Arkansas Implements Moratorium on Policy Non-Renewals, Cancellations

May 12, 2014

Due the disaster declarations in several Arkansas counties following severe storms, tornadoes and floods beginning April 27, 2014, the Arkansas Insurance Department has implemented a moratorium on cancellation/non-renewal of policies for the non-payment of premiums for Arkansans residing in storm impacted areas.

The 60 day moratorium s applies to all insurance policies issued in the state.

The moratorium extension is not automatic; to be eligible for the 60 day moratorium, interested policyholders must request this extension from their insurance carriers and must have suffered significant property damage, injuries or related loss of life as a result of the storms of April 27, 2014.

Insurers are encouraged to contact their policyholders in the affected areas and work with

them in providing relief under this moratorium. The 60 day moratorium period, where requested by the policyholder, commenced effective April 27, 2014.

The department clarified that the moratorium is not a waiver; it is only an extension of the time during which policyholders may pay premiums.

Insurers are directed to work with affected policyholders in paying the premiums that become due during the moratorium period by either allowing a payment plan or a further extension of the due date for the amount in full.

The department also requests that insurance companies take into consideration that persons in the affected by the storm may be unable to receive a notice of cancellation or non-renewal due to evacuation or delayed postal and electronic delivery service in those areas.

Source: Arkansas Insurance Department

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