Illinois Department of Insurance urges insurers to assist policyholders during government shutdown

Ann Gillespie, Director of the Illinois Department of Insurance | https://idoi.illinois.gov/

The Illinois Department of Insurance (IDOI) has urged insurance companies to offer relief to policyholders affected by the ongoing federal government shutdown. The department’s request comes as more than 153,000 Illinois residents employed by the federal government face financial challenges due to a lapse in federal appropriations that began on October 1.

IDOI Director Ann Gillespie stated, “The lapse in federal appropriations since October 1, impacts more than 153,000 Illinoisans who are employees of the federal government. These consumers should not have the added burden of losing insurance coverage because they are not being paid and cannot pay their auto or homeowners insurance premiums.”

The department is asking insurers to implement several protective measures for policyholders who are federal employees. First, IDOI recommends a moratorium on cancellations. Insurers are encouraged to postpone or withdraw any previous notice of cancellation or nonrenewal for policies where the cancellation would occur on or after October 1 due to non-payment of premium. The department asks that coverage be continued for at least 30 days or through the duration of the shutdown, whichever is longer. If a consumer has not received their guaranteed compensation after the shutdown ends, IDOI requests that insurers continue coverage for an additional 30 days even if premiums remain unpaid.

Additionally, IDOI requests that insurers extend deadlines for repairs if policyholders indicate that repairs cannot be completed within the time required under their policies or within the standard 90-day period before termination due to property condition. The department asks that insurers provide an extension of at least 30 days or as much time as necessary.

Federal employees in Illinois affected by loss of compensation and facing potential policy cancellations can contact the department’s Consumer Assistance Hotline at 866-445-5364 or email DOI.Complaints@illinois.gov for support.