Company Bulletin 2017-03 Effective 7/12/17 - 9/30/17
As a result of the impact of the recent significant flooding in Illinois, Governor Bruce Rauner has declared Cook, Kane, Lake and McHenry Counties disaster areas. As a result, the Illinois Department of Insurance has issued Company Bulletin 2017-03 requiring IL licensed insurance companies to make reasonable efforts to assist policyholders impacted by the flooding in the named counties.
Specifically, there is a moratorium on cancellations and non-renewals. Insurers must withdraw any cancellation or non-renewal notice issued on or after July 12, 2017, on any in-force policy issued to an affected policyholder and/or property. Insurers shall not issue any new cancellation or non-renewal notice to an affected policyholder until September 30, 2017, or a later time if deemed reasonable given an individual consumer’s circumstance.
In addition, insurers must grant an extension to affected policyholders for all policy related provisions that impose a time limit for taking action, including payment of bills. This extension shall be for a minimum of 60 days from the last date allowed or required under the terms of the contract or allowed or required by the insurer. A longer time frame shall be granted if deemed reasonable based on the individual consumer’s circumstances.
As a result, we are putting in place a moratorium until September 30, 2017 for all cancellations and non-renewals in the affected counties (Cook, Kane, Lake and McHenry), as well as a grace period for affected policyholders to pay premium. This is not a waiver; it is only an extension or grace period in which to pay premiums.
In addition to the suspension noted above, insurers are requested to allow policyholders an additional 60 days to make repairs to property on any policy where cancellation or non-renewal is based on the requirement to make repairs within 90 days under IL statute 215 ILCS 5/143.27. Insurers are also directed to refrain from canceling or non-renewing insurance policy respected affected property due to increase in risk originally accepted or due to the geographic location of the risk. Finally insurers are requested to consider exceptions to policy requirements or rating or underwriting rules which are not met as a result of the disaster.
The Department of Insurance is available for filing a complaint regarding any disaster-related dispute or issue. Consumers shall be advised they may call the Department’s toll-free complaint hotline at 1-866-445-5364, or file a complaint online at: https://mc.insurance.illinois.gov/messagecenter.nsf