TDCI: Southeast Tennessee Tornado Victims’ Insurance Policies Cannot Be Canceled For 60 Days

NASHVILLE – The Tennessee Department of Commerce and Insurance (TDCI) announces that insurance policyholders in eight Southeast Tennessee counties affected by the deadly tornadoes and severe weather on April 12 and 13, 2020 cannot have their policies canceled for non-payment for 60 days.

“My team and I extend our sincerest condolences to the families and loved ones of Tennesseans who lost their lives or homes during the tragic Easter storms,” said TDCI Commissioner Hodgen Mainda. “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. 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. If consumers have questions or concerns about filing a claim or about an insurance policy, I urge them to contact our team at (615) 741-2218 or 1-800-342-4029.”

TDCI has notified all licensed Tennessee insurance carriers that cancellations/non-renewals for non-payment of insurance premiums on all lines (health, home, and auto) will be suspended up to 60 days from the date of the loss. This affects policyholders in Bradley, Campbell, Hamilton, Marion, Monroe, Polk, Scott and Washington counties. A copy of TDCI’s bulletin can be found here.

Additionally, the eight affected counties 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.

“Consumers who were impacted by the Easter tornadoes should not have to worry about the cancellation of their insurance policy,” said TDCI Assistant Commissioner Rachel Jrade-Rice. “However, if your insurance carrier cancels your policy for non-payment and will not reinstate you at no cost and at the same premium, I urge residents to contact our team immediately and file a complaint. We are here to help Tennesseans recover and rebuild.”

If consumers in an affected county discover a policy cancellation or if they have a question about their policies, they are encouraged to contact the department or file a complaint online.

Mediation efforts by TDCI have resulted in monies being returned to Tennesseans every year. Last year, the TDCI team returned over $4.27 million to Tennessee consumers through mediation - a process where TDCI insurance investigators intercede between insurance companies and policyholders to get wrongfully denied claims overturned and paid for policyholders.

The 60-day extension is not a waiver of a policyholder’s obligation to pay a premium. 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, TDCI has requested insurers work with the policyholder and take those circumstances into account before policy cancellation.

As part of rebuilding and recovery efforts, TDCI reminds consumers of the following:

• 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 1/3 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/.
• To learn more tips about selecting a contractor and avoiding scammers, visit our website here.

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