Property and Casualty, Life, and Long Term Care Insurance Premium Payments During State of Emergency

BULLETIN 2020-12 PROPERTY AND CASUALTY, LIFE, AND LONG TERM CARE INSURANCE PREMIUM PAYMENTS DURING STATE OF EMERGENCY Effective October 2, 2020 Bulletin 2020-11, also issued today, rescinded Bulletin 2020-07. This bulletin replaces rescinded Bulletin 2020-07. This bulletin pertains to all insurers (“Insurers”) providing property and casualty, life, and long term care insurance policies (“policies”) in the State of Ohio. The purpose of this bulletin is to encourage Insurers to provide flexibility to their insureds during the state of emergency. On March 9, 2020, Governor Mike DeWine declared a state of emergency in Ohio to protect the well-being of Ohioans from the dangerous effects of COVID-19, and directed state agencies to develop and implement procedures consistent with recommendations from the Department of Health designed to prevent or alleviate the public health threat. (See Executive Order 2020-01D.) The Superintendent recognizes that some insured Ohioans may experience financial difficulties during this state of emergency, and may have difficulty timely paying their insurance premiums or submitting documentation to support a claim. Accordingly, the Superintendent encourages Insurers to provide their insureds with a grace period to pay insurance premiums. This means Insurers may offer payment accommodations, such as allowing consumers to defer payments at no cost, extending payment due dates, or waiving late or reinstatement fees, where consumers are unable to make timely payments of premium or fees due to COVID-19-related disruptions. The Superintendent is not requiring Insurers to waive any premiums or other consideration owed on any policy or contract during this period of time. Further, the Superintendent anticipates that a failure to pay premiums or remit consideration by the end of the grace period may subject the policy to a retroactive cancellation, in accordance with the policy terms. Further, the Superintendent encourages Insurers to provide a grace period as to any policy provision that imposes a time limit on an insured or claimant to perform any act, Mike DeWine, Governor Jon Husted, Lt. Governor Tynesia Dorsey, Interim Director including the submission of information or funds, with respect to a contract for insurance. This means Insurers may extend time limits by a certain amount of calendar days from the last day allowed under the terms of the contract. Nothing in this bulletin should be construed as prohibiting an Insurer from cancelling or nonrenewing a policy for any lawful reason. This Bulletin expires upon the expiration of the state of emergency declared by Governor DeWine on March 9, 2020. Superintendent of Insurance Tynesia Dorsey Interim Director