Partner Resource Center State Guidance for Producers

COVID-19

In these very uncertain times relating to personal exposure and potential third-party liability exposure arising out of COVID-19, we recognize that many of our Professional Liability policyholders are facing many questions and concerns relating to how best to continue performing professional services. In this regard, we first note that the way the world is currently doing business in response to the virus is very fluid and in many ways dictated by rules implemented by the individual States.

Guidance - State Advisories

Revised: 05-27-2020 - Updated Daily

  • Alabama - No Expiration - both Admitted and non-admitted
    • Provide reasonable accommodations for payment
      • Relaxing due dates
      • Extending grace periods
      • Waiving fees
    • Cancellations or non-renewal of policies for non-payment only after all efforts are exhausted.

  • Alaska - Expires 11-15-2020 - both Admitted and non-admitted
    • DOI prohibits carriers from terminating insurance contracts due to non-payment
    • Carriers are encouraged to work with policyholders in collection of premium and should waive all late fees.

  • Arizona - No Expiration - both Admitted and non-admitted
    • DOI encourages to work with Insureds during this time so that coverage continues and policies don’t lapse
    • Insurers are urged to:
      • Refrain from cancelling/non-renewing for non-payment
      • Grant grace periods for premium payments
      • Payment plans for late payments
      • Waive late fees/interest/penalties
      • Delay premium increases

  • Arkansas - Rescinded their order – as of 5-11-2020 - both Admitted and non-admitted
    • Issued a 60 day moratorium on the cancellation/nonrenewal of policies for the nonpayment of premiums for people positively tested for COVID -19
    • This is not an automatic extension, affected policyholders must request extension
    • GAIG should NOT request evidence of diagnosis

  • Califormia - Expires 5-17-2020 - both Admitted and non-admitted
    • Requesting all insurance companies provide their Insureds with at least a 60 day grace period to pay insurance premiums
    • Requesting all Agents and Brokers who accept payments on behalf of insurers have the ability to make prompt payment, including alternative methods such as payment on-line.
    • The following expires 90 days after the State of Emergency is over:
      • Licensees should not attempt to enforce policy or statutory deadlines on policyholders

  • Colorado - No Expiration – both Admitted and non-admitted
    • Provide reasonable accommodations :
      • Premium grace periods
      • Waiver of fees
      • No cancellation for non-payment
      • Defer any non-renewal for underwriting action
      • Provide continuation of coverage for any policy

  • Connecticut - Expires 6-1-2020 - both Admitted and non-admitted
    • Requested a 60 day grace period for payment of premiums without penalty or interest
    • Grace period is intended to be applied to premium due after initial payment was made to secure coverage.

  • Delaware - No Expiration - both Admitted and non-admitted
    • DOI requires Insurers cease cancellation and non-renewals due to nonpayment
    • Insurance Carriers will freeze cancellations and non-renewal of policies that might have otherwise occurred due to delays in payments for individuals who have been laid off or fired due to State of Emergency or organizations who had to close or significantly reduce business
    • Requires Insurers to cease cancellations or non-renewals of policies due to nonpayment throughout the duration of the declared State of Emergency for those residents and business owners who are experiencing loss of income.
    • An Insurer would need a court order before they can seek cancellation or non-renewal.

  • Florida – No Expiration -both Admitted and non -admitted
    • Provide reasonable payment accommodations
    • Cancellations & non-renewals only after exhausting efforts with policyholder to continue coverage

  • Georgia – Expires 5-19-2020 - both Admitted and non-admitted
    • DOI instructs P&C insurer not to cancel any commercial policies for the next 60 days

  • Hawaii – No Expiration - both Admitted and non-admitted
    • Refrain from cancelling or non-renewing policies due to non-payment
    • Offer structed payment plans for late payments
    • Waive fees

  • Idaho – No Expiration – both admitted or non-admitted
    • Provide reasonable premium payment accommodations:
      • Waiver of fees
      • Extensions of grace periods for premium payment
      • Additional time before non-renewals or cancellations become effective

  • Illinois – Expires 5-29-2020 – both admitted or non-admitted
    • DOI implemented various safeguard to address problems consumers may face through circumstance beyond their control:
      • Postpone or withdraw any previous NOC or non-renewal that is effective 3-9-20 or after on any in-force policy
      • Consider postponing the issuance of any new cancellation or non-renewal notices through 5-29-2020, or later time if considered reasonable given an individual consumer’s circumstance
      • Insurer’s are asked to continue coverage , even in cases of unpaid premium, through at least 5-29-2020.

  • Indiana – Expires 5-31-2020 - both Admitted and non-admitted
    • No cancellations or non-renewal due to non-payment
    • Premium payment grace period for a 60 day period (3/19/2020 - 5/18/2020)

  • Louisiana – Expired 5-12-2020 - both Admitted and non -admitted
    • Suspension of Cancellation or Non-renewals for any reason
    • Any cancellation or non-renewals issued since 3-12-2020 is null and void, but will be reissued after expiration of Emergency rule.
    • All policies subject to renewal to renewal must continue in full force and effect ate previously established premium until rule expires.

  • Maine – No Expiration - both Admitted and non-admitted
    • Insurers must make all accommodations for late payments or other issues that are beyond the consumer’s control

  • Maryland – No Expiration - both Admitted and non-admitted
    • Insurers are encouraged to make reasonable accommodations so individuals/companies do not lose coverage do to non-payment.

  • Massachusetts – No Expiration - both Admitted and non-admitted
    • Provide reasonable payment accommodations
    • Cancellations & non-renewals only after exhausting efforts with policyholder to continue coverage

  • Michigan - Expires 90 days after State of emergency is over - both Admitted and non-admitted
    • 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
    • Provide reasonable payment accommodations
    • 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.

  • Mississippi - Expired 5-23-2020 - both Admitted and non-admitted
    • DOI has issued a 60 day moratorium of cancellation/non-renewal of policies for non-payment of premium

  • Missouri – Expires 6-15-2020 - both Admitted and non-admitted
    • Insurers are strongly encourage not to cancel, non-renew, or terminate coverage while this Bulletin is in effect. The DOI is not requiring insurers to waive any premiums or other considerations owed during this period of time. The DOI anticipates that a failure to pay premiums or remit consideration may be subject to a retroactive cancellation.

  • Montana – No Expiration - both Admitted and non-admitted
    • Provide reasonable payment accommodations

  • New Jersey – Expires 7-8-2020 - both Admitted and non-admitted
    • Encourage relaxing due dates for premium, extending grace periods, waiving late fees and penalties, allowing forbearance with regard to the cancellation/nonrenewal of policies, allowing payment plans for premium payments.
    • Carriers shall not cancel during the emergency grace period any policy for non-payment for a period of at least 90 days.
    • Claims should be paid without regard to prior non-payment of premium
    • 90 day grace period for premium payments for insured’s experiencing financial hardship: (Admitted only)
      • A policyholder may elect the grace period retroactively to April 1st or opt to begin on May 1st
      • During the grace period Insurer’s should not cancel any policy for non-payment
      • Insurer should waive late fees and not report late payments to credit rating agencies
      • Allow premiums due but not paid during the 90-day period to be paid over the remainder of the current policy term or up to 12 months in up to 12 equal installments, whichever is longer, except that an insurer may permit a longer repayment period
      • Ensure that late payments during the 90-day period are not considered in any future premium calculations at any time
    • This grace period is intended to be applied to all installment payments, including renewal down payments, provided that the insured provides notice to the insurer that the insured wishes to continue coverage. It is not intended to change the terms of the issued policy or be considered a forgiveness of the premium. Rather, it is intended that the insurer grant the policy.

  • New Mexico – Expires 30 days after the State of Emergency is over - both Admitted and non-admitted
    • The State is requesting Insurers refrain from cancelling or non-renewing policies negatively impacted by the disruption due to non-payment , or at a minimum, provide extended grace periods.

  • New York – No Expiration - both Admitted and non-admitted
    • Offering payment accommodations, such as allowing deferred payments at no cost, extending payment due date, or waiving late fees
    • Working with consumers to avoid cancellation of policies for :
      • Failure to pay premium on time
      • Discovery of acts or omissions that may have increased the hazard insured against
    • 60 day moratorium on cancelling . non-renewing or conditionally renewing any policy issued to and individual or small business - Expires 5-28-2020
      • Small business shall mean any business that is resident in this State, is independently owned and operated and employs 100 or fewer individuals.
    • ELANY confirmed with the NY DFS that the moratorium premium payment and notice requirements DO NOT apply to Commercial Excess lines policies and policyholders.

  • North Carolina – Expires 5-27-2020 - both Admitted and non-admitted
    • Provide reasonable payment accommodations
    • Cancellations & non-renewals only after exhausting efforts with policyholder to continue coverage
    • Extend grace period for premium payments time requirements
      • This deferral period shall be 30 days from the last day the premium may be made under terms of policy
    • The new expiration Extends the deferral period another 30 days
      • The automatic deferral on policy cancellations does extend to underwriting reasons – there are no exceptions
      • Non-renewals issued after the date of Order may not be transmitted to policyholder and should be deferred until after the expiration of the Extended order

  • North Dakota – No Expiration - both Admitted and non-admitted
    • Provide reasonable premium payment accommodations
      • Extensions of payments
      • Premium grace periods
      • Waiver of fees

  • Ohio - No Expiration - both Admitted and non-admitted
    • 60 day grace period to pay premiums so policies are not cancelled

  • Oklahoma - Until State Emergency is no longer in effect - both Admitted and non-admitted
    • P&C carriers should extend their applicable grace period for non-payment by an additional 45 days

  • Oregon - Expired 5-23-2020 - both Admitted and non-admitted
    • Suspend all cancellations and non-renewals for active insurance policies unless at Insured’s request
    • For Insurance Policies not yet cancelled or non-renewed as of 3-25-20 but for which a notice of cancellation or non-renewal has been issued, Insurers must with draw the notice and provide insureds with a notice that cancellation or non-renewal is suspended until this order is no longer in effect.
    • If a policy is extended beyond normal date of cancellation or non-renewal as a result of this order, the premium for extension is determined by insurer in accordance with terms of the policy. Insurers may continue to bill Insureds for this premium amount, but may not cancel or non-renew coverage due to non-payment of extended premium until order is no longer in effect.
    • Institute a grace period for premium payments
    • Note this is the first State that has a moratorium on any type of cancellation or non-renewal

  • Pennsylvania - No Expiration - both Admitted and non-admitted
    • Insurers should consider, relaxing due dates, extending grace periods, waiving late fees and allowing payment plans.

  • Rhode Island - No Expiration - both Admitted and non-admitted
    • Provide reasonable payment accommodations

  • South Carolina - No Expiration - both Admitted and non-admitted
    • Extend grace period for premium payments

  • Tennessee – No Expiration - both Admitted and non-admitted
    • Carriers should work with policy holders who have concerns about their ability to timely pay premium to ensure the policy holders can maintain their existing insurance coverqage.

  • Texas – No Expiration - both Admitted and non-admitted
    • Provide reasonable premium payment accommodations such as grace periods, temporary suspension of payment and payment plan options.
    • The term “suspension” is not intended to mean forgiveness of premium
    • Automatic bank drafts for premium payment may continue according to the carrier’s written agreement with policy holder unless policyholder notifies carrier of specific hardship

  • Vermont – Until Further Notice - both Admitted and non-admitted
    • Carrier must not issue Cancellation or nonrenewal for reasons stemming from COVID -19
    • Insurers should be flexible with respect to allowing alternative payment arrangements.

  • Virginia – No Expiration - both Admitted and non-admitted
    • Provide reasonable payment accommodations
      • Extend grace periods
      • Waive fees and penalties
    • Cancellation & non-renewal only after exhausting efforts to continue coverage

  • Washington - Expired 5-9-2020 - both Admitted and non-admitted
    • Shall provide grace periods for nonpayment of premium and waive all fees
    • Between March 25th and May 9th No P&C carrier shall cancel a policy for nonpayment unless specifically directed by insured.

  • West Virginia - In effect until further notice - both Admitted and non-admitted
    • No cancellation or non-renewal notices allowed if stemming from the COVID -19 pandemic
    • Insurers should be flexible with alternative payment arrangements

  • Wisconsin - No Expiration - both Admitted and non-admitted
    • Provide reasonable payment accommodations

For More Information Contact:

John Torvi at Tel: 1-800-336-5422 ext. 117 • Fax: 800 344 5422 • E-mail: