Policy Cancellation Moratorium

November 22, 2013 Bulletin 20I POLICY CANCELLATION MORATORIUM Due to the recent tornadoes and severe storms occmTing 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, Pulaski, Tippecanoe, Tipton, Vermillion, Wm.Ten, Washington, and White Counties (the "Impacted Areas"), the Indiana Department oflnsurance is calling on all insurance companies to implement the following extensions and/or grace pe1iods in the administration ofinsurance 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 ofthe grace period in which to pay the premium. After the 60 days, the policyholder will have to resume making premium payments. The Deprutment requests insurance companies work with the impacted policyholders in repaying the premiums that would have become due dwing 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/non-renewals attributed to a failure to pay premiums directly as a result ofthe Disaster Event during the 60-day period. Ifa policy is to be canceIIed or non-renewed for any other allowable reason, the cancellation or non-renewal may be made pursuant to the statutmy 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 ofcancellation or non-renewal due to evacuation or delayed postal service in that area. This moratorium will last 60 days and the Department may request an extension ofthis moratorium ifan extension is deemed appropriate. In addition, the list ofImpacted Areas could be expanded iffurther tornadoes are confirmed by the National Weather Service. This moratorium will take effect the date of issuance ofthis Bulletin. The Deprutment 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 he 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 Depru.tment, recognizing the potential displacement ofpersom1el 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$10.00 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 ofits own records without charge. INDIANADEPARTMENT OF INS~ -~),tlR. Insurance Commissioner