Premium finance companies may extend payment terms after Kentucky tornadoes


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Premium finance companies are allowed to extend due dates for premiums and other charges in the wake of tornadoes that ravaged the state in December, the Kentucky Insurance Commissioner said.

Finance companies should also refrain from canceling deals, as postal service has been cut off for some policyholders, Commissioner Sharon Clark said in a bulletin this week. She also said that many consumers may not have access to their premium finance contracts and finance companies should provide copies on request.

A band of powerful tornadoes struck southwest Kentucky on December 10, damaging hundreds of properties and killing 77 people. Financial firms now have until Jan. 10 to authorize an extension of payment deadlines, although state officials may allow further extensions after that, Clark said.

The commissioner said the ministry had received inquiries about the possibility for finance companies to extend payment deadlines and deadlines. The answer is “yes”, but with caveats.

“In light of the state of emergency declared by Governor Beshear in Executive Order 2021-923, insurance premium finance companies are allowed to extend periods which, when extended, will benefit their clients, ”Clark’s newsletter reads. “These extensions should be valid for reasonable periods of time that will not cause financial hardship to consumers when payments become due after the extensions expire.”

Finance companies offering the extensions should notify the department by emailing [email protected]

Photo: A resident examines damage to a home following the December 10 tornado in Dawson Springs, Ky. (Photo AP.)

Subjects
Catastrophe Natural Disasters Storm Kentucky

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