An industry trade group announced yesterday that property-casualty insurers have implemented a 60-day moratorium on cancellation and nonrenewal of insurance policies for people living in flood-affected Midwest counties.

Property Casualty Insurers Association of America (PCI) said the moratorium was instituted in cooperation with the Illinois, Indiana and Iowa insurance departments.

"We understand that residents are trying to get their lives back in order and this is one of the many things the insurance industry is doing to help," said Greg LaCost, PCI assistant vice president and regional manager.

Mr. LaCost said in a statement that insurers are focusing all efforts on helping "those affected by this disaster begin the process of recovery. In addition to sending out an army of claims adjusters, the industry is reaching out to policyholders to open up the communications process and get payments into the hands of customers."

He said insurers are working closely with Commissioners Michael McRaith of Illinois, Jim Atterholt of Indiana and Susan Voss of Iowa "to ensure we are all focused on taking the appropriate steps to protect the public and serve as a catalyst for rebuilding."

Most of the insurance losses involved are written through the National Flood Insurance Program. Private home and business insurance generally has a provision excluding flood claims. A flood program official said yesterday that few in the flood-ravaged area have the coverage.

A report today from Guy Carpenter reinsurance brokerage's Instrat unit citing data from the Federal Emergency Management Agency said more than 11 million people in nine Midwestern states have been affected by the recent flooding and extreme weather.

Rainfall was reported to have triggered flash flooding in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska and Wisconsin and caused river levels in these states to reach record or near-record levels.

The Mississippi River, which passes through 10 states from its source in Minnesota to its mouth in the Gulf of Mexico and is engorged by water from the Iowa and Cedar Rivers, has yet to hit its high point, and more flooding is predicted through this week.

National Weather Service said yesterday that 41 river gauges were at major flood stage, 47 gauges at moderate flooding and 55 gauges at minor flood stage in the affected area.

At least 16 people have been killed and the flooding has forced at least 38,000 people to evacuate their homes. Crop damage has also been considerable, with Iowa alone reporting $1 billion in damage.

In Indiana as many as 800 buildings were said to have been destroyed in Johnson County, around 1,700 homes damaged in Morgan County, 600 homes damaged in Owen County, and 1,100 homes damaged in Vermillion County.

The preliminary estimate of damage to the public infrastructure in four impacted Minnesota counties was put at $8.3 million.

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Insurers Set Moratorium On Flood Area Policy Cancellations

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