Questions & Feedback
Illinois Moratorium on Cancellations and Nonrenewals
As of July 17, 2017, Gov. Bruce Rauner has declared Cook, Kane, Lake and McHenry counties state disaster areas following severe flooding. In response, the DOI issued CB 2017-03, regarding the suspension of cancellation, nonrenewal and premium payments in certain disaster areas.
Moratorium on cancellations and nonrenewals. For any cancellation or nonrenewal notice issued on or after July 12, 2017, on any in-force policy issued to an affected policyholder or respecting affected property, insurers must withdraw the cancellation or nonrenewal and reinstate the policy with no lapse in coverage. In addition, insurers may not issue any cancellation or nonrenewal notices to affected policyholders or for affected property until Sept. 30, 2017, or a later time if considered reasonable given an individual consumer’s circumstance.
Other insurance-related time-period extensions. Insurers must grant affected policyholders an extension of any and all policy provisions or other requirements that impose a time limit for an insured or claimant to perform any act, including the submission of a claim or a proof of loss, reporting of information, submission of bills, or payment of funds. Such extension shall be for a minimum of 60 days from the last date allowed or required under the terms of the contract or allowed or required by the insurer, or longer if deemed reasonable given an individual consumer’s circumstance.
Time-period extension for repairs. In case 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 condition of the property (see 215 ILCS 5/143.27), insurers must provide consumers with an extension of not less than 60 days to make such repairs.
Cancellation or nonrenewal respecting affected property. Although otherwise allowed under Illinois law, insurers are directed to refrain from cancelling or nonrenewing insurance policies respecting affected property due to “increase in the risk original accepted” (see 215 ILCS 5/413.21 and 143.21.1) or due to the geographic location of the risk (see 215 ILCS 5/155.22).
Other exceptions to policy or contract requirements or rating or underwriting rules. Insurer must consider exceptions to policy or contract requirements, or to other rating or underwriting rules, which such contractual requirements or rules are not met as a result of this disaster. Exceptions include instances where insureds are unable to obtain non-emergency medical services from a network provider due to displacement.
Availability of the Illinois DOI. Insurers must advise Illinois consumers of the availability of the DOI for filing a complaint regarding any disaster-related dispute or issue. Consumers must be advised that they may call the DOI’s toll-free complaint hotline at (866) 445-5364, or file a complaint online at https://mc.insurance.illinois.gov/messagecenter.nsf.