On September 7, 2021, the Tennessee Insurance Commission issued Bulletin 21-02 regarding flood recovery. The Commission requests that insurers make every reasonable effort to assist policyholders who have experienced losses as a result of, or have otherwise been affected by the severe weather and flooding on August 21, 2021, in Dickson, Hickman, Houston, and Humphreys counties. Specifically, Commissioner Lawrence requests:
- Cancellations or non-renewals of policies for non-payment of premium be suspended for at least sixty (60) days from the date of the loss of those policyholders who have suffered property damage, injuries, or loss of life because of the catastrophic events. Insurers should take reasonable steps to inform affected policyholders that this extension is available.
- The sixty (60) day extension of time is not a waiver of a policyholder’s obligation to pay the premium. Where a delay in premium payment appears to result from a disruption to the mail delivery system or of the policyholder’s displacement due to the severe weather and flooding, the Commissioner requests insurers work with the policyholder and take those circumstances into account before canceling a policy.
The Commissioner further requests insurers make the following efforts to assist citizens affected by the severe weather and flooding:
- Allow exceptions to proof of loss deadlines, notice requirements, and other contract or underwriting requirements;
- Allow for policyholders to voluntarily enter payment plans;
- Allow policyholders to temporarily postpone payment due dates to continue insurance coverage;
- Suspend late payment, reinstatement, or insufficient funds fees along with any other fee, penalty, or interest charge resulting from the insured’s temporary inability to submit premium payments;
- Allow insureds to request a duplicate copy of their policy at no additional cost;
- Refrain from canceling or non-renewing policies solely because of claims resulting from the flooding; and
- Allow for one (1) early or replacement prescription refill per medication.
This request for an extension and/or exception on behalf of Tennessee policyholders is not intended to address circumstances involving fraud, material misrepresentation, or any other reason unrelated to hardships created by the severe weather and flooding.