American FlagIn 2003, the Soldiers and Sailors Civil Relief Act was rewritten, and the name changed to Servicemembers Civil Relief Act.  Basically the act applies to any service members including reservists and National Guard members that are called to active duty.

Accountants, doctors, lawyers, and some other professionals can ask in writing that their insurance company suspend their professional liability policy while they're on active duty.  Federal law requires insurance companies to cancel the coverage and to reinstate it if a service member requests reinstatement within 30 days of return.

Service members don’t have to pay premiums during the cancellation and could get money back if they've already paid the premiums. As with any claims-made coverage you should not cancel your liability coverage as you won’t have any liability protection while the coverage is canceled.

It also caps the interest rate that can be charged on a finance premium contract to 6% suspending payments until the member active service has ended.

Lee Norcross 
Contact Me Today
Lee Norcross, MBA, CPCU

Managing Director, CEO

(616) 940-1101 Ext. 7080 
Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

View Mobile Version