DC Prohibits Cancellations and Nonrenewals of Policies for Nonpayment
The District of Columbia Acting Commissioner issued an order prohibiting all property and casualty insurers authorized to conduct business in the District from canceling and nonrenewing insurance policies for nonpayment of premiums.
Additionally, insurers are instructed to provide reasonable accommodations, including waiving late fees for unpaid premiums and providing insureds the option to repay unpaid premiums in installments over a period of not less than twelve (12) months beginning one month after the Public Health Emergency ends.
This directive does not remove the insureds obligation to pay premiums; instead, it limits policy cancellations for late payment.
The order is effective as of the date of the order and will remain in effect until the state of emergency is lifted.
If Proctor is providing letter services for your organization, Proctor will temporarily suspend hazard insurance lender placement notification activity in the District. Lender placement notifications for hazard insurance will restart after the moratorium is lifted. Proctor encourages clients to review their internal lender placement letter procedures to ensure compliance with the moratorium.
For a complete list of all the reasonable accommodations included in the notice, click here.
Proctor will continue to monitor this topic and provide updates as they develop. Please contact your client representative if you have any questions.