Moratorium On All New And Renewal Insurance Policies
Question:
Has a moratorium been imposed on the issuance of new and renewal insurance business of ROA?
Answer:
Yes, the Deputy Receiver issued his Second Directive Imposing Moratorium on New Business (the "Second Directive"), effective January 29, 2003. The Second Directive ordered a moratorium on the solicitation or issuance of new or renewal contracts of insurance or insurance policies by ROA. New contracts of insurance and insurance policies were allowed and issued by ROA if the contract or policy was legally bound by ROA before January 29, 2003. Based on the Second Directive, subscribers and policyholders were advised that if their insurance policy expired on or after January 29, 2003, the insurance policy would not be renewed by ROA.
Question:
Has a moratorium been imposed on ROA regarding reinsurance?
Answer:
Yes, the Second Directive also imposed a moratorium on the assumption of new risks through reinsurance on or after January 29, 2003. Policyholders of insurance companies that were reinsured by ROA should contact their insurance company for additional information about how this directive may affect their insurance policies.