Alabama Gov. Bob Riley and Insurance Commissioner Walter Bell on Wednesday directed insurance companies in Alabama to provide a 60-day grace period on non-payment of premiums to citizens affected by Hurricane Ivan. The period begins retroactive to Sept. 15 and ends Nov. 15.
“Victims of this disaster need time to rebuild their lives,” Governor Riley said. “This grace period will help victims focus their attention on the most immediate needs of their families rather than on worries over insurance payments.”
Ordinarily, companies are within their rights to cancel policies for non-payment of premium. Because of the disruption of mail service and the inability for some Alabamians to reach their homes, the companies are being directed by the state to suspend cancellations until Nov. 15.
Citizens are still required to pay their premiums under the contract of the policy, and companies may deduct from claims payments any premium owed during this period.
In order to receive the grace period, a person must have a Hurricane Ivan-related claim.
The directive does not apply to policies sold on or after Sept. 16, the day Hurricane Ivan struck the state.
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