Indiana Insurance Commissioner Jim Atterholt issued a bulletin today (June 17) calling on all insurance companies doing business in Indiana to implement a 60-day moratorium on the cancellation of any insurance policy for late payment by policyholders who live in counties impacted by the recent storms and flooding.
The bulletin also asks for a waiver of any penalties or late fees during the time of this moratorium.
“People are hurting and the last thing they need to worry about is having their various insurance policies cancelled during this very difficult time,” said Governor Mitch Daniels. This action will give policyholders in the Indiana counties impacted by the disaster an additional 60 days to pay their premiums. The 60-day moratorium begins today, June 17, 2008 but will retroactively cover the storms from their inception on May 30, 2008.
Governor Daniels asked Insurance Commissioner Jim Atterholt to find ways for the insurance industry to reduce Hoosier victims’ burden during this very difficult time. When the Commissioner approached the various insurance associations (Indiana Insurance Institute (III), Association of Indiana Life Insurance Companies [AILIC], Indiana Association of Health Plans [IAHP]), as well as individual companies within the associations, with the idea of a moratorium on cancellations, the response was extremely positive.
“The response by the insurance industry to this bulletin has been overwhelmingly supportive,” said Atterholt.
Included as well in the bulletin directed by the Governor, the Indiana Department of Insurance (IDOI) will modify its own internal policies and will grant a 60-day grace period for renewal and cancellation for all licensees, certificate holders and registrants.
Source: Indiana Department of Insurance
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