KY| The Kentucky Department of Insurance Bulletin 2025-04 urges all licensed Kentucky property and casualty insurers to voluntarily provide temporary relief measures so federal employee policyholders affected by the October 1, 2025 federal government shutdown do not lose coverage or face additional hardship, primarily by deferring cancellations for nonpayment, extending time frames for payments and repairs, and notifying the Department if they choose to implement these accommodations.
Main Points:
- Insurers are requested to postpone or withdraw cancellation/termination notices for nonpayment on in-force policies for affected federal employees and to continue coverage for at least 30 days, or 30 days after the shutdown ends, with an additional 30 days if back pay has not yet been received.
- Insurers may extend time periods for premium and other payments (such as deductibles and copayments) to reasonable dates after the shutdown, and may recoup unpaid premiums from claims incurred during the forbearance period.
- Insurers are asked to grant at least a 30‑day extension, or longer as needed, when affected consumers cannot complete covered repairs within policy time limits, and to notify the Department if they will be offering these extensions, using the contact information provided in the bulletin.