Physicians Mutual Waives Cancellation Policy, Extends Grace Periods for Katrina Victims

Omaha, Neb.-based Physicians Mutual announced it will not cancel any coverage for non-payment of premiums and will extend grace periods for those policyholders impacted by the devastating effects of Hurricane Katrina. These extensions give policyholders the time they need to focus on other important issues as they begin to rebuild their lives.

“We know that the storm has brought many challenges and heartaches for those displaced from the Gulf Coast,” stated Physicians Mutual President and Chief Executive Officer Robert Reed. “Physicians Mutual will do everything we can to continue to remain true to our promise of ‘we’re here when you need us.'”

The company said a number of actions are in place to help policyholders and victims during this time of crisis:

* Physicians Mutual will not cancel any coverage for non payment of premiums for a 90-day period for all policyholders in the affected counties or parishes of Louisiana, Alabama, Mississippi and Florida.

* The company is extending grace periods 30 days to give individuals in designated disaster areas additional time to pay premium.

* Physicians Mutual policyholders who need assistance with their coverage but are unable to reach their local Physicians Mutual office can call the home office Katrina hotline at (800) 331-3145. Or, customers can visit a special Hurricane Katrina Web page at www.physiciansmutual.com.

* Employees of Physicians Mutual are collecting funds to help support its employees and agents impacted by the disaster. The company will match the dollar amount of funds raised by employees. In addition, the Physicians Mutual Foundation is making a contribution to the American Red Cross to help policyholders and other victims of Hurricane Katrina.

* The company’s claims division will re-issue or redirect claim payments to alternate addresses for policyholders impacted by the natural disaster. The claim services division also can assist policyholders with other special needs.

* Physicians Mutual is following the guidelines set by the United States Postal Service regarding mailings and other related services.