60-Day COVID-19 Insurance Cancellation Moratoriums

60-Day Moratorium Against Cancellation/Non-Renewal for Non-Payment

To assist citizens who may struggle to overcome obstacles during this health emergency, the Department is hereby issuing a sixty (60) day moratorium on the cancellation/non-renewal of insurance policies for the non-payment of premiums for Arkansans:

  • Diagnosed with/positively tested for COVID-19 (Bulletin 6-2020); and
  • Terminated, laid off, or who are self-employed or an independent contractor and have experienced a cessation of work. (Bulletin 12-2020)

This moratorium shall apply to all personal lines and life and health insurance policies issued in this state.

This moratorium extension is not automatic. To be eligible for the 60-day moratorium, affected policyholders must request this extension from their insurance carriers. 

Insurance carriers may request evidence of diagnosis or employment disruption.

Citizens who apply for unemployment benefits as a result of the health emergency and are approved are presumptively subject to this moratorium.

The 60-day moratorium period, where requested by the policyholder, is effective starting from the date of issuance of Executive Order 20-03, March 11, 2020.

Policyholders are advised that this moratorium is not a waiver; it is only an extension or grace period in which to pay premiums. Insurers are directed to work with affected policyholders in paying the premiums that become due during the moratorium period by either allowing a payment plan or a further extension of the due date for the amount in full.

This moratorium applies only to cancellation or non-renewals attributed to a failure to pay premiums during the applicable 60-day period. If a policy is to be cancelled or non-renewed for any other allowable reason, the cancellation or non-renewal may be made pursuant to statutory notice requirements and for legally recognized reasons.

The Department requests that insurance companies take into consideration that persons diagnosed with COVID-19 may be unable to receive a notice of cancellation or non-renewal.

For those policies with an automatic bank draft or electronic funds transfer arrangement, the Department is aware that the policyholder must contact their financial institution for these payments to cease.  Therefore, the insurance company may continue deducting those premiums unless the policyholder contacts the insurance company and their financial institution to request that such an automatic bank draft or electronic funds transfer arrangement cease.

Any questions regarding this Bulletin should be directed to insurance.consumers@arkansas.gov at the Arkansas Insurance Department or by phone at 501-371-2600.