Tennessee Regulator Places Moratorium on Policy Cancellation of Tornado Victims

March 18, 2020

The Tennessee Department of Commerce & Insurance (TDCI) has issued a directive to all licensed Tennessee insurance carriers that cancellations/non-renewals for non-payment of insurance premiums on all lines are to be suspended for up to 60 days for Tennessee insurance policyholders affected by the March 3, 2020 storms.

The directive affects policyholders in Benton, Humphreys, Dickson, Cheatham, Davidson, Wilson, Smith, and Putnam counties. Health, home and auto policyholders cannot have their policies canceled for non-payment for 60 days per an executive order fro Governor Bill Lee.

“Governor Lee’s order demonstrates to consumers that our Department and all of state government stand with our fellow Tennesseans during rebuilding and recovery,” said TDCI Commissioner Hodgen Mainda. “These devastating storms may have been strong, but Tennesseans’ resilience is stronger. I am proud of the recovery efforts thus far and proud that we are helping keep Tennessee strong.”

If consumers in an affected county discover a policy cancellation or if they have a question about their policies, they are encouraged to contact the department or file a complaint online or by phone at (615) 741-2218.

“If you were impacted by the March tornadoes and your insurance carrier cancels your policy for non-payment and will not reinstate you at no cost and at the same premium, contact our team immediately and file a complaint,” said TDCI Assistant Commissioner Rachel Jrade-Rice. “We are here to help Tennesseans recover and rebuild.”

Last year, the TDCI team returned over $4.27 million to Tennessee consumers as a result of mediation efforts – a process where TDCI insurance investigators intercede between insurance companies and policyholders to get wrongfully denied claims overturned and paid for policyholders.

The 60-day extension is not a waiver of a policyholder’s obligation to pay a premium. Where a delay in a premium payment appears to be the result of a disruption to the mail delivery system or to the policyholder’s displacement due to the tornadoes, TDCI has requested insurers work with the policyholder and take those circumstances into account before policy cancellation.

Source: Tennessee Department of Commerce & Insurance

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