Moratorium on Insurance Policy Cancellations in Effect in Arkansas.
Moratorium on Insurance Policy Cancellations in Effect in Arkansas
The Arkansas Insurance Department at the end of May announced a 60-day moratorium on the cancellation/non-renewal of policies for non-payment of premiums after Gov. Asa Hutchinson declared a State of Emergency due to the massive and ongoing flooding of the Arkansas River.
The moratorium, effective beginning May 21, applies to Arkansas insureds who have suffered significant property damage, injuries or related loss of life as a result of recent storms and flooding.
Arkansas Insurance Commissioner Alan Kerr emphasized that policyholders must request the extension offered by the moratorium from their insurance carrier.
"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," Kerr said in a statement released by the department.
AID encouraged carriers to 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.
Kerr also warned property owners against unlicensed, non-insured contractors offering repair services and said unlicensed public adjusting is illegal in Arkansas.
Loss figures from the historic flooding in the state have yet to be tallied, but media reports pegged the economic loss due to the closure of barge traffic on the Arkansas River alone at $23 million per day.
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|Article Type:||Brief article|
|Date:||Jun 17, 2019|
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