Alaska Issues Bulletin Prohibiting Cancellation for Nonpayment
In response to the public health disaster emergency declaration for the novel coronavirus disease (COVID-19), the Alaska Division of Insurance issued a bulletin (Bulletin B 20-08) prohibiting insurers from cancelling insurance policies for nonpayment of premiums. To clarify, this directive does not remove the insureds obligation to pay premiums; instead, it limits policy cancellations for late payment.
The order was published Wednesday, March 18, 2020 and will remain in effect until June 1, 2020.
If Proctor is providing lender placed borrower notification services for your organization, Proctor will temporarily suspend lender placement notification activity in Alaska. Lender placement notifications will restart after the moratorium is lifted. If your organization sends the lender placement notifications, PFI encourages clients to review their internal lender placement letter procedures to ensure compliance with the moratorium.
Proctor will continue to monitor this topic and provide updates as they develop. Please contact your client representative if you have any questions.