Car insured by Key? Get a new policy asap
Anyone who has a car insurance policy provided by Key Insurance Company needs to take immediate action to find a new insurance carrier or they could face a lapse in coverage and financial consequences.
Why?
A Kansas District Court determined this month that further operation by Key Insurance, “…would be hazardous financially to its policyholders, creditors or the public,” information from the insurance company states. Key Insurance is now in a “rehabilitation” process that bars the company from continuing to offer its services.
“The Nevada Division of Insurance is alerting Nevada consumers that Key Insurance Company, which provides over 22,000 auto insurance policies in Nevada, has been placed into receivership by a Kansas court order,” a news release from the state agency announced on March 19. “As a result, Key Insurance Company has been prohibited from issuing new policies or renewing existing policies.”
Therefore, residents of the Silver State who have coverage through Key Insurance are urged to secure replacement coverage as soon as possible. “The division strongly advises affected consumers to seek new coverage without delay to avoid a lapse in their insurance,” the news release stressed, with Insurance Commissioner Scott Kipper reiterating, “Policyholders should act swiftly to obtain new coverage to remain compliant with Nevada’s auto insurance requirements.”
As detailed by the Nevada Dept. of Motor Vehicles, in this state there is no grace period for a lapse in auto insurance coverage - even a single day without it results in suspension of the vehicle’s registration. Reinstatement of registration comes with a minimum $250 fee, which goes up depending on the number of previous lapses on the driver’s record and can include additional fines.
“The division encourages consumers to work with trusted local brokers and producers to obtain new coverage,” the news release stated.
What about those who are experiencing challenges in finding new coverage due to being non-renewed? The division suggests residents contact its office for assistance at 888-872-3234 or via email at InsInfo@doi.nv.gov
Some residents may have issues getting new coverage through a broker and for those, the division recommends contacting the Western Association Automobile Insurance Plan (WAAIP), “…who is able to provide coverage for qualified individuals,” the division noted. “Nevada is one of several states that comprise an association of auto plans referred to as the WAAIP. WAAIP is a processing center where people who have trouble buying automobile insurance are put in touch with an insurance company which will insure them.”
The WAAIP can be reached at 800-227-4659.
In the event a resident does experience a lapse in coverage due to the non-renewal of their policy, they can work with the DMV to avoid the associated fees and fines. Visit app.smartsheet.com/b/form/361642c2a8f2411e960eadbb099feb7d to fill out the Nevada DMV Smart Form. “Once submitted, the DMV will verify records, assess the time frame of any coverage gap and determine whether a fine is applicable,” the division stated.
Those who have already renewed a policy with Key Insurance with an effective date on or after March 4 and paid a premium will be receive an automatic refund through the same payment method used, with no action required by policyholders.
The order placing Key Insurance Company into receivership was issued by the District Court of Shawnee County, Kansas following a petition filed by Kansas State Insurance Commissioner Vicki Schmidt, who has been appointed as the “rehabilitator” for the company.
“Schmidt has hired Jodi Adolf and Bruce Baty with the law first Norton Rose Fulbright US LLP to act as Special Deputy Receivers to oversee daily operations,” a statement from Key Insurance explained. “The purpose of rehabilitation is to revitalize Key and avoid liquidations for the protection of policyholders. However, if the rehabilitation is, for any reason, unsuccessful, then Key would be placed into court-ordered liquidation.”
There is no projected timeline for how long the company will remain under rehabilitation.
“Additional information regarding the Key receivership will be posted from time to time at KeyInsCo.com,” the company noted.
For more information on the receivership’s impact to Nevada policyholders or assistance in obtaining new coverage contact the Nevada Division of Insurance at 775-687-0700 in Carson City or 702-486-4009 in Las Vegas.
Contact reporter Robin Hebrock at rhebrock@pvtimes.com
