The Illinois Department of Insurance is asking insurers to provide relief to policyholders impacted by the federal government shutdown and ensure that they do not lose insurance coverage, including a moratorium on cancellations.
“The lapse in federal appropriations since October 1, impacts more than 153,000 Illinoisans who are employees of the federal government,” stated IDOI Director Ann Gillespie. “These consumers should not have the added burden of losing insurance coverage because they are not being paid and cannot pay their auto or homeowners insurance premiums.”
The department is asking insurers to consider implementing protective measures for their policyholders who are federal employees, including:
Moratorium on cancellations: Insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after October 1, on any in-force policy due to non-payment. Insurers are asked to continue coverage in cases of unpaid premium for at least 30 days or through the duration of the federal shutdown. If an affected consumer indicates they have not yet received their compensation after the end of the federal shutdown, the department is asking that insurers continue coverage for at least an additional 30 days.
Time-period extension for repairs: If a consumer indicates to an insurer that repairs cannot be completed within the time required under any policy, or within the 90-day period for repairs before termination due to condition of the property, the department requests that insurers provide consumers with an extension of at least 30 days.
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