Insurance – Legislation Updates
Grace Period for Payment of Insurance Premiums for Businesses Amid COVID-19 – APPROVED
The Department of Banking and Insurance is directing property and casualty carriers to:
- Provide a 90-day grace period to pay insurance premiums and continue paying claims during this period; allow policy holders to pay premiums not paid during the 90-day period over the remainder of the current policy term or in up to 12 months, whichever is longer;
- Waive late payment fees otherwise due, and not report late payments to credit rating agencies;
- Ensure that late payments during the 90-day period are not considered in any future premium calculations at any time (i.e. applicable late payments should not be counted for any rating, pricing, tiering attributes, etc.); and
- Permit the grace period to be applied to all installment payments, including renewal down payments, provided that the insured provides notice to the insurer that they wish to continue coverage.
Follow this link to learn more https://www.state.nj.us/dobi/pressreleases/pr200410.html
Business Interruption Coverage Mandate – PENDING Legislation
AB 3844 would compel insurance companies to cover business interruption claims by New Jersey small-business owners during the COVID-19 state-of-emergency declaration by Gov. Phil Murphy. Insurers would be required to pay lost business income for the duration of the declared State of Emergency. Although the bill is opposed by the insurance industry, it does enable insurers to apply to the Insurance Commissioner for relief and reimbursement, which may be paid through “special purpose apportionments” or funds the Commissioner collects from property and casualty insurers. As of today, New York, Connecticut, Louisiana, Massachusetts, Ohio, Pennsylvania and Rhode Island have all similar legislation pending.
Source: Mike Egan, The Selzer Co….thank you Mike.
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