Tennessee’s Department of Commerce and Insurance has given a payment extension to the state’s insurance policyholders who were affected by the devastating storms and historic floods in April and May in an attempt to provide disaster relief.
Julie Mix MicPeak, the Department of Commerce and Insurance commissioner, sent a memo to the state’s property and casualty insurers asking them to allow leeway on premium payments for clients affected by the recent weather mayhem. Because some policyholders have had to straighten out financial losses, the state has given affected policyholders 60 days from the date of their loss(es) to pay their insurance premiums.
In the memo sent on May 6, MicPeak requested that insurance providers suspend the non-renewal fees and cancellations of policies clients might have incurred as a result of missing an insurance premium payment immediately following weather devastation. Property and casualty insurers were to inform their clients of the extension.
Because surety bonds fall under property and casualty insurance, this extension also applies to individuals who need to pay for their Tennessee surety bond renewals. Those who have been affected by catastrophic weather events can get an extension on their surety bond renewal premium due date, but they must contact their surety bond producer and request an extension because the extension is not automatic.
MicPeak clarified the extension is in no way “a waiver of a policyholder’s obligation to pay premium,” nor is it a way for policyholders to make fraudulent claims to get extensions on unrelated cancellations or non-renewals.