Multiple States Issue Policy Cancellation Moratorium Following Severe Weather

Multiple States Issue Policy Cancellation Moratorium Following Severe Weather

As a result of the severe storms and tornadoes on March 31, 2023 and April 1, 2023, the Arkansas Insurance Department (AID) and the Indiana Department of Insurance (IDOI) issued bulletins to insurers implementing a policy cancellation moratorium. 

 

Arkansas

  • AID issued Bulletin 4-2023 on April 3, 2023.
  • The Bulletin implements a sixty (60) day moratorium on the cancellation and non-renewal of personal lines policies for the non-payment of premiums for Arkansans.
  • The moratorium applies to all insurance policies issued which cover risks in Cross, Lonoke, and Pulaski counties.
  • The moratorium extension is not automatic. To be eligible for the 60-day moratorium, interested policyholders must request this extension from their insurance carrier and must have suffered significant property damage, injuries, or related loss of life as a result of the severe storms occurring on March 31, 2023.
  • Questions should be directed to the AID at insurance.consumers@arkansas.gov or by phone at 501-371-2600.

 

Indiana

  • IDOI issued Bulletin 268 on April 4, 2023.
  • The Bulletin implements: 
    • (1) a 60-day moratorium for cancellation of any insurance policy in effect for any policyholder residing within Allen, Cass, Clinton, Howard, Johnson, Morgan, Owen, Sullivan, and White counties who was directly affected by the tornadoes and severe storms that occurred on March 31, 2023 and April 1, 2023; and
    • (2) a suspension of any penalty attached to late payment therein.
  • The IDOI may request an extension of this moratorium if an extension is deemed appropriate.

 

Further information and specifics about these moratoriums are outlined within the respective bulletins:

Link to AID Bulletin 4-2023

Link to IDOI Bulletin 268