COVID-19: COMMERCIAL PREMIUM ADJUSTMENTS AND MIDTERM PREMIUM AUDITS

ST ATE OF NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE SUPERINTENDENT OF INSURANCE Russell Toal DEPUTY SUPERINTENDENT Robert E. Doucette, Jr. OrTIC} OT NEW MEXICO iuviti+iisiotii+ C)T IN!luRANC( BULLETIN 2020-011 APRIL 29, 2020 yrUt'.tt J4 TO: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, COUNTY MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYD'S PLANS, OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN NEW MEXICO, INCLUDING WORKERS' COMPENSATION mSURANCE; AGENTS AND REPRESENT ATIVES; PREMIUM FINANCE COMPANIES; AND OTHER RELEV ANT PARTIES. RE: COVID-19: COMMERCIAL PREMIUM ADJUSTMENTS AND MIDTERM PREMIUM AUDITS Governor Miclielle Lujan Grishai'n has declared a public health emergency in response to the COVID-19 pandemic. The impact of the COVID-19 outbreak has been significant on many New Mexico businesses, causing them to reduce operating hours, convert sales arrangements, decrease or limit travel, reduce payroll and take other steps to survive through the social distancing rules imposed to control the pandemic. Tlie New Mexico Superintendent of Insurance ("the Superintendent") expects insurers to work with coinmercial policyholders that have reduced operations due to tlie COVID-19 outbreak. For policies calculated using an auditable exposure, such as payroll or sales, which may have changed as a result of the COVID-19 outbreak, the Superintendent encourages insurers to: * Conduct midten'n premium audits if requested by policyholders. Many policies permit midterin audits without an onsite visit. Consider any reduced risk for businesses that change operations or elect to continue paying employees when they are not working, and for workers' compensation carriers who are members ofNCCI, to follow forthcomingNCCI guidance on this and other COVID-19 issues. Allow policyholders to self-audit and report changes in the auditable exposure the insurer used to calculate the premium. Main Office: 1120 Paseo de Peralta, Room 428, Santa Fe, NM 87501 Satellite Office: 6200 Uptown Blvd NE, Suite 100, Albuquerque, NM 87110 Main Phone: (505) 827-4601 i Satellite Phone: (505) 322-2186 i Toll Free: (855) 4 - ASK - OSI www.osi.state.nm.us [3 U L t E T I N 2 0 2 0 - O l ] Page2 * Make such adjustments and take sucli actions as are necessary to reduce premiums appropriately given the new business realities. The Superintendent recognizes that a midtertn audit, self-audit, or other premium adjustment does not replace a final audit permitted or required by the policy. Thank you for your cooperation with tl'iis Bulletin. Tlie Superintendent reserves the riglit to take such actions as may be appropriate to ensure compliance. Any person aggrieved by tliis Bulletin may request a hearing before the Superintendent of Insurance in accordance with Section 59A-4-15 NMSA 1978. If you have questions regarding this Bulletin, please contact Anna Krylova at anna.krylova@state.nm.us. ISSUED this 29I'l day of April, 2020. TOAL Supe tendent of Insurance Main Office: 1120 Paseo de Peralta, Room 428, Santa Fe, NM 87501 Satellite Office: 6200 Uptown Blvd NE, Suite 100, Albuquerque, NM 87110 Main Phone: (505) 827-4601 i Satellite Phone: (505) 322-2186 i Toll Free: (855) 4 - ASK - OSI www.osi.state.nin.us