OIR Issues Emergency Order on Cancellations and Non-Renewals Related to Hurricane Michael

The OIR has issued an Emergency Order on cancellations and non-renewals related to Hurricane Michael. The Order activates Rule 69O-142.015(2), F.A.C. The rule applies to policies written on risks located in these counties: Bay, Calhoun, Franklin, Gadsden, Gulf, Hamilton, Holmes, Jackson, Jefferson, Leon, Liberty, Madison, Suwannee, Taylor, Wakulla, and Washington. (Referred to as “Included Counties.”) Unlike the emergency order issued after Hurricane Irma, which applied to the entire state, the Michael order is limited to the counties listed.

The rule applies to all lines of business, not just residential

The rule applies to admitted and non-admitted insurers.

Between October 7, 2018 and January 7, 2019, no insurer shall cancel or non-renew a policy or contract of insurance or issue a notice of cancellation or non-renewal, covering a person, property or risk in the Included Counties, except at the written request or written concurrence of the policyholder. This applies to all lines of insurance, not just property. It would also prohibit a cancellation or non-renewal due to non-payment of premium.

All notices of cancellation issued or mailed ten (10) calendar days preceding October 7, 2018, affecting a policyholder in the Included Counties, shall be withdrawn and reissued to insureds on or after January 7, 2019.

A cancellation or non-renewal may occur prior to January 7, 2019, at the written request or written concurrence of the policyholder.

A cancellation or non-renewal of coverage effective between October 7, 2018 and January 7, 2019 is not invalid, but the insurer shall extend coverage to and including January 7, 2019, or a later date specified by the insurer. The premium shall be a pro rata portion of the annual premium. The insurer would not have to reissue the policy; they can simply extend coverage until January 7, 2019.

The rule does not apply to new policies effective on or after October 7, 2018.

Various conditions apply to premium financed policies. FAIA is working with the finance companies to get clarification on how the Emergency Order affects policies that have been financed. Stay tuned.

An insurer may not cancel or non-renew a personal residential or commercial residential property insurance policy covering property damaged as a result of Hurricane Michael located in the Included Counties for a period of 90 days after the dwelling has been repaired, except as provided in Section 627.4133(2)(d)2., Florida Statutes. This would include homes, apartments, homeowners associations, and residential condominium associations. This part of the rule would not prohibit the cancellation or non-renewal of a commercial non-residential policy covering a structure such as an office building.

Various provisions relating to “file and use” and “use and file” rates are addressed.