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    Delaware Orders Insurers To Cease Cancellation Or Non-renewal Due To Nonpayment During Delaware State Of Emergency

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    On March 24th, Governor John Carney, in consultation with the Delaware Department of Insurance, issued a sixth modification to the state of emergency requiring that insurers cease cancellations or non-renewals of insurance policies due to nonpayment of premium duration the declared Delaware State of Emergency for those residents and businessowners experiencing a loss of income. Previously, Insurance Commissioner Navarro had only recommended insurers take these action.

    The modified order states, “[n]o insurer may, without a court order, lapse, terminate or cause to be forfeited a covered insurance policy because a covered policyholder does not pay a premium or interest or indebtedness on a premium under the policy that is due during the pendency of the declared state of emergency.”  Insurance carriers will freeze cancellations and non-renewal of policies that might have otherwise occurred due to delays in payments through the duration of the state of emergency for individuals who have been laid off or fired due to the state of emergency or organizations who have had to close or significantly reduce business.  This order applies to carriers issuing policies for health, life, disability, property, auto, and commercial/business insurance.  The order is effective as of 8:00 AM on March 25th.

    A copy of the order can be found here.

    Locke Lord will continue to monitor these events.

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    The post Delaware Orders Insurers To Cease Cancellation Or Non-renewal Due To Nonpayment During Delaware State Of Emergency appeared first on Insurance & Reinsurance.

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