Premium Receivables over 90 days during the COVID-19 State of Emergency

BULLETIN NO. 20-14 DATE: March 26, 2020 TO: Presidents, Insurers Domiciled in Maryland RE: Premium Receivables over 90 days during the COVID-19 State of Emergency On March 5, 2020, Governor Hogan declared a State of Emergency for the entire State as a result of the COVID-19 virus. On March 20, 2020, the Maryland Insurance Administration issued Bulletin 20-10, encouraging 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. Per that bulletin, 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. Maryland-domiciled insurers that provide premium grace periods to policyholders may request a permitted accounting practice to waive the Statutory Accounting Principle that requires an insurer to non-admit premium receivable assets over 90 days past due. The permitted accounting practice will be effective for the year 2020. The number of days past due that will be allowed as an admitted asset will be based on an insurer’s grace period. For example, an insurer that allows a 30-day grace period for all policies may request a permitted accounting practice to admit receivables up to 120 days past due. The request for a permitted accounting practice should include sufficient detail to support the request. Please email requests for a permitted accounting practice to: holdingcompanyfiling.mia@maryland.gov. Questions regarding this bulletin can be emailed to Lynn Beckner, Chief Financial Analyst, at Lynn.Beckner@maryland.gov. AL REDMER, JR. Commissioner By: Vincent P. O’Grady Associate Commissioner Examination and Auditing AL REDMER, JR. Commissioner JAY COON Deputy Commissioner LARRY HOGAN Governor BOYD K. RUTHEFORD Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 410-468-2007 Fax: 410-468-2020 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov signature on original Special Note: The Maryland Insurance Administration remains fully operational during the COVID- 19 emergency. If you would like to file an insurance complaint, please use our online portal: https://enterprise.insurance.maryland.gov/consumer/ConsumerPortalWelcomePage.aspx About the Maryland Insurance Administration The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin, Twitter at @MD_Insurance, LinkedIn at www.linkedin.com/company/maryland-insurance-administration or Instagram at @marylandinsuranceadmin. ###