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 (NAIC): On July 1, according to APCIA, the NAIC’s Financial Condition (E) Committee voted to reconsider interim accounting guidance for relief payments that insurers have provided to policyholders as a result of the pandemic. The Committee’s subsidiary task force adopted guidance last week that would have required companies to report these amounts as adjustments to premium. However, the Committee sent this proposal back to the task force to be amended to allow companies the flexibility to report these amounts as an expense.
New York: On July 2, the New York Department of Financial Services (“DFS”) issued Supplement No. 2 to Insurance Circular Letter No. 9 (2020) to all producers licensed by the DFS. The supplement addresses Coronavirus and insurance producer licensing requirements. Due to the continued obstacles placed on producers by coronavirus, the DFS has extended the relief provided in Insurance Circular Letter No. 9 (2020) for an additional 30 days, through August 7, 2020. At the end of this 30-day period, all licenses that would have expired but for this extension will automatically expire unless the producer has submitted a license renewal application, including completion of all necessary continuing education credits, before that date.
Tennessee: On July 1, Governor Lee signed Executive Order No. 53 extending COVID-19 civil liability protection to health care providers. The Order is effective until July 31.
Property and Casualty Insurance
Maryland: On July 2, the Maryland Insurance Administration issued Bulletin 20-28, to all property and casualty insurers and producers, regarding the cancellation of property and casualty insurance policies due to non-payment of premium during the COVID-19 state of emergency. The Administration, recognizing that insurers cannot provide coverage without collecting premium for an indefinite period of time, has not, and does not (at this time) plan to issue orders compelling property and casualty insurers to continue to maintain policies in force indefinitely without payment of premium. However, the Administration plans to monitor the impact of COVID-19 on policy cancellations, as well as the accommodations that have been and are being made by insurers to mitigate cancellations. As such, the Administration will be requiring each property and casualty insurer holding a certificate of authority in the Maryland, as well as the Maryland Automobile Insurance Fund and the Chesapeake Employers Insurance Company, to make an informational filing in SERFF with the details of its COVID-19 response efforts. The parameters of the informational filing will be provided in a later bulletin. Bulletin 20-28 also provides guidance with respect to the resumption of non-payment cancellations.
Washington: On July 2, Commissioner Kreidler released the third extension of Emergency Order 20-01, now extended until August 2, 2020. The Order instructs health insurers to waive copays and deductibles for any consumer requiring testing for coronavirus (COVID-19), among other COVID related insurance measures.
The post COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (July 2, 2020) appeared first on Insurance & Reinsurance.
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