Premium Grace Period during the COVID- 19 crisis

To support our customers during the COVID-19 crisis, we are extending a 60 day grace period on policy premiums through May 31, 2020, unless state-specific mandates/guidelines are more generous. We will continue to update this page as we receive state-specific mandates/guidelines.

Alaska

“The Alaska Division of Insurance (DOI) advised that the company may not terminate insurance contracts due to non-payment. The Director of Insurance issued this guidance based on the authority given the Director during an emergency, as provided under Alaska law. This effort will provide relief to affected policyholders by allowing continuing insurance coverage. In conjunction with this effort, the DOI will work with the company to minimize the regulatory effects of such an extension, specifically financial review mandates.”

“The extension of the grace period: Does not eliminate the obligation to pay the premium; but limits policy cancellation for late payment.”

Update: April 15th

Prohibits carriers from terminating insurance contracts due to non-payment of premium. The DOI will work with carriers to minimize the regulatory effects of such an extension, specifically financial review requirements. The extension of the grace period does not eliminate the obligation to pay the premium, but limits policy cancellation for past due payment. Carriers are encouraged to work with policyholders in the collection of premiums and to waive all late fees. Bulletin remains in effect until June 1, 2020.

For more information visit: aws.state.ak.us

Alabama

The Alabama Commissioner of Insurance recommends the following actions for policies in force as of March 13, 2020: relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, allowing premium payment plans which will avoid a lapse in coverage, expanding automobile coverage to allow personal vehicles to be covered when delivering food, medicine or other essential services, insurers should consider cancellation or non-renewal of policies only after exhausting all efforts to work with policyholders to continue coverage, a policy may be cancelled or non-renewed for legally recognized reasons or policy provisions other than late or failure to pay premiums.

Update 5/20

The commissioner requests insurers, producers, and other licensees who accept premium payments to consider alternate methods of payment. The methods need to be consistent with safe social distancing standards and eliminate the need for in person payment. This may include online or other electronic transfers. Recommendations include relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, and allowing premium payment plans which will avoid a lapse in coverage.

For more information visit: aldoi.gov

Arkansas

The Department has issued a sixty (60) day moratorium on the cancellation/non-renewal of insurance

policies for the non-payment of premiums for Arkansas diagnosed with/positively tested for COVID-

19. The moratorium shall apply to all insurance policies in this state and shall not be construed as a

waiver; it is only an extension or grace period in which to pay premiums.

Dated March 27, 2020

Summary: This bulletin issues a 60-day moratorium on the cancellation/non-renewal of personal lines insurance policies and directs all insurers that all insurance policies in effect on March 11 will remain in effect until the expiration of the state of emergency. The moratorium applies to Arkansas residents who have been terminated, laid off, or who are self-employed or an independent contracted and have experienced a cessation of work as a consequence of the COVID-19 health emergency. The bulletin also informs policyholders that the moratorium is not a waiver, but an extension or grace period to pay premiums, and that they must request the extension from their insurance carriers.

Update 5/20/2020

To assist citizens who may struggle to overcome obstacles during this health emergency, the Commissioner is hereby issuing a forty-five (45) day moratorium on the cancellation/non-renewal of personal lines and life and health insurance policies for the non-payment of premiums for the following Arkansas residents who, since March 11, 2020, have:

• Been diagnosed with/positively tested for COVID-19; or

• As a consequence of the COVID-19 health emergency, have been terminated, laid off, or who are self-employed or an independent contractor and have experienced a cessation of work.

Additionally, the Commissioner directs all insurers and regulated entities that personal lines and life and health insurance policies for Arkansas residents described above in effect on May 5, 2020 remain in effect until such time as Executive Order 20-25 expires.

POLICYHOLDER RESPONSIBILITIES

This moratorium extension is not automatic. To be eligible for the 45-day moratorium, affected policyholders must request this extension from their insurance carriers.

Insurance carriers may request evidence of diagnosis or employment disruption. Citizens who apply for unemployment benefits as a result of the health emergency and are approved are presumptively subject to this moratorium.

The 45-day moratorium period, where requested by the policyholder, is effective starting from the date of issuance of Executive Order 20-25.

For more information visit: insurance.arkansas.gov/

California

Insurance companies are requested to provide their insured with at least a 60-day grace period to pay

insurance premiums so that insurance policies are not cancelled for nonpayment of premium during the COVID-19 outbreak.

Update: April 15th

This Notice informs insurers that should not attempt to enforce policy or statutory deadlines on policyholders until 90 days after the end of the statewide “state of emergency” or other “state of emergency” that impacts a specific policyholder. The Department of Insurance has clarified that the Notice is not intended to extend the previously requested 60-day grace period in the Commissioner’s March 18, 2020 Notice.ida

For more information visit: insurance.ca.gov/

Connecticut

All insurance companies provide their insureds with at least a 60-day grace period to pay insurance

premiums so that insurance policies are not canceled for nonpayment of the premium during this challenging time due to circumstances beyond the control of the insured.

Update: April 15th

This Executive Order, issued in response to the COVID-19 pandemic, informs insurance carriers that beginning on April 1, 2020, for a period of 60 calendar days ending on June 1, 2020, no insurer may, without a court order, lapse, terminate or cause to be forfeited a covered insurance policy because a covered policyholder does not pay a premium or interest or indebtedness on a premium under the policy that is due with certain exceptions. The Order also details how the grace period should apply to various groups of insureds.

The Department believes that it would be appropriate for insurers to notify insureds, brokers and producers of the 60-day grace period by any reasonable means including, but not limited to, electronic communications. Written notice is not required.

For more information visit: https://portal.ct.gov/cid

Delaware

Governor Carney issues 23rd Modification to the June 30 State of Emergency Declaration that included revised insurance provisions concerning policy payment and cancellations. The Modification strikes the previous insurance-related sections in Modifications 6 and 9, to end the indefinite grace period and lift the moratorium on cancellations for covered policyholders due to nonpayment of premium.

This Bulletin provides guidance to insurers regarding compliance with regulatory requirements during the COVID-19 public health emergency. Specifically, this Bulletin addresses cancellation and nonrenewal of insurance policies; electronic filings, electronic signatures, and notarization; on-site examinations; insurance company premium tax payment deadlines; temporary licenses; regulatory filing deadlines, response deadlines and requests for extension. [Ed. Note: This Bulletin has been revised and reissued to inform insurers that arbitration hearings will now be held electronically and that temporary licenses will no longer be issued as of June 30, 2020. The revision to the bulletin also informs producers that all temporary licenses will lapse on September 30, 2020. The revision to the bulletin also informs producers that all temporary licenses will lapse on September 30, 2020. The bulletin has been revised and reissued a second time to inform insurers that the moratorium on cancellation and nonrenewals of policies has been lifted and that insurers must grant policyholders suffering a COVID-19 hardship an extension of premium repayments.]

For more information visit: Insurance.delaware.gov

Florida

Regulated entities are encouraged, when prudently possible, to be flexible with premium payments in order to avoid a lapse in coverage. Such flexibility can include; relaxing due dates; extending grace or reinstatement periods; waiving late fees and penalties; and allowing payment plans.

For more information email: IM2004M@floir.com

Georgia

Directs all P&C carriers to refrain from canceling any commercial policies, including Business Interruption, for 60 days (May 20, 2020) but could be extended.

For more information visit: oci.ga.gov

Hawaii

This memorandum encourages insurers to work with their insureds to ensure that coverage continues during the COVID-19 outbreak, including refraining from cancelling policies due to non-payment and granting a grace period for premium payments to be made. The memorandum also encourages insurers to work with insureds on a structured payment plan for late premiums, waive late fees and penalties, and to continue to work with insureds for a period of 60 days after the health emergency has passed.

Update 6/10/2020

Declares that the disaster emergency relief period shall continue through July 31, 2020 unless terminated or extended by a separate proclamation, whichever shall occur first.

Update 7/29/2020

This commissioner's memorandum extends the effectiveness of Memorandum 2020-1LIC, relating to online producer licensing, and Memorandum 2020-4A, relating to policyholder grace periods, until otherwise determined by the Commissioner.

For more information visit: cca.hawaii.gov

Illinois

This bulletin outlines that insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after March 9, 2020 on any in-force policy. Insurers should consider postponing the issuance of any new cancellation or nonrenewal notices through April 30, 2020, or a later time if considered reasonable given an individual consumer’s circumstance. Insurers are asked to continue coverage, even in cases of unpaid premium, through at least April 30, 2020.

Update 5/20/2020

This emergency rule requires insurers to allow an insured, upon request, to defer premium payments without interest for limited-scope dental benefits for at least 60 days from each original premium due date. The emergency rule also prohibits insurers from cancelling or nonrenewing limited-scope dental insurance for insureds who have already failed to make a premium payment for at least 60 days after April 20, 2020. While the emergency rule does not apply to supplemental benefits generally (except where provided for limited-scope dental benefits), the Department of Insurance urged issuers of stop-loss insurance to comply with these rules as though they were issuers of group health insurance coverage to the maximum extent possible in Company Bulletin 2020-11.

For more information visit: insurance.illinois.gov/

Indiana

The order states that the Indiana Department of Insurance (IDOI) Commissioner Steve

Robertson will request that all insurers implement a 60-day moratorium on policy cancellations for nonpayment of premiums. However, to date, the IDOI has not released guidance to that effect.

This bulletin requests that insurers institute a 60-day moratorium on policy cancellations and non-renewals for any premium payment due from March 19, 2020, to May 18, 2020. The bulletin requires insurers to work with impacted policyholders in paying premiums that would have been due during the moratorium. The bulletin also implements a 60-day grace period relating to renewals and cancellations for all licensees, including premium tax filings.

For more information visit: in.gov

Kansas

KID does not have the authority to mandate a moratorium on policy cancellations due to nonpayment of premium but encourages companies to work with policyholders on extended grace periods or payment plans

For more information visit: insurance.kansas.gov

Kentucky

Insurance Commissioner Sharon Clark issued guidance on April 24, 2020, to notify insurers that, during the State of Emergency currently in effect, the Department will not consider certain activities as unfair trade practices, including (1) waiving fees, penalties or other charges relating to an insured’s temporary inability to make premium payments, (2) extending grace periods, (3) extending the effective termination date of cancellations and nonrenewal, (4) extending submission deadlines for proof of loss, and (5) encouraging insureds to use electronic payment technology that aids social distancing. Implementing any of these measures is at the discretion of each insurer. The Department may also permit reasonable deviation from filed rates or contractual language when applied uniformly and without prejudice to all similarly affected insureds and the insurer has notified the Commissioner in writing of its proposal for premium relief.

Louisiana

On March 27, 2020, Louisiana issued an Emergency Rule to suspend and disallow the cancellation, non-renewal or non-reinstatement of any insurance policy that was in force and effect at 12:01 a.m. (CT) on March 12, 2020, until the earlier of May 12, 2020, or the date on which the Governor lifts the State of Emergency presently in effect. Emergency Rule 40 also permits all insurers, except health insurers, receiving a claim from an insured owing a premium to offset the premium owed from any claim payment made to the insured. With regard to health insurance only (which includes disability income and long-term care insurance, among other coverages), the Emergency Rule (1) suspends all claims notification procedures, (2) suspends provisions related to timely payment of claims to the extent necessary to permit the pending of claims during a premium payment delinquency by the insured, (3) stipulates the rate at which payment must be made to a health care provider under certain circumstances, (4) suspends physician credentialing requirements, (5) suspends and defers any rate increases that were to take effect after March 26, 2020, until the earlier of May 12, 2020, or the date on which the Governor lifts the State of Emergency presently in effect, and (6) requires group health insurers to provide all members or certificate holders under a group health insurance policy the option to continue coverage. Valid to May 13, 2020

For more information visit: ldi.la.gov/

Maine

As the COVID- 19 situation continues carriers should continually assess their readiness and be prepared to make any necessary adjustments to their operations. Carriers must prioritize consumers’ needs, must make every effort to expedite claims approvals and payments and other essential customer service functions, and must make all reasonable accommodations for late payments and other problems that are beyond the consumer’s control.

For more information visit: www.maine.gov

Maryland

“In light of these difficult circumstances, I encourage all Life & Health Carriers and Property and Casualty Insurers doing business in the State to make reasonable accommodations so that individuals and businesses do not lose coverage due to non-payment of premium during this emergency. Reasonable accommodations may include suspension of premiums due, extension of billing due dates and premium grace periods, and waiver of installment and late payment fees. Insurers should take steps to encourage policyholders to use electronic payment technology on websites, apps and electronic bank transfers whenever possible. This Bulletin applies to both personal and commercial lines of property and casualty insurance and all lines of life and health insurance.”

For the complete bulletin visit: insurance.maryland.gov

Massachusetts

This bulletin outlines that the Insurance Division is to provide information to all Insurance Carriers, regardless of line of coverage, about the expectations regarding steps to preserve and maintain coverage for consumers in Massachusetts during COVID-19. It notes that companies should be flexible in collecting premiums and find ways to address this unprecedented time. In addition, carriers are to explain grace periods that usually allow policy holders to be late for a month on their payments without coverage being terminated and explore ways to eliminate late fees, installment fees and non-sufficient fund fees.

For more information visit: mass.gov

Michigan

This bulletin advises all insurers doing business in Michigan, regardless of the line of coverage, to consider flexibility to help insureds avoid additional financial consequences as a result of their inability to pay insurance premiums or timely file claims.

Regarding insurance premium payments, the Director strongly encourages insurers to provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium. Insurers may effectuate this directive by offering payment accommodations, such as allowing consumers to defer payments (without incurring interest), extending payment due dates, and/or waiving late or reinstatement fees. DIFS encourages insurers to allow for payment plans for the back due premium at the end of an insured’s 60-day grace period, in lieu of a balloon-type premium bill.

Furthermore, automobile and home insurers offering insurance under the Essential Insurance Act should consider allowing flexibility related to eligibility determinations related to non-payment of premium.

For more information visit: michigan.gov/difs

Mississippi

The Mississippi Insurance Department issued a 60-day moratorium on the cancellation/ non-renewal

of policies for the non-payment on premiums, effective March 14, 2020. This bulletin applies to all

policies issued or issued for delivery in Mississippi.

Update 5/20/2020

This Bulletin clarifies Bulletin 2020-3 (as amended) on the moratorium of policy cancellations/non-renewals in the context of the COVID-19 pandemic. Specifically, this Bulletin states that insurers may issue cancellation/non-renewal notices for non-payment of premiums during the 60-day moratorium but in no event may a cancellation/non-renewal for non-payment be effective until after the 60-day moratorium period expires.

The Legal Division Director of the Department of Insurance has confirmed that the sixty (60) day moratorium on the cancellation or non-renewal of policies for nonpayment of premium that became effective on March 24, 2020, applies regardless of the reason for the nonpayment. Failure to pay the premium does not have to be the result of the COVID-19 pandemic. If there is a legally recognized reason for cancellation or nonrenewal other than nonpayment of premium, then the cancellation or nonrenewal may be made pursuant to the existing statutory or policy notice requirement.

For more information visit: mid.ms.gov/

Missouri

This bulletin outlines that coverage for residents of the State of Missouri should continue under all insurance policies in effect as of March 13, 2020, and shall remain in effect until such time as Executive Order 20-04 is terminated or this bulletin is rescinded, whichever is later. Insurers are strongly encouraged not to cancel, non-renew, or terminate coverage while this Bulletin is in effect. This grace period is a period of time during which consumers can take those actions necessary to keep their policies in force. The Department is not requiring insurers to waive any premiums or other consideration owed on any policy or contract during this period of time. The Department anticipates that a failure to pay premiums or remit consideration may subject the policy to a retroactive cancellation, in accordance with the policy terms.

For more information visit: insurance.mo.gov/

Montana

To help Montanans during the COVID-19 pandemic, the Commissioner of Securities and Insurance is asking the company to consider the following while also maintaining its obligations and solvency for its customers:

Provide flexible payment solutions for families, individuals, and businesses by: Providing additional time to make payments; and allowing grace periods to delay premium payments; suspend premium billing for small businesses such as restaurants, bars, and others that have been shut down or had their operations severely reduced, for a specific number of days or billing cycles; waiving insurance premium late fees and other fees for families, individuals, and businesses; pause cancellation of coverage for motorists due to temporary non-payment and policy expiration; and streamline administrative processes and paperwork to ease consumer burdens and facilitate continuous coverage.

For more information visit: csimt.gov

Nebraska

The Insurance Department issued a Notice to all insurers on March 27, 2020 related to relaxing notice of loss requirements, premium payment provisions, and cancellation and non-renewal timeframes. The Department clarified that any insurer administering accommodations must do so on a “consistent and fair basis” in order to comply with applicable Nebraska laws. Further, amendatory filings and prior approvals for said accommodations will not be required if the accommodation is requested of the Department’s P&C Division.

For more information visit: doi.nebraska.gov

Nevada

This statement from the Insurance Commissioner encourages all health insurance carriers to consider relief for premium concerns due to COVID-19 related financial hardships, including providing an additional 60-day grace period before cancelling coverage and providing flexibility with due dates for premiums.

For more information visit: doi.nv.gov/

New Jersey

This bulletin encourages insurers to provide accommodations to consumers affected by the

coronavirus, such as the extension of grace periods, the waiver of late fees and penalties, and forbearance with the cancellation and non-renewal of policies

Update: April 15th

The Department of Banking and Insurance (DOBI) issued Bulletin 20-16, 90-Day Grace Period For Life Insurance Premium Payments Due to the Disruption Caused by COVID-19. Consistent with the Executive Order issued on April 9 (and previously reported), the DOBI is directing all licensed life insurers to provide policyholders, that were in good standing with their insurance carrier on March 1, 2020, with at least a 90-day grace period to pay life insurance and annuity contracts premiums so that such policies or contract are not cancelled for nonpayment of premium during this challenging time. A policyholder may elect this 90-day emergency grace period to begin retroactively on April 1, 2020 or opt for the grace period to begin on May 1, 2020. Insurers are also directed to waive late payment fees, extend to 90 days the period to exercise policyholder and contract holder rights and benefits, and allow premiums due but not paid during the 90-day period to be paid over the course of the following year in up to 12 equal installments, with insurers allowed to permit a longer repayment period. Per the Bulletin, the grace period is not intended to be considered a forgiveness of the premium. Insurers are directed to, in addition to posting information on their website, provide each policyholder with an easily readable written description of the terms of the extended group period and submit the description to the DOBI, via SERFF, as an informational filing. ACLI discussed with the DOBI the language allowing the policyholder the right to select either the April 1 or May 1 date to begin the grace period, and per the DOBI they included this language because they wanted the grace period to be extended to policyholders who may have paid their April premiums but then subsequently lose their jobs.

For more information visit: state.nj.us/dobi/index.html

New Mexico

This bulletin requests that insurers provide accommodations for consumers during the COVID-19 public health emergency, including grace periods for premium payment and refraining from cancellation or non-renewal of policies. Insurers are also encouraged to extend these accommodations for a minimum of 30 days after the emergency is declared over and then work with consumers to allow them to catch-up on past due premiums.

For more information visit: https://askjan.org

New York

Sections 3203 and 4510 of the Insurance Law are modified to extend the grace period for the payment of premiums and fees to 90 days for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic;

Sections 3203, 3219, and 3220 of the Insurance Law are modified to provide a life insurance policyholder or annuity contract holder or a certificate holder, as those terms are used in such sections, under a group policy or contract with 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder or contract holder or certificate holder under the group policy or contract who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic;

UPDATED 6/18/2020

Governor Cuomo issued Executive Order 202.38 on June 6 continuing several temporary suspension and modification of laws relating to the disaster emergency. Among them is the extension of Executive Order 202.13 for another 30 days until July 6th. As previously reported Executive Order 202.13 requires insurers to provide a policyholder with a 90 day grace period and 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic. The order was originally set to expire on May 7, was extended to June 6 via Executive Order 202.28 and now is extended for the second time another 30 days to July 6.

For more information visit: naswnyc.org/

North Dakota

The Insurance Department issued this Bulletin to urge insurers to provide flexibility and possible relief from certain insurance requirements including but not limited to extensions of a premium payment deadline, extension of an existing premium grace period, and additional time before non-renewals or cancellations become effective.

For more information visit: nd.gov

North Carolina

Commissioner Mike Causey issued a Directive (PDF) on Tuesday, March 24, which among other things, “urges insurers to consider the following actions: consistent with prudent insurance practices, relaxing due dates for premiums payments, extending grace periods, waiving late fees and penalties, and allowing payment plans for premiums payments to otherwise avoid a lapse in coverage. Insurers should also consider cancellation or non-renewal of policies only after exhausting other efforts to work with policyholders to continue coverage.”

This order issued by the Commissioner of Insurance declares a disaster in all 100 North Carolina counties and requires the deferral of premium payments for all residents. The order will expire 30 days from March 27, 2020.

For more information visit: ncdoi.gov

Ohio

The company must allow employers to continue covering employees under group policies even if the employee would otherwise become ineligible due to a decrease in hours worked per week. The company must allow employers to continue providing coverage to employees under group policies regardless of any “actively at work” or similar eligibility requirements contained in the policy. The company is prohibited from increasing premium rates due to a group's decreased enrollment or participation due to COVID-19. The company must give insureds the option of deferring premium payments coming due, interest free, for up to 60 calendar days from each original premium due date. Valid at the expiration of state of emergency.

For more information visit: insurance.ohio.gov

Oklahoma

The company should not cancel the coverage of any person who has been diagnosed with COVID-19 and is unable to return to work or maintain coverage under their current health carrier because of COVID-19 for the next 90 days. The company should extend the traditional 30-day grace period to a 60-day period for nonpayment of premiums. Federal rules governing marketplace policies (ACA) are in effect with regard to grace periods. Although the information in this Update is intended to apply to all insured plans that are regulated by the Department, it is strongly recommended that Oklahoma self-funded plans follow the same directives. The information in this Update is in effect until the emergency is no longer in effect.

For more information visit: oid.ok.gov/

Oregon

This temporary order mandates that insurance companies institute a grace period for premiums for all insurance issued in the state. Insurance companies are to suspend all cancellations and nonrenewals for active insurance policies. This also includes extending all deadlines for consumers to report claims and communicate about claims, which is 30 days unless extended. Insurers, agent and brokers are also asked to provide consumers the ability to make premium payments and report claims while maintaining safe social distancing standards.

Update 6/29/2020

Extends order directing insurers to extend claims related deadlines, establish claims reporting methods consistent with social distancing, institute a grace period for premium payments, and suspend policy cancellations and non-renewals through July 22, 2020.

Update 7/29/2020

This emergency order extends the duration of the previously issued disability and life insurance order and the resulting policyholder relief through August 21, 2020.

This emergency order extends the duration of the previously issued long-term care insurance order and the resulting policyholder relief through August 21, 2020.

For more information visit: dfr.oregon.gov

Pennsylvania

Encourages companies, consistent with prudent practices, to relax due dates for premium payments, extending grace periods, waive penalties and late fees and allow payment plans. Encourages companies to consider cancellation or non-renewal only after working with policyholders to try to continue coverage.

For more information visit: insurance.pa.gov

Rhode Island

Bulletin requests that insurers provide grace periods for premium payments and other accommodations to policyholders during the COVID-19 public health emergency.

For more information visit: dbr.ri.gov/

South Carolina

The bulletin advises all insurers, HMOs, and other licensed or authorized entities and individuals that the Director of Insurance expects the insurance industry to work with South Carolina citizens directly impacted by the coronavirus outbreak by among others, extending premium payment deadlines, allow additional time before non-renewals or cancellations become effective, extension of proof of loss deadlines, and waiver of fees, penalties or other charges relating to an insured’s temporary inability to submit premium payments or otherwise respond as a result of this pandemic.

For more information visit: doi.sc.gov/

South Dakota

Insurance Commissioner Larry Deiter has issued Bulletin 20-02 in response to the growing novel coronavirus pandemic in the state. Specifically, this bulletin strongly requests that all health insurance carriers make reasonable accommodation for premium payments prior to cancellation and refrain from cancelling coverage for individuals that have been diagnosed with COVID-19. Accommodations include extended grace periods for payment of premiums. This Bulletin applies only to health carriers.

For more information visit: https://dlr.sd.gov/insurance/

Tennessee

Insurance Commissioner Hodgen Mainda issued Bulletin 20-03 on March 24, 2020, to encourage insurers to work with policyholders who are concerned about their ability to pay premium to ensure existing insurance coverage can be maintained. Insurers are also encouraged to explore ways to eliminate late fees, non-sufficient funds fees and installment fees, and to streamline administrative processes and paperwork to facilitate continuous coverage and ease burdens on policyholders.

For more information visit: tn.gov

Texas

“Taken together, the Governor’s suspension and the Commissioner’s declaration have the effect of extending claim-handling deadlines imposed by the state’s prompt payment laws for an additional 15 days to help carriers respond to the COVID-19 outbreak. This extension will be in effect until the Governor’s suspension and Commissioner’s declaration are lifted.”

“TDI expects all carriers to work with policyholders who may experience financial hardships due to the COVID-19 outbreak. TDI encourages carriers to use grace periods for payments, temporary suspension of premium payments, payment plans, and other actions to allow continuing insurance coverage as appropriate. TDI will work with carriers to minimize the regulatory effects of an insurer’s actions to provide policyholder relief, specifically for financial review requirements. The term “suspension” is not intended to mean the forgiveness of the premium.”

“Automatic bank drafts for premium payments may continue according to a carrier’s written agreement with a policyholder, unless a policyholder notifies a carrier of a specific hardship. This should be weighed against the potential disruption to a carrier’s business model or the inconvenience caused to the policyholder by multiple payments. It is TDI’s expectation that carriers will work directly with policyholders to resolve issues and minimize the effects of any penalties or additional charges.”

For more information visit: tdi.texas.gov

Vermont

Accordingly, the Department of Financial Regulation is requesting that the company provide its policyholders with a reasonable grace period to pay insurance premiums to avoid policies being cancelled for nonpayment of premium due to the COVID-19 public health emergency.

For more information visit: dfr.vermont.gov

Washington

Insurance Commissioner Mike Kreidler issued Emergency Order 20-04 requiring a grace period of at least 60 days for all stand-alone dental plans certified by the Washington Health Benefit Exchange as qualified dental plans. His order also clarifies that during the grace period for dental plans, insurers are responsible for paying claims for all covered services during the first 30 days. The order is in effect until May 23, 2020.

For more information visit: https://www.insurance.wa.gov/

West Virginia

Insurers and other regulated entities should be flexible with respect to allowing alternative payment arrangements for the satisfaction of premiums that are due or that which may become delinquent as a result of the COVID-19 emergency. However, nothing herein shall be construed to exempt or excuse an insured from the obligation to pay the premiums otherwise due for insurance coverage or benefit provided or received.

For more information visit: wvinsurance.gov/

Wisconsin

Insurers are encouraged to offer flexibility to insureds who are incurring economic hardship. This flexibility can include offering non-cancellation periods, deferred premium payments, premium holidays and acceleration or waiver of underwriting requirements. OCI will not view any accommodations made to insureds incurring economic hardship during the COVID-19 public health emergency as violating insurance laws such as unfair inducement prohibitions. Accommodations should not be applied in an unfairly discriminatory manner.

For more information visit: wisconsin.gov