Gov. halts insurance cancellations in flood areas

Gov. Rod Blagojevich has ordered a 60-day moratorium on insurance cancellations for residents and businesses in the Illinois flood disaster areas.

The moratorium includes cancellations dating back to June 10th. It extends through August 18th.

The measure was taken because flooding can drive people from their homes and disrupt mail service. That could prevent policyholders from keeping up on payments.

The governor says he expects insurers to err on the side of consumers.

The state also is requiring insurance companies to make sure customers know about the temporary guidelines.

Blagojevich has declared 21 counties state disaster areas.