Questions & Feedback
Illinois Moratorium on Cancellations and Nonrenewals
As of March 9, 2020, Gov. JB Pritzker has declared a state of emergency, and will continue for sixty days. Due to the COVID-19 Pandemic affecting the state, the DOI issued CB 2020-09, regarding the suspension of cancellation, nonrenewal and premium payments in certain disaster areas.
Moratorium on cancellations and nonrenewals. Insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation occurs on or after March 9, 2020, on any in-force policy. Insurers should consider postponing the issuance of any new cancellation or nonrenewal notices through April 30, 2020, or a later time if considered reasonable given an individual consumer’s circumstance. Insurers are asked to continue coverage, even in cases of unpaid premium, through at least April 30, 2020.
Postponement of cancellation and nonrenewal hearings. Please be advised that hearings and pretrial conferences scheduled on or after the date of this Company Bulletin may be continued to a date after April 30, 2020. The Hearing Officer will provide notice of the new hearing date to the parties.
Other insurance-related time-period extensions. Insurers are requested to consider granting an extension of any 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 proof of loss, reporting of information, or submission of bills. The Department asks that such extension be for at least 30 days from the last date allowed or required under the contract or allowed or required by the insurer, or longer if considered reasonable given an individual consumer’s circumstance.
Time-period extension for repairs. If a consumer indicates to an insured that repairs cannot be completed within the time required under any policy, or within the 90-day period for repairs before termination due to condition of the property (see 215 ILCS 5/143.27), the Department requests that insurers provide consumers with an extension of at least 30 days to make such repairs, or such a time as is necessary, given the concerns raised with COVID-19 and issues arising therefrom.
Notice Requirements. The Department does not intend to construe extension of coverage provided pursuant to the guidance of this Company Bulletin as converting a policy into one subject to the 60-day notice requirement set forth in Section 143.21.1 of the code (see 215 ILCS 5/143.21.1).
Communications to Insured. Insurers should continue to advise Illinois consumers that they may either call the Department’s toll-free complaint hotline at 1-866-445-5364 or file a complaint online at www.mc.insurance.illinois.gov/messagecenter.nsf with their insurance related issues.