Office of Insurance Regulation Issues Emergency Order following Hurricane Ian

On September 28, 2022, the Office of Insurance Regulation (OIR) issued an emergency order regarding the suspension of rules due to the state of emergency created by Hurricane Ian. The order is directed at entities regulated by the OIR, including life and health insurers.

The order extends the time limit for an insured to perform any required act or transmit information or funds regarding certain health or life insurance contracts, which required action on or after September 28, 2022, to November 28, 2022. The order also prohibits the accrual or assessment of interest, penalties, or other charges resulting from the extensions. The extensions do not apply to new policies effective on or after September 28, 2022.

The order also prohibits insurers from canceling or failing to renew certain health or life insurance policies or contracts except at the written request or concurrence of the policyholder during the time period between September 28, 2022, and November 28, 2022. Furthermore, insurers must withdraw all notices of cancellation that affect a state resident and are issued or mailed within ten calendar days preceding September 28, 2022, and reissue these notices on or after November 28, 2022. In such situations, the order requires the insurer to extend the coverage through November 28, 2022 (or a later date specified by the insurer). According to the order, the premium for such an extended term of coverage shall be the appropriate pro rata portion of the premium for the entire term of the policy. This rule does not apply to new policies effective on or after September 28, 2022.

The order is directed at insurers, but employers may want to be aware of the temporary relief measures and should contact their insurers for further information.

OIR Emergency Order Following Hurricane Ian »