Emergency Orders Regarding Cancellation & Non-Renewal

The Florida Office of Insurance Regulation has issued two emergency orders pertaining to the ability of an insurer to cancel or non-renew a policy after hurricane Wilma hit Florida. The orders may be viewed at the links below, and a summary of each follows.

Emergency Order 83768-05-ER, October 25, 2005

http://www.floir.com/pdf/Emergency%20Order%2010-25-05.pdf

• Applies to admitted and non-admitted carriers.


• Applies only to residential including dwellings, condominiums, and apartment houses.


• Only risks in the 20 Florida counties specified in the order are affected.


• For the order to apply, the structure must have sustained damage from Wilma.


• If the order applies to the particular risk, no insurer may cancel or non-renew a risk until 90 days after repairs have been completed. A few exceptions such as non-pay exist.


• A summary may be viewed here: http://www.faia.com/web/2005/11/hurricanes_cancellations_and_nonrenewals.aspx

Emergency Order 83836-05-ER, October 27, 2005

http://www.floir.com/pdf/EO_83836-EO.pdf

• Applies to admitted and non-admitted carriers.


• Applies to almost all lines of insurance regulated by the Florida Department of Financial Services, including residential, auto, workers compensation, CGL, life, and health to name a few.


• The order applies regardless of damage from Wilma.


• The order applies to risks located in any of the 20 named counties.


• No insurer may cancel or non-renew a policy between 10/19/05 and 11/19/05 unless requested by the insured.


• No insurer may issue a notice of cancellation or non-renewal between 10/19/05 and 11/19/05. If one was issued it must be withdrawn and reissued after 11/19/05.


• Any notice mailed between 10/12/05 and 10/19/05 must be withdrawn and reissued after 11/19/05 and must provide the required statutory number of days notice.


• A notice issued prior to 10/12/05 with an effective date of cancellation after 11/19/05 is valid.


• If a notice was issued before 10/12/05 with an effective date between 10/19/05 and 11/19/05 coverage must be extended until 11/19/05, but no new notice of cancellation or non-renewal is required.


• Premium finance contracts are covered by the order.


• After 11/19/05 the insurer may reissue the notice of cancellation or non-renewal, unless the risk falls under the first order, 83768-05-ER.


• The order does not apply to new policies issued on and after 10/24/05.


• An insurer who receives a claim from an insured owing premium may offset the premium due from any claim payment due under the policy.


• A cancellation or non-renewal may occur prior to 11/19/05 if requested in writing by the insured.

10/31/05