Policy Cancellation Moratorium

March 6, 2012 Bulletin 191 POLICY CANCELLATION MORATORIUM Due to the recent tornadoes and severe storms occurring on March 2, 2012 ("Disaster Events") that have resulted in several Indiana counties being designated as disaster areas* by State Executive Order or by Presidential declaration ("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 ofinsurance policies including all lines: A 60-day moratorium for cancellation of any insumnce policy in effect for any policyholder directly affected by t11e Disaster Events residing within the Impacted Areas, and a suspension of any penalty attached to late payment tl1erei11. 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 premiwn 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 ftuther extension in paying the amount due in full. The moratorium applies only to cancellations/non-renewals attdbuted to a failure to pay premiums directly as a result ofthe Disaster Event during the 60-day period. If a policy is to be cancelled or non-renewed for any other allowable reason, the cancellation or non-renewal may be made pursuant to the statutory notice requirements. However, the Depaitment would request insurance companies take into consideration that persons in the heavily Impacted Areas may be unable to receive a notice of cancellation or non-renewal due to evacuation or delayed postal service in that ai·ea. This moratorium will last 60 days and the Department may request an extension ofthis moratorium ifan extension is deemed appropriate. This moratorium will take effect the date ofissuance ofthis Bulletin. The Department expects insurers to apply this moratorium retroactively to March 1, 2012, the day before the Disaster Events occun-ed. 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. 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. The Department, recognizing the massive displacement ofpersonnel 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 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 *As ofthe date ofissuance ofthis Bulletin, the following Indiana counties ai·e designated as disaster areas: Clark, Gibson, Hanison, Jefferson, Posey, Ripley, Scott, Wanick, and Washington. Ifother Indiana counties are designated after the issuance ofthis Bulletin, this Bulletin will also apply to the additional counties.