Insurance Commissioner Asks For Moratorium In Storm-impacted Areas

Arkansas Insurance Commissioner Jay Bradford has directed insurance carriers in the state to offer a 60-day moratorium on cancellation and non-renewal for non-payment of premiums for policyholders in storm-impacted areas.

The moratorium extension is not automatic, Bradford said. In order to be eligible for the 60-day moratorium, interested policyholders must contact their carrier and request the extension. They must have also suffered significant property damage, injuries, or related loss of life as a result of
the storms of April 27, 2014.

“I 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,” said Bradford.

Insurance carriers have been asked to work with impacted policyholders in repaying the premiums that would have become due during the moratorium period by either allowing a repayment plan or a further extension in repaying the amount in full. This moratorium applies only to cancellation/non-renewal that is attributed to a failure to pay premiums during the applicable 60-day period.