On October 29, 2012, Hurricane/Superstorm Sandy surged into New York City and New Jersey, changing the face and structure of a nation. Several countries and 24 states continue to pick up the pieces, evaluate the aftermath, and rebuild. The insurance industry is no exception to the aftermath and rebuilding process. State regulators and insurers have taken action to provide policyholders that have been affected by this disaster with the support and compassion that’s deserved.
Effective January 15, 2013, an extension of the 90-day rule for uncollected premiums has been granted to insurers for policies affected by the storm (INT 13-01). All policies in effect and impacted by the storm as of October 29, 2012 may wait 150 days (90 days per existing guidance, plus the 60-day extension), not to extend beyond March 28, 2013, before nonadmitting premiums receivable from those policyholders as required by SSAP No. 6, paragraph 9. This one-time optional extension of the 90-day rule is applicable for uncollected premium balances, bills receivable for premiums, and amounts due from agents, and policyholders directly impacted by Sandy. The existing impairment analysis remains in effect for these affected policies.
Hopefully, this extension provides some relief to those impacted by this natural disaster and helps in the rebuilding process that’s only just beginning.