60-Day Insurance Moratorium for Flood Victims
Insurance cancellations for non-payments suspended
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 affected by the flooding of the Arkansas River under Governor Hutchinson’s May 24 declaration of a State of Emergency in Arkansas:
“In order to render maximum assistance to Arkansans struggling with storm damage and flooding, I have issued this moratorium applying 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 May 21, 2019, and affects Arkansans who have suffered significant property damage, injuries or related loss of life as a result of the storms and flooding. Kerr emphasized that policyholders must request the extension offered by the moratorium from their insurance carrier.
AID encourages 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 4-2019 covering the 60-day moratorium, please visit https://insurance.arkansas.gov/site/assets/files/3512/4-2019.pdf.
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.
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