In response to Hurricane Sally, the Governor of Alabama declared a state of emergency on September 14, 2020. Subsequently, the Department of Insurance issued Bulletin 2020-18, which suspends certain provisions of the Alabama Insurance Code, including those related to cancellation, nonrenewal, premium payment, and claim filings. The order is directed to all property and casualty, life, health, and disability insurers, and all insurance premium finance companies licensed in the state. In cases where the insured suffered hurricane damage, time limits to perform any required act, in connection with an insurance contact, which act was to have been performed on or after September 15, 2020, have been extended through November 15, 2020. No interest, penalties, or other charges may accrue or be assessed as a result of the extensions required by the order.
The relief granted through the bulletin is intended to provide relief for insureds in affected areas whose lives have been disrupted by displacement from homes, closing of businesses, loss of electricity, and interruption in mail and communication services. This directive does not remove the insured’s obligation to pay premiums or cooperate in the claim adjustment process; instead, it limits policy cancellations for late payment. Please note, if Proctor is providing borrower notification services for your institution, no changes will occur to the notification cycle or lender placement. To review the bulletin in its entirety, follow the link provided here.