PB12-2017: Illinois Department of Insurance Company Bulletin 2017-03​

Due to significant flooding, Governor Bruce Rauner has declared the counties of Cook, Kane, Lake, and McHenry as state disaster areas. The Illinois Department of Insurance has issued Company Bulletin 2017-03 (copy attached) providing guidelines to be implemented to govern the treatment of all policyholders affected by this disaster who reside in or have property located in or around the counties that have been declared disaster areas.

Effective immediately, the following guidelines will be implemented by First Financial Insurance Company and The Burlington Insurance Company ("IFG"):

• IFG will 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, IFG will 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.

• IFG will grant to affected policyholders an extension of any and all policy provisions or other requirements that impose a time limit for an insured or claimant to perform any act, including the submission of a claim or proof of loss, reporting of information, submission of bills, or payment of funds. Such extension will be for a minimum of 60 days from the last date allowed or required under the terms of the contract or longer if deemed reasonable given an individual consumer’s circumstance.

• In the event repairs on affected property cannot be completed within the time period required under any policy, or within the 90-day time period for repairs prior to termination due to condition of the property, IFG will provide consumers with an extension of not less than 60 days to make such repairs.

• Although otherwise allowed under Illinois law, IFG will 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.

• IFG will consider exceptions to policy or contract requirements, or to other rating or underwriting rules not otherwise listed herein, when such contractual requirements or rating or underwriting rules are not met as a result of this disaster. Exceptions to policy or contract requirements or rating or underwriting rules include instances where an insured is displaced from his or her home and is unable to obtain non-emergency medical services from a network provider.