Jonesboro Tornado 60-Day Moratorium

60-Day Moratorium Against Cancellation/Non-Renewal for Non-Payment (Bulletin 14-2020)

Due to severe weather occurring in Craighead County, Governor Asa Hutchinson issued Disaster Recovery proclamation 20-06 on March 29, 2020 declaring the county a disaster area.  This severe weather has disrupted the lives of many Arkansans through severe damage, physical injury, evacuations, and the loss of basic services. 

To assist Arkansas residents struggling to overcome these obstacles, the Arkansas Insurance Department is hereby issuing a sixty (60) day moratorium on the cancellation/non-renewal of personal lines policies for the non-payment of premiums for Arkansans residing in Craighead County.

This moratorium shall apply to all insurance policies issued in this state.

This moratorium extension is not automatic.  To be eligible for the 60-day moratorium, interested policyholders must request this extension from their insurance carriers and must have suffered significant property damage, injuries, or related loss of life as a result of the severe storms occurring on March 28, 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.

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 at the Arkansas Insurance Department or by phone at 501-371-2600.