State of Emergency Declared in Ohio; Insurers Asked to Allow Deferred Payments

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Ohio Insurance Director Jillian Froment has issued a bulletin to all insurance companies and other entities transacting the business of insurance in the state to allow leeway to insurance consumers in counties covered by a state of emergency declaration resulting from recent severe weather and tornadoes.

The bulletin requests that companies allow their insureds to defer premium payments coming due and extend any and all provisions imposing time constraints within which insureds must take certain action.

Gov. Mike DeWine on May 28, 2019, declared a state of emergency for Greene, Mercer and Montgomery counties, and any other counties that subsequently declare an emergency due to dangerous and damaging conditions resulting from the severe weather event and tornadoes that began May 27, 2019 and lasted through May 28, 2019.

This request is applicable to insureds or claimants residing in, or property insured in, the areas in the declared state of emergency. All insurance companies and other entities are to give their insureds affected by this disaster the option of deferring premium payments coming due, interest free, for up to 60 calendar days from the original premium due date.

Further, as to any policy provision that imposes a time limit on an insured or claimant to perform any act, including the transmittal of information or funds, with respect to a contract for insurance, companies are to extend such time limits by at least 60 calendar days from the last day allowed under the terms of the contract, or any longer period that may be deemed reasonable under the specific circumstances related to that insured or claimant.

This 60 calendar day period is not to extend past July 28, 2019, according to the bulletin.

Any insurer unable or unwilling to comply with this request must inform the Ohio Department of Insurance of the reasons for its inability or unwillingness to comply within five working days from the effective date of the bulletin.

Source: Ohio Department of Insurance