Important Update for Illinois Policyholders July 2017

The Illinois DOI has issued a bulletin for insurers with respect to policyholders residing in or around Cook, Kane, Lake, and McHenry counties who  may experience disruption of mail delivery and displacement from their residences, businesses, and other properties due to the flooding.

Effective immediately, we are implementing  the following guidelines set forth by the Illinois DOI with respect to all consumers affected by the disaster (“affected policyholders”) who  reside in, own, or insure any property located in or around the above named counties.

Moratorium on cancellations and nonrenewals. For any cancellation or nonrenewal notices issued on or after July 12, 2017, on any in-force policy issued to an affected policyholder or respecting affected property, insurers shall withdraw the cancellation or nonrenewal and reinstate the policy with no lapse in coverage. In addition, insurers shall not issue any new cancellation or nonrenewal notices to affected policyholders or for affected property until September 30, 2017, or a later time if deemed reasonable given an individual consumer’s circumstance.

Other insurance-related time-period extensions. Insurers are directed to grant to affected policyholders an extension of any and all policy provisions or other requirements that impose a time limit for an insured or claimant to perform any act, including the submission of a claim or proof of loss, reporting of information, submission of bills, or payment of funds. Such extension shall be for a minimum of 60 days from the last date allowed or required under the terms of the contract or allowed or required by the insurer, or longer if deemed reasonable given an individual consumer’s circumstance.

Time-period extension for repairs. In the event repairs on affected property cannot be completed within the time period required under any policy, or within the 90-day time period for repairs prior to termination due to condition of the property [215 ILCS 5/143.27], insurers shall provide consumers with an extension of not less than 60 days to make such repairs.

Cancellation or nonrenewal respecting affected property. Although otherwise allowed under Illinois law, insurers are directed to refrain from canceling or nonrenewing insurance policies respecting affected property due to “increase in the risk originally accepted” or due to the geographic location of the risk.

Other exceptions. Insurers shall consider exceptions to policy or contract requirements, or to other rating or underwriting rules not otherwise listed, when such contractual requirements or rating or underwriting rules are not met as a result of this disaster. Exceptions to policy or contract requirements or rating or underwriting rules include instances where an insured is displaced from his or her home and is unable to obtain non-emergency medical services from a network provider.