TO: All insurers

FROM: Kathleen Sebelius

Commissioner of Insurance

SUBJECT: Nonpayment of premium due to the tornados and storms of May 3, 1999

DATE: May 18, 1999

All insurers authorized to do business in Kansas must take immediate steps to recognize the unusual situation surrounding the tornado survivors of our state. We have numerous accounts of citizens whose homes and businesses suffered major damage or were totally destroyed by the tornado and storms on May 3, 1999. Consequently, I am requesting that insurance coverage not be terminated for nonpayment of premium by any company with respect to any tornado survivor until the survivor of the tornado has been given a reasonable amount of time to establish permanent residency and is able to receive insurance company correspondence by mail.

If coverage has been terminated and it is subsequently discovered that the necessary premium was not paid as a direct result of circumstances attributable to the tornados and storms on May 3, 1999, such policies should be reinstated with no lapse in coverage or other penalty. The reinstatement should remain if effect until such time as the insured/policy owner has had a reasonable opportunity to pay the necessary premium.

The situation demands compassion and understanding in dealing with this problem. Insurers and agents are in as good a position as I to determine when the crisis has eased and some sense of normalcy has returned to the areas and individuals affected. If you need assistance in identifying the Kansas communities affected, please feel free to contact the Consumer Assistance Division of this office for help.