Flexibility in Insurance during the COVID-19 emergency

Department of Business Regulation Insurance Division 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 Insurance Bulletin Number 2020-4 Flexibility in Insurance during the COVID-19 emergency Governor Gina Raimondo has issued a series of Executive Orders declaring a state of emergency in Rhode Island due to the COVID-19 virus. The emergency is creating widespread interruptions in the economy and loss of income for many Rhode Island residents and businesses. This bulletin is intended to identify the ways in which insurers can contribute to the rebuilding that will be necessary as a result of this emergency. The Rhode Island Insurance Division requests that insurers writing business in our state take the following steps to preserve access to insurance coverage during this emergency • Provide as much flexibility as possible to allow insureds to maintain their existing coverage by implementing and extending grace periods for premium payments, allowing payment plans for premium payments and instituting whatever other measures necessary to assist insureds in avoiding or delaying cancellation or a lapse of insurance coverage. • Institute alternative methods of payment for those insureds whose normal method of payment is affected by this emergency. For example, insurers could provide for electronic premium payments as an alternative to in-person payments. • Insurers should institute additional flexibility in the form of waivers of late, insufficient funds and installment fees and penalties, extension of billing due dates and premium grace periods. • Insurers should explore ways to streamline or delay the submission of administrative paperwork that may jeopardize the maintenance and/or issuance of coverage. • Insurer should consider filings to alter policies to reflect the anticipated effects of the emergency. These would include, but are not limited to, reduction in premiums for active policies and amendment to coverages to reflect changes in anticipated activities as a result of the emergency such as removal of the exclusion for deliveries in personal automobile policies. • Insurers should explore ways to make claims processes easier and more responsive such as electronic delivery of claims payments and remote adjustment of damages. 2 None of these requests are intended to change the terms of in force insurance policies or be considered a forgiveness of premium. It is the hope of our Department that the implementation of these steps will assist with the recovery of Rhode Island individuals and businesses from the current emergency. If you have any questions regarding this bulletin or any other matters, please send an email to dbr.insurance@dbr.ri.gov. Elizabeth Kelleher Dwyer Superintendent of Insurance March 25, 2020