Emergency rules protect insured from cancellation

DeSantis signed an emergency order to protect the state’s policyholders for next two months.


  • By Louis Llovio
  • | 9:04 a.m. September 30, 2022
  • | 5 Free Articles Remaining!
An oak tree blocks Grove Street in Sarasota in the wake of Hurricane Ian. The woman who lives there said she didn't even hear it fall. (Photo by Kat Hughes)
An oak tree blocks Grove Street in Sarasota in the wake of Hurricane Ian. The woman who lives there said she didn't even hear it fall. (Photo by Kat Hughes)
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Gov. Ron DeSantis has ordered insurance companies in the state to delay taking action on property and casualty policies until late November.

The emergency order, announced by the Office of Insurance Regulation late Sept. 28, prohibits companies writing policies in the state from canceling or not renewing insurance policies covering property in Florida unless the policyholder requests it for the next two months.

Insurance companies are also prohibited from sending cancellation or non-renewal notices to customers as well as nullifying any decision announcing coverage would be lost sent 10 days before Sept. 28.

The order also extends grace periods and allows policyholders to catch up on payments without being charged a late fee.

The rule is in effect until Nov. 28. Policies written on or after Sept. 28 are not protected.  

The protections also extend to life insurance policies and health insurance policies except those “subject to regulation by the Patient Protection and Affordable Care Act.”

The emergency order says the move was made “to protect the public health, safety and welfare of all Florida policyholders.”

Florida’s crippled property insurance market is about to be severely tested in the wake of Hurricane Ian. The state’s insurance market has been struggling for years and fears were that the system was one major storm away from collapse.

Given the size and strength of Ian, it is likely that we may soon know if those fears were warranted.

This story is from the Business Observer that covers Polk, Pasco, Hillsborough, Pinellas, Manatee, Sarasota, Charlotte, Lee and Collier counties,

 

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