X
    X
    X
    X

    COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (May 6, 2020)

    Publications

    In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling regulatory updates to provide clients easy access to information during this unprecedented time. If you have any questions on the subject matter below, do not hesitate to reach out. The information below relates to state and federal bulletins, emergency orders, pending/enacted legislation, and other related actions taken in response to the COVID-19 pandemic.

    All Lines of Insurance

    All States: On May 5, the NAIC’s Statutory Accounting Principles Working Group released five additional proposals related to the COVID-19 pandemic for comment by May 14. One such proposal, INT 20-08T: COVID-19 Premium Refunds, Rate Reductions and Policyholder Dividends, provides accounting guidance for various forms of premium relief that insurers have provided to policyholders. The other proposals are:

    • INT 20-05T: Investment Income Due and Accrued;
    • INT 20-06T: Participation in the 2020 TALF (Term Asset-Backed Securities Loan Facility) Program;
    • INT 20-07T: Troubled Debt Restructuring of Certain Debt Instruments Due to COVID-19; and
    • Ref #2020-14: Assessment of OTTI (Other Than Temporary Impairment) Based on Original Contract Terms.

    Illinois: On May 5, the Department of Insurance issued Bulletin 2020-12, to all insurers licensed or authorized to transact insurance business in Illinois, requesting that insurers maintain the provisions outlined in Company Bulletin 2020-09, through May 29. Company Bulletin 2020-09 requested that insurers implement protective measures and provide accommodations to consumers during the COVID-19 pandemic. Protective measures and accommodations include, among other things, a moratorium on cancellations and nonrenewal, and postponement of cancellation and nonrenewal hearings.

    Property and Casualty Insurance

    Colorado: On May 5, the Colorado Division of Insurance issued Bulletin No. B-5.41 related to on-site property damage inspections, replacement vehicles and additional living expense (ALE) requirements due to COVID-19. The Bulletin directs insurers to accept, to the extent possible, photos and videos and other reasonable digital data to document a claim for damaged property submitted to the insurer by a claimant. Additionally, the Bulletin directs insurers to consider additional days of third-party motor vehicle replacement coverage until repairs are complete to the extent policy limits are available, given that repairs may be delayed. The Division also directs insurers to provide additional days of first-party rental vehicle coverage until repairs are completed. Finally, the Bulletin discusses additionally living expenses/loss of rents, and replacement cost coverages.

    Louisiana: On May 5, Commissioner Donelon issued a letter to commercial auto insurers, asking insurers to consider offering premium relief to their commercial auto insurance customers due to the impact of the COVID-19. The letter urges insurers to consider returning a percentage of premium to Louisiana policyholders whose businesses have been impacted by the stay at home orders put in place as a result of the COVID-19 health crisis. According to the Department of Insurance press release, the Commissioner sent a letter to major commercial auto insurers in Louisiana, asking them to review their 90-day claims history and to consider returning a percentage of the commercial auto premium to customers, as is currently being done by many private passenger auto insurers.

    Massachusetts: On May 5, Massachusetts Attorney General issued a press release announcing that they had written the Insurance Commissioner requesting immediate steps be taken to ensure that Massachusetts businesses pay fair workers’ compensation insurance premiums that reflect the businesses’ decreased exposure to workplace injuries during the COVID-19 pandemic.

    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 COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (May 6, 2020) appeared first on Insurance & Reinsurance.

    Explore Additional Topics

    Disclaimer

    Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. Any information you send to Locke Lord LLP through this website is on a non-confidential and non-privileged basis. Therefore, do not send or include any information in your email that you consider to be confidential or privileged.