CurrentAlabama Department of InsurancePolicy 2020-20

Extension of Grace Period (Bulletin No. 2020-20)

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Directive to all insurers and insurance premium finance companies licensed in Alabama to extend time limits for insureds impacted by Tropical Storm Zeta for acts, notices, or payments originally due on or after October 28, 2020. Applies to property & casualty, life, health, disability insurers and premium finance companies licensed in Alabama.

Policy Summary

PayerAlabama Department of Insurance

PolicyExtension of Grace Period (Bulletin No. 2020-20)

Policy CodePolicy Policy 2020-20

Change TypeOperational directive

Effective DateNov 9, 2020

Next Review Date

Key ActionExtend time limits for acts, notices, correspondence, or payments due on or after Oct 28, 2020 to Dec 28, 2020 and do not assess interest, penalties, or other charges.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

Oct 28 → Dec 28, 2020Extension period

ImmediateEffective

All insurers & finance co.Audience

New policies from Oct 29

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CurrentAlabama Department of InsurancePolicy 2020-20

Extension of Grace Period (Bulletin No. 2020-20)

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Sign up for Alabama Department of Insurance Policy 2020-20 alerts

Get alerted when Policy 2020-20 changes without checking for updates manually.

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Policy Summary

PayerAlabama Department of Insurance

PolicyExtension of Grace Period (Bulletin No. 2020-20)

Policy CodePolicy Policy 2020-20

Change TypeOperational directive

Effective DateNov 9, 2020

Next Review Date

Key ActionExtend time limits for acts, notices, correspondence, or payments due on or after Oct 28, 2020 to Dec 28, 2020 and do not assess interest, penalties, or other charges.

SourceLink

POLICY UPDATE CHANGES

No material clinical or coverage changes in this revision.

Oct 28 → Dec 28, 2020Extension period

ImmediateEffective

All insurers & finance co.Audience

New policies from Oct 29

Extension Eligibility and Operational Guidance

Extension criteria and operational guidance

Conditions and limits for the extension of time limits:

Applies to any insurance policy provision, notice, correspondence, or law that imposes a time limit on an insured who is a victim of hurricane (Tropical Storm Zeta) damage to perform any act or transmit information or funds, where the act was to have been performed on or after October 28, 2020.

The original time limit is extended to and including December 28, 2020.

No interest, penalties, or other charges shall accrue or be assessed as a result of the extensions required herein.

Interest owed pursuant to premium financing plans with premium finance companies or insurers or their affiliates may be assessed (i.e., this provision does not prohibit assessment of interest under premium finance arrangements).

Insurer receiving a claim from an insured owing premium may offset the premium due to the insurer or a premium finance company from any claim payment made under the policy.

The extension does not relieve a policyholder who has a claim from Tropical Storm Zeta from the obligation to provide information related to the claim.

Insurers should consider cancellation or non-renewal only after exhausting efforts to work with policyholders to continue coverage; policies may be cancelled or non-renewed for legally recognized reasons or policy provisions other than late or failure to pay premiums.

This bulletin shall not apply to new policies issued on or after October 29, 2020.

Administrative Codes and Dates

Neutral codesmixed

inv-03: extension_end_date

Extension end dateDecember 28, 2020

Effective from (start)Applies to acts originally due on or after October 28, 2020

ScopeExtends time limits for insureds who are victims of Tropical Storm Zeta for acts, notices, correspondence, or payments

Insurer Directives and Actions

Prior Authorization

Extend time limits to Dec 28, 2020; prohibit charges

Extend statutory or contractual time limits for any insured who is a victim of Tropical Storm Zeta for acts, notices, correspondence, or payments originally due on or after October 28, 2020 to and including December 28, 2020; do not assess interest, penalties, or other charges as a result of this extension.

Extension applies to any insurance policy provision, notice, correspondence, or law imposing a time limit on an insured who is a victim of hurricane damage.
No interest, penalties, or other charges shall accrue or be assessed as the result of the extensions required herein.

Billing Rule

Premium offset allowed; policyholder must still cooperate

Defined Terms

inv-07: victim

DefinitionVictim: an insured who suffered damage from Tropical Storm Zeta (hurricane damage) and, as a result, is unable to timely perform acts or transmit information or funds under an insurance contract

ContextIncludes insureds whose homes were destroyed or severely damaged, who experienced power outages, or who had residential mail service interrupted

ApplicabilityApplies to any insurance policy provision, notice, correspondence, or law imposing a time limit where the act was to have been performed on or after October 28, 2020

Denial Risk

Limit cancellations/non‑renewals; allow only for lawful reasons after outreach

Consider cancellation or non‑renewal only after exhausting all efforts to work with policyholders to continue coverage; cancellations or non‑renewals may proceed for legally recognized reasons or policy provisions other than late or failure to pay premiums.

Insurers should consider cancellation or non‑renewal only after exhausting efforts to work with policyholders.
A policy may be cancelled or non‑renewed for legally recognized reasons or policy provisions other than late or failure to pay premiums.