Premium Payment Grace Period and Continuity of Coverage for Federal Employees Impacted by the Government Shutdown

♦INSURANCE.DELAWARE.GOV♦ 1351 W. NORTH ST., SUITE 101, DOVER, DELAWARE 19904 (302) 674-7300 DOVER♦ (302) 259-7554 GEORGETOWN♦ (302) 577-5280 WILMINGTON TRINIDAD NAVARRO COMMISSIONER STATE OF DELAWARE DEPARTMENT OF INSURANCE DOMESTIC AND FOREIGN INSURERS BULLETIN NO. 160 TO: ALL INSURANCE CARRIERS DOING BUSINESS IN DELAWARE RE: PREMIUM PAYMENT GRACE PERIOD AND CONTINUITY OF COVERAGE FOR FEDERAL EMPLOYEES IMPACTED BY THE GOVERNMENT SHUTDOWN DATED: October ____, 2025 This Bulletin is issued in response to the federal government shutdown that began on October 1, 2025. The Delaware Department of Insurance (Department) recognizes the financial hardship this event may cause for federal employees and contractors residing in Delaware. While back pay may eventually be issued, the immediate impact on household budgets can be significant. Accordingly, the Department urges all carriers to implement the following temporary accommodations to protect affected policyholders from lapses in coverage due to non-payment of premiums: Grace Periods: • Provide a minimum 60-day grace period for premium payments due during the shutdown. Longer grace periods are encouraged where feasible. Moratorium on Cancellations and Nonrenewals: • Refrain from canceling or nonrenewing policies solely due to non-payment of premium during the shutdown period. Flexible payment options are encouraged. Waiver of Late Fees and Penalties: • Suspend late fees, penalties, and interest charges related to delayed premium payments during the shutdown. Flexible Documentation Requirements: • Accept reasonable documentation from policyholders demonstrating their status as impacted federal employees or contractors, such as a furlough notice or pay stub. Time-Period Extension for Repairs: • Provide a minimum 30-day extension for property repairs when a policyholder notifies the carrier that repairs cannot be completed within the timeframe specified in the policy. Longer extensions are encouraged where appropriate. Applicability & Duration 23 NOTE: This Bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties, or privileges, nor is it intended to provide legal advice. Readers should consult applicable statutes and rules and contact the Delaware Department of Insurance if additional information is needed. This Bulletin applies to all admitted and non-admitted carriers providing insurance coverage in Delaware, including but not limited to life, health, auto, homeowners, property, casualty, and renters insurance. Carriers are encouraged to implement these accommodations uniformly and in good faith to assist consumers experiencing circumstances beyond their control. These accommodations should remain in effect for the duration of the federal shutdown and for an additional 30 days thereafter to allow for recovery and resolution of delayed compensation. Federal employees in Delaware experiencing financial hardship due to the government shutdown, and who have concerns about potential insurance coverage disruptions, are encouraged to contact the Department’s Consumer Services Division at 302-674-7300 or email consumer@delaware.gov for assistance. Questions about this Bulletin should be emailed to compliance@delaware.gov. This Bulletin shall be effective immediately and shall remain in effect unless withdrawn or superseded by subsequent law, regulation or bulletin. ____________________________________ Trinidad Navarro Delaware Insurance Commissioner