Regulators in Illinois, Indiana and Iowa want insurers to be patient with customers in areas affected by the recent catastrophic floods.
Officials are asking insurers to give customers at least 60 extra days to make payments, file claims and meet other deadlines, and to relax rules, such as health plan network provider rules, to help evacuees.
Indiana insurers can cancel policies for reasons other than missed deadlines, but companies should recognize “that persons in the heavily impacted areas may be unable to receive a notice of cancellation or non-renewal due to evacuation or delayed postal service in that area,” Indiana Insurance Commissioner James Atterholt writes.
Indiana will be giving producers and insurers affected by the flooding 60 extra days to meet filing and other deadlines.
Offering grace periods to help customers get through emergencies “is good business,” says Iowa Commissioner Susan Voss. “More than that, it’s the right thing to do.”
Carriers that had announced relief plans for flooding victims at press time included New York Life Insurance Company, New York; Aetna Inc., Hartford; CIGNA Corp., Philadelphia; and TriWest Healthcare Alliance, Phoenix.
Insurers in the flooded region have been active in disaster relief efforts.
Insurers such as AEGON USA, Cedar Rapids, Iowa, let employees take paid time off to help with sandbagging. AEGON USA President Pat Baird was a sandbagger.
Wellmark Blue Cross and Blue Shield, Des Moines, Iowa, had to move its Cedar Rapids sales and customer service operations into a hotel after several feet of water flowed into its offices in that city.