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.
No material clinical or coverage changes in this revision.
Extension Eligibility and Operational Guidance
Extension criteria and operational guidance
Conditions and limits for the extension of time limits:
Administrative Codes and Dates
Insurer Directives and Actions
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.
Premium offset allowed; policyholder must still cooperate
Insurers may offset premium owed by an insured against any claim payment made under the policy; however, the extension does not relieve a policyholder from their obligations to provide information related to a claim.
- "Any insurer receiving a claim from an insured owing premium may offset the premium due... from any claim payment made under the policy."
- Extension of time does not relieve a policyholder from compliance with obligations to provide information related to a claim.
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.
Defined Terms
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