The Illinois DOI recommended insurers implement the following “protective measures” for policyholders who are federal employees:

Implement a moratorium on cancellations: “Insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after October 1, 2025, on any in-force policy due to non-payment of premium. Insurers are asked to continue coverage in cases of unpaid premium for at least 30 days or through the duration of the federal shutdown, whichever is longer. If following the end of the federal shutdown an affected consumer indicates to an insurer that they have not yet received their guaranteed compensation for the period of the federal shutdown, the Department requests that insurers continue coverage, even in cases of unpaid premium, for at least an additional 30 days.”
Extend allotted repair time periods: “If a consumer indicates to an insurer that repairs cannot be completed within the time required under any policy, or within the 90-day period for repairs before termination due to condition of the property (215 ILCS 5/143.27), the Department requests that insurers provide consumers with an extension of at least 30 days to make such repairs, or such time as is necessary.”

Maryland has also sounded the call for mercy for federal employee policyholders. On October 20, the Maryland Insurance Administration issued a bulletin calling for all insurance carriers that do business in the state to make reasonable accommodations to prevent those impacted by the shutdown from losing coverage. The Insurance Administration recommends insurers consider deferring premium payments, extending grace periods, accepting partial payments and waving late fees.

Special Reports /

States encourage insurance mercy for federal workers

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