The Illinois Department of Insurance (“Department”) has recently issued a Company Bulletin 2025-17 regarding a grace period for federal employees due to the federal government shutdown. The key highlights are as follows:
The Department requests that insurers writing fire and extended coverage insurance and/or automobile insurance policies consider implementing the following protective measures for policyholders who are federal employees.
- Moratorium on cancellations. Insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after October 1, 2025, on any in-force policy due to non-payment of premium and to continue coverage in cases of unpaid premium for at least 30 days or through the duration of the federal shutdown, whichever is longer. If an affected consumer indicates to an insurer that they have not yet received their guaranteed compensation for the period of the federal shutdown, the Department requests that insurers continue coverage, even in cases of unpaid premium, for at least an additional 30 days.
- Time-period extension for repairs. If a consumer indicates insurer that repairs cannot be completed within the time required under any policy, or within the 90-day period for repairs before termination due to condition of the property, the Department requests that insurers provide consumers with an extension of at least 30 days to make such repairs, or such time as is necessary.
Please note this bulletin became effective upon issuance on October 16, 2025.
For any questions related to the above referenced bulletin in Illinois, please contact Westmont Associates!