Illinois Insurance Grace Period for Federal Employees During Shutdown

Springfield Office 320 W. Washingt on Street Springfield, Il linois 62767 (217) 782-4515 Chicago Office 115 S. LaSa lle St., 13 th Floor Chicago, Illinois 60 603 (312) 814-2420 Illinois Department of Insurance JB PRITZKER Governor ANN GILLESPIE Director TO: All Licensed Property and Casualty Insura nce Companies Writing Fire and Extended Coverage Insurance and Automobile Insurance FROM: Ann Gillespie, Director DATE: October 16, 2025 RE: Company Bulletin 2025-17 – Federal Government Shutdown – Grace Period for Federal Employees ___________________________________________________________________________________ A lapse in federal appropriations (“federal shutdown”) occurred on October 1, 2025, impacting more than 153,000 Illinois consumers who are employees of the federal gove rnment. These consumers may be subject to uncompensated furlough or may be required to conti nue working without compensation. These consumers may experience fin ancial hardship while on uncompensated status during the federal shutdown. Given the ongoing federal shutdown, the Illinois Department of Insuranc e (“Department”) has determined that certain safeguards are necessary for federal employees to ensure Illinois insu rance consumer rights are protected and that Illinois co nsumers do not suffer unnecessary hardship during these trying times. The Department hereby requests that insurers wr iting fire and extended coverage insurance and/or automob ile insurance policies (“insurers”) as defined in 215 ILCS 5/143.13 implement various safeguards, including those set forth herein, to address diff iculties consumers may face through circumstances beyond their control. These measures provide some peac e of mind and ensure consumers do not lose important insurance cove rage during this difficult time. The Department hereby requests th at all insurers immedia tely consider implementing the following protective measures for policyholders who are fed eral employees. Insurers need not file policy or rating manual changes to implement these measures. 1. Moratorium on cancellations. Insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after October 1, 2025, on any in-force policy due to non-payment of premium. Insurers are asked to continue coverage in cases of unpaid pre mium for at least 30 days or th rough the duration of the federal shutdown, whichever is longer. If following the end of the federal shutdown an affected consumer indicates to an insure r that they have not yet receiv ed their guaranteed compensation

Springfield Office 320 W. Washingt on Street Springfield, Il linois 62767 (217) 782-4515 Chicago Office 115 S. LaSa lle St., 13 th Floor Chicago, Illinois 60 603 (312) 814-2420 for the period of the federal shutdown, the Depar tment requests tha t insure rs continue coverage, even in cases of unpaid premium, fo r at least an additional 30 days. 2. Time-period extension for repairs. If a consumer indicates to an insurer that repairs cannot be completed within the ti me required under any policy, or with in the 90-day pe riod for repairs before termination due to c ondition of the property (215 ILCS 5/143.27), the Department requests that insurers provide consumers with an extension of at le ast 30 days to make such repairs, or such time as is necessary. If you have any questions or concerns regarding this bulletin, please contact DOI.InfoDesk@illinois.gov.