- Excess Lines Association of New York Issues Bulletin 2013-13 on Expiration of SuperStorm Sandy Moratorium on Cancellations and Nonrenewals and Issuance of Circular Letter No. 1 (2013)
- March 5, 2013
- Law Firm: Colodny Fass Talenfeld Karlinsky Abate Webb P.A. - Fort Lauderdale Office
In Bulletin 2013-13 issued today, March 4, 2013, the Excess Lines Association of New York ("ELANY") advised that the New York Department of Financial Services ("DFS") moratorium on cancellations and nonrenewals for ZIP codes in certain designated counties affected by Superstorm Sandy expired as of midnight on Wednesday, February 27, 2013. Therefore, beginning Thursday, February 28, 2013, insurers are no longer bound by this moratorium.
The DFS has also issued Circular Letter No. 1 (2013) dated February 27, 2013 (copy attached). The purpose of this document is to provide guidance to insurers on how to handle the collection of premiums now due or past due as an alternative to cancellation for nonpayment of premium. However, it does not address cancellations or non-renewals related to any basis other than for nonpayment of premium.
Since the Circular Letter was only directed to authorized (licensed) insurers it does not appear to be applicable to the excess line market.
According to ELANY, insurers are free to follow the guidelines outlined in the Circular Letter, which states in part that " . . . the Superintendent expects insurers to work with impacted policyholders who are paying premiums that would have come due during the Moratorium period by providing sufficient notice of premium due and allowing repayment plans or providing further extensions in paying amounts due in full as needed."