Specifically, in instances where a delay in premium payment appears to be the result of a disruption to the mail delivery system or the policyholder’s displacement due to the tornadoes, the Commissioner requests that insurers work with the policyholder and take those circumstances into account before cancelling a policy. Additionally, the Commissioner requests that insurers:
- Suspend cancellations for non-payment of premiums for a period of at least 60 days for those policyholders who have suffered property damage, injuries, or loss of life as a result of these catastrophic events. Insurers should take reasonable steps to inform affected policyholders that this extension is available. The 60-day extension of time is not a waiver of a policyholder’s obligation to pay the premium.
- 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 in order 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 duplicate copy of their policy at no additional cost;
- Refrain from canceling or non-renewing policies solely because of claim resulting from the tornadoes; and
- Allow for (1) early or replacement prescription refill.
This request for an extension and/or exception on behalf of Tennessee policyholders in not intended to address circumstances involving fraud or material misrepresentation of any other reason unrelated to hardships created by tornadoes.
Directive 20-01 applies to insureds in: Benton, Humphreys, Dickson, Cheatham, Davidson, Wilson, Smith, Putnam counties, and any other impacted insured.
Please see the full Executive Order and Directive for additional information.