The Connecticut Insurance Department issued a bulletin encouraging insurers to provide “an extended grace period” with regard to premium payments for residences affected by storm Sandy.
“Connecticut Insurance Department encourages insurers to use all available means to provide prompt and immediate relief to those residents and policyholders, including but not limited to the suspension of premium payments to allow continuing insurance coverage,” according to the bulletin.
“In conjunction with this effort, the department will work with insurers to minimize the regulatory effects of an insurer’s suspension of premium payments, specifically in regard to financial review requirements,” the department stated.
The term ‘suspension’ is not intended to mean forgiveness of the premium, the department stated. Rather, it is intended that the insurer grant the policyholder an extended grace period for the payment of any premium due.
The department stated that insurers are encouraged to work with policyholders in the collection of premiums, including payment plans. “It is the expectation of the department that any problems resulting from this issue will be resolved between the parties without a complaint being filed,” according to the bulletin.
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