In the aftermath of devastating April storms, the Arkansas Insurance Department issued a 60-day moratorium on the cancellation/nonrenewal of insurance policies for the nonpayment of premiums for Arkansans residing in storm-impacted areas. The moratorium applies to all insurance policies issued in the state.
The moratorium is not automatic. To be eligible, interested policyholders must contact their carrier and request the extension. They also must have suffered significant property damage, injuries or related loss of life as a result of the storms of April 14, 2011, through April 27, 2011.
“I do want to remind policyholders that this is not a permanent waiver, merely a grace period of 60 days in which to pay premiums while they get their lives back in order,” Bradford said in a statement released by the department.
Insurers are being asked to work with those affected by the storms on a repayment plan or to grant a further extension in repaying the full amount.
This moratorium applies only to cancellation/nonrenewal that is attributed to a failure to pay premiums during the applicable 60-day period. Insurance companies are reminded that persons in heavily impacted areas may be unable to receive a notice of cancellation or nonrenewal due to evacuation or delayed postal service.
Was this article valuable?
Here are more articles you may enjoy.