Tornado victims hurt by the Easter storms that swept into Chattanooga April 12-13 cannot have their policies canceled for non-payment for 60 days, state insurance regulators said Monday.
The Tennessee Department of Commerce and Insurance said policyholders for health, home or auto insurance plans who live in eight Southeast Tennessee counties affected by the deadly tornadoes and severe weather on Easter night cannot have their policies canceled until June.
The 60-day extension is not a waiver of a policyholder's obligation to pay a premium, however. Where a delay in a premium payment appears to be the result of a disruption to the mail delivery system or to the policyholder's displacement due to the tornadoes, state regulators have told insurers to work with the policyholder and take those circumstances into account before policy cancellation.
If any insurance carrier cancels a policy for a storm victim for non-payment and will not reinstate the policy at no cost and at the same premium, residents may file a complaint with the state.
This affects policyholders in Bradley, Campbell, Hamilton, Marion, Monroe, Polk, Scott and Washington counties. The eight affected counties also will receive federal aid through an expedited Major Disaster Declaration as a result of the deadly tornadoes and severe weather.
Consumer information about Individual Assistance and Public Assistance is available at the Tennessee Emergency Management Agency's website.
"In the aftermath of the severe weather, I have seen firsthand the resilience of Southeast Tennessee residents as they have worked together to rebuild and move forward," Tennessee Insurance Commissioner Hodgen Mainda said. "Their hard work and the spirit of community has moved me and made me prouder than ever of my friends in the Chattanooga area community."
Consumers may file a complaint by calling 615) 741-2218 or 1-800-342-4029.
As part of rebuilding and recovery efforts, the state insurance department urges consumers to:
- Never sign over your insurance check for rebuilding, do not pay with cash, or pay the total charges before the work is complete. State home improvement law prohibits contractors from asking for a down payment of more than a third of the total contract.
- A contractor's license is required prior to contracting (bidding or negotiating a price) whenever the total cost of the project is $25,000 or more. If you have questions about a contractor, contact the Tennessee Board for Licensing Contractors.
- Only conduct business with licensed insurance agents and contractors. To verify an insurance license, visit the National Association of Insurance Commissioners. To check a license of a professional regulated by the Department, go to http://verify.tn.gov/.
