Insurance cancellations for non-payments suspended for residents of disaster counties
LITTLE ROCK – Arkansas Insurance Commissioner Allen Kerr today released the following statement announcing a 60-day moratorium on the cancellation/non-renewal of policies for the non-payment of premiums by Arkansans residing in counties declared a disaster by Governor Hutchinson following the severe weather of April 26:
“In order to help Arkansans struggling with storm damage and flooding, I have issued this moratorium that applies to all types of insurance policies sold in this state. It is important to note that this action does not waive the obligation of Arkansans to pay their insurance premiums, it is only an extension of the time period to make your payment without the threat of cancellation.”
The 60-day moratorium is effective as of April 26, 2017, and affects residents of Baxter, Benton, Boone, Carroll, Clay, Cleburne, Conway, Craighead, Cross, Drew, Faulkner, Fulton, Greene, Independence, Izard, Jackson, Lawrence, Madison, Marion, Mississippi, Monroe, Montgomery, Newton, Ouachita, Perry, Prairie, Pulaski, Randolph, Saline, Searcy, Sharp, Stone, Washington, White, Woodruff, and Yell Counties who must have suffered significant property damage, injuries or related loss of life as a result of the storms.
Kerr emphasized that policyholders must request the extension offered by the moratorium from their insurance carrier. AID is encouraging carriers to also reach out to policyholders to provide relief per the terms of the moratorium, including offering assistance to policyholders in paying premiums that become due during the moratorium by either allowing a payment plan or an extension of the due date for full payment. To read the full text of Bulletin 5-2017B* covering the 60-day moratorium, please visit here.
Kerr also warns Arkansas property owners of unlicensed, non-insured contractors offering repair services and that unlicensed public adjusting is illegal in the State of Arkansas. In the aftermath of a catastrophic event in the state, insurance companies assign adjusters to process claims.
*Note: This release has been amanded to reflect additional disaster declarations.