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Illinois Storm Moratorium

The Illinois Department of Insurance issued Bulletin 2017-03 regarding a moratorium effective 7/12/2017 for policies issued in specific counties impacted by recent flooding events. The Bulletin was issued because of the Governor’s disaster declaration.

Moratorium on cancellations and nonrenewals. Insurers must withdraw any cancellation or nonrenewal notice issued on or after July 12, 2017, on any in-force policy issued to an affected policyholder and/or property. In addition, insurers shall not issue any new cancellation or nonrenewal notices to affected policyholders and/or property until September 30, 2017, or a later time if deemed reasonable given an individual consumer’s circumstance.

Cancellation or nonrenewal respecting affected property. Although otherwise allowed under Illinois law, insurers are directed to refrain from canceling or nonrenewing insurance policies respecting affected property due to “increase in the risk originally accepted” or due to the geographic location of the risk.

The impacted counties are Cook, Kane, Lake and McHenry. For complete information please refer to the bulletin.