In line with a long-standing disaster practice, CUNA Mutual Group is giving a payment break to Tennessee policy holders who are victims of the flooding nearly three weeks ago.
The insurer said it has offered a 90-day moratorium for policy holders on company-initiated cancellations and non-renewals resulting in unpaid premiums because of hardships.
"CUNA Mutual will stand by its credit union customers and help them through this disaster," said Jeff Post, president/CEO in commenting on the directive applying to policyholders throughout the state. The worst of the record-setting floods was in metro Nashville as any number of CU employees and members suffered damages to homes and businesses.
CUNA Mutual said the moratorium remains in place "for a minimum of 90 days and applies to all policyholders underwritten by CUNA Mutual in Tennessee" and covers those not just in areas declared federal disaster areas.
"All penalties and fees for the late payment of premiums are waived during the moratorium" and in addition, the grace period is imposed on other provisions with "specific time limits that would otherwise expire," said the insurer.
A CUNA Mutual spokesman said the insurer "has issued moratoriums similar to the one in Tennessee during times of natural disasters, sometimes twice a year, depending on the frequency of flooding or other natural disasters." In 2008, waivers were issued for flooding in five upper Midwest states and as a result of Hurricane Dolly in Texas.