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ALDOI requests insurers offer flexibility to deployed military members

Contact: Jennifer Bowen

(334) 269-3550

5/7/2020

In an effort to provide help and assistance to the men and women serving our nation in America’s military, the Alabama Department of Insurance has issued a bulletin requesting insurance companies offer flexibility to deployed members of the military returning from service.

The bulletin requests insurers not deny reinstatement, refuse to write coverage, raise premium or apply a surcharge for members returning from active duty who may have discontinued or have a gap in their automobile coverage due to their deployment.

While underwriting and rating standards often consider whether the applicant has had continuous insurance coverage, the department believes continuous coverage standards are not appropriate for deployed members of the military and should be waived.

If the policyholder was in good standing at the time of deployment, the department request companies reinstate a lapsed policy as if the coverage was continuous.

The bulletin requests insurers refrain from non-renewing policies of members in deployment who keep their premium payments current.

“These servicemen and women who have served our country, often at great personal risk, should not be penalized for their service,” the bulletin reads.

To read the full bulletin, click here