Premium Moratorium for Policyholders in Flood-Impacted Areas

[LOGO] # MISSISSIPPI INSURANCE DEPARTMENT MIKE CHANEY Commissioner of Insurance State Fire Marshal MARK HAIRE Deputy Commissioner of Insurance 501 N. WEST STREET, SUITE 1001 WOOLFOLK BUILDING JACKSON, MISSISSIPPI 39201 www.mid.state.ms.us MAILING ADDRESS Post Office Box 79 Jackson, Mississippi 39205-0079 TELEPHONE: (601) 359-3569 FAX: (601) 359-2474 # MISSISSIPPI INSURANCE DEPARTMENT BULLETIN 2011-5 TO: TO INSURANCE CARRIERS WRITING COMMERCIAL PROPERTY, HOMEOWNERS, DWELLING FIRE AND COMMERCIAL AND PERSONAL AUTOMOBILE POLICIES FROM: MIKE CHANEY COMMISSIONER OF INSURANCE DATE: MAY 17, 2011 SUBJECT: PREMIUM MORATORIUM FOR POLICYHOLDERS IN FLOOD-IMPACTED AREAS Many Mississippians stand to suffer significant losses due to the ongoing and expected flooding of the Mississippi River. As a result, Governor Haley Barbour has requested that President Obama declare fourteen (14) Mississippi counties disaster areas. Those counties include Adams, Bolivar, Claiborne, Coahoma, DeSoto, Jefferson, Humphreys, Issaquena, Sharkey, Tunica, Warren, Washington, Wilkinson and Yazoo. To assist Mississippians struggling to overcome these obstacles, the Mississippi Insurance Department ("Department") is hereby issuing a sixty (60) day moratorium on the cancellation/non-renewal of policies for the non-payment of premiums for Mississippians residing in flood-impacted areas. This moratorium shall apply to commercial property, homeowners, dwelling fire and commercial and personal automobile policies. This moratorium extension is not automatic; to be eligible for the moratorium, interested policyholders must request this extension from their insurance carriers and must have suffered significant property damage, injuries or related loss of life or other hardship as a result of flooding. Likewise, insurers are encouraged to contact their policyholders in the impacted areas and to work with them in providing relief under the moratorium where the circumstances so justify. Policyholders are advised that this moratorium is not a waiver; it is only an extension or grace period in which to pay the premiums. Insurers are directed to work with 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 repaying the amount in full. This moratorium applies only to cancellations/non-renewals that are attributed to a failure to pay premiums during the applicable 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 statutory notice requirements. However, the Department requests that 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 area. For those policies with an abd/eft arrangement, the Department is aware that the policyholder must contact their financial institution for these payments to cease. Therefore, the insurance company may continue deducting those premiums unless the policyholder contacts the insurance company, requests that such payments cease, and the policyholder contacts their financial institution and requests that this arrangement cease. Issued this the 17th day of May, 2011. MIKE CHANEY COMMISSIONER OF INSURANCE