Applicable Rate and Form Filing Requirements Suspended To Expedite Nebraska Insurance Director’s Request For Property and Casualty Insurers to Extend On-Premises Coverage to Property Removed From Flooded Areas Until July 15, 2011

Jun 29, 2011


After a number of disaster areas related to the recent State of Nebraska flooding, Nebraska Insurance Director Bruce Ramge issued a notice to all property and casualty insurers explaining that he does not consider it reasonable to compel policyholders to comply with neglect and/or preservation of property provisions of their policy, while at the same time having their property subjected to drastically reduced levels of coverage.

Therefore, Director Ramge strongly encourages insurers to cover any property removed by policyholders on or after May 25, 2011 from their flooded premises areas, or those in danger of flooding should be covered at the same amount as if the property were located at the insured premises.  After July 15, 2011, insurers may subject the personal property to any applicable reduced coverages for being located away from the insured premises as provided for in the policy.

The July 15, 2011 time frame applicable to personal property removed does provide producers and their insurers time to extend or add coverage as may be needed by affected insureds.  

In order to expedite the provision of additional coverage for relocated personal property, a suspension of certain rate and form filing requirements is hereby provided.

For any policy form issued in Nebraska that will add or enhance coverage for personal property located away from the insured premises for dates of coverage commencing between June 1, 2011 and September 1, 2011, insurers are reminded of their ability to use forms immediately upon filing.

In order to provide affected insureds with the information necessary to make claims and to take other steps as may be provided for or required under the terms of the policies, insurers must provide duplicate copies of policies to insureds upon request without charge.

If, for reasons such as administrative efficiency, an insurer wishes to comply with this notice by providing coverage to insureds on a wider basis than the identification of specifically affected insureds, such more favorable treatment is specifically permitted by this notice. The more favorable treatment can include, but is not limited to application of this notice on a territory, zip code or statewide basis.

The provisions of this notice apply to any insurer providing coverage to an affected person in Nebraska whether the coverage is provided on an admitted or surplus lines basis.  Affected persons include coverage either upon individuals or their property located in Nebraska.

A downloadable copy of this notice is attached.