On April 15, 2020, the Texas Department of Insurance (TDI) issued a bulletin encouraging insurers to conduct midterm premium audits of commercial policies where premiums may need to be adjusted as a result of reduced business operations due to the impact of the COVID-19 pandemic. TDI has advised it expects insurers to work with insureds whose commercial insurance premiums are measured based on auditable exposures, such as sales or payroll.
TDI encourages specific audit practices for insurers related to commercial policyholders with variable premiums likely impacted by the COVID 19 outbreak:
Midterm audits do not replace final audits permitted or required under the subject policies.
A copy of the TDI Commissioners’ Bulletin #B-0020-20 is found at https://www.tdi.texas.gov/bulletins/2020/B-0020-20.html.
Visit our COVID-19 Resource Center often for up-to-date information to help you stay informed of the legal issues related to COVID-19.
The post TDI Encourages Midterm Commercial Policy Audits in Response to COVID-19 appeared first on Texas Regulatory Update.
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