A moratorium is when carriers will put a stop on writing a certain type of business for a limited period of time, generally to avoid adverse selection. It is common when hurricanes approach carriers will put a moratorium on writing new property coverages when a storm is named lasting until the storm passes and is downgraded. The carrier avoids a sudden influx of policies that are exposed to the approaching hazard that are likely to cancel the insurance after the hazard passes.
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A legal authorization to debtors to postpone payment.