For Illinois policyholders affected by the July flooding

Illinois has issued insurance Bulletin 2017-03 on July 17, 2017, titled Suspension of Cancellation, Non-renewal and Premium Payments, requesting insurance companies allow coverage to remain in effect for an Illinois insured residing in a county where a disaster has been declared due to the potential disruption to mail delivery and the displacement of insurance consumers from their residences, businesses, or other properties due to flooding.

The attached Bulletin 2017-03 contains pertinent details as follows:

  1. The impacted Illinois Counties are:  Cook, Kane, Lake, and McHenry.
  2. The bulletin applies to all lines of business, both personal and commercial.
  3. The moratorium applies to cancellations and nonrenewals issued on or after July 12, 2017, and remains in effect until September 30, 2017, or a later time if deemed reasonable given an individual consumer’s circumstances.  (Note: This includes withdrawing any cancellation or nonrenewal notices issued on/after July 12, 2017.)
      a. From the last date allowed or required under the terms of the contract for any and all policy provisions or requirements which impose a time limit for the performance any act by an insured or claimant, including the submission of a claim, proof of loss, reporting of information, submission of bills or payment of funds.
      b. 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 property condition.
  4. The DOI also requests that insurers refrain from canceling or nonrenewing insurance policies respecting affected property due to “increase in the risk originally accepted” or due to geographic location of the risk.

Also, as is the normal procedure, insurers must publish on their websites all actions taken to implement the requirements of the bulletin.