TN Insurance Bulletin 23-06: Tornado Recovery

Tennessee Department of Commerce and Insurance, Insurance Division 500 James Robertson Parkway, Davy Crockett Tower, 10th Floor, Nashville, TN 37243 Tel: 615-741-2176 tn.gov/commerce STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243-5065 615-741-6007 BILL LEE CARTER LAWRENCE GOVERNOR COMMISSIONER BULLETIN 23-06 TO: Tennessee-Licensed Insurance Companies, All Lines of Business FROM: Carter Lawrence, Commissioner RE: Tornado Recovery DATE: December 10, 2023 On December 9, 2023, Tennessee experienced several devastating tornadoes. These events resulted in the destruction of homes and property, the displacement of Tennesseans, as well as the tragic loss of life. Therefore, I am requesting that licensed insurance companies in Tennessee make every reasonable effort to assist policyholders who have experienced losses as a result of, or have otherwise been affected by, the tornadoes on December 9th, 2023. Specifically, I request all carriers suspend the cancelation or non-renewal of policies due to the non-payment of premium for a period of at least sixty (60) days from the date of the loss for those policyholders who have suffered property damage, injuries, or loss of life as a result of the catastrophic events. Insurers should take reasonable steps to inform affected policyholders that this extension is available. The sixty (60) day extension of time is not a waiver of a policyholder’s obligation to pay premium. If a delay in premium payment appears to be the result of a disruption to the maildelivery system or of the policyholder’s displacement due to the tornadoes, I request that insurers work with the policyholder and take those circumstances into account before canceling a policy. Further, I request insurers make the following efforts to assist citizens affected by the tornadoes: • Allow exceptions to proof-of-loss deadlines, notice requirements, and other contract or underwriting requirements; • Allow for policyholders to voluntarily enter payment plans; • Allow policyholders to temporarily postpone payment due dates in order to continue insurance coverage; • Suspend late-payment, reinstatement, or insufficient-funds fees along with any other fee, penalty, or interest charge resulting from the insured’s temporary inability to submit Carter Lawrence (Dec 11, 2023 15:08 CST) Tennessee Department of Commerce and Insurance, Insurance Division 500 James Robertson Parkway, Davy Crockett Tower, 10th Floor, Nashville, TN 37243 Tel: 615-741-2176 tn.gov/commerce premium payments; • Allow insureds to request a duplicate copy of their policy at no additional cost; • Refrain from canceling or non-renewing policies solely because of claims resulting from the tornadoes; and • Allow for one (1) early or replacement prescription refill per medication. The Department’s request for an extension and/or exception on behalf of Tennessee policyholders is not intended to address circumstances involving fraud or material misrepresentation or any other reason unrelated to hardships created by the tornadoes. Your cooperation in this effort is greatly appreciated. Any further questions should be directed to Stephanie Cope, Director of Policy Analysis, at Stephanie.Cope@tn.gov.