insurance Department at (501) 371-2640 or 1-800-852-5494. Questions may also be sent to the Consumer Service Division’s e-mail address at insurance.consumers@mail.state.ar.us. _______________________________ MIKE PICKENS INSURANCE COMMISSIONER