Sec. 31.08.12.03. Moratorium Protocol

A. An insurer shall design a temporary moratorium protocol to have the least impact on the conduct of insurance business throughout the State as reasonably possible.

B. An insurer may not utilize the activation of a temporary moratorium to suspend the binding or writing of all of its lines of insurance business unless the suspension is reasonably related to the event or emergency that triggered the activation of the temporary moratorium.

C. A temporary moratorium may not become effective until triggered by at least one of the following events or emergencies:

(1) The National Weather Service issues a hurricane or tropical storm watch, warning, or advisory for part of the State or the entire State. For the purpose of this subsection, the “National Weather Service” shall mean the National Weather Service, National Hurricane Center in Miami, Florida, and its regional National Weather Service Forecast Office covering a part of the State.

(2) The Governor or other governmental entity declares a state of emergency for part of the State or the entire State;

(3) The announcement of an evacuation, whether mandatory or voluntary, for part of the State or the entire State;

(4) The imposition of a special curfew for part of the State or the entire State; or

(5) The onset of an earthquake that is in an area within:

(a) 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter scale; or

(b) 100 miles of the epicenter of an earthquake that measures greater than 5.9 on the Richter scale.

D. The temporary moratorium shall be limited to parts of the State:

(1) For which the National Weather Service has issued a hurricane or tropical storm watch, warning, or advisory;

(2) That are included within a government-declared state of emergency;

(3) That are under an evacuation order, whether mandatory or voluntary;

(4) That are under a special curfew; or

(5) That are within:

(a) 50 miles of the epicenter of an earthquake that measures 5.0 to 5.9 on the Richter scale; or

(b) 100 miles of the epicenter of an earthquake that measures greater than 5.9 on the Richter scale.

E. A temporary moratorium shall apply only to lines of insurance business that are reasonably expected to be affected by the events or emergencies listed in §C of this regulation that triggered the activation of the temporary moratorium.