Insurers are required to delay amassing premium on life insurance coverage and annuity contracts written in New York for 90 days beneath an emergency regulation adopted right now.
The directive covers shoppers experiencing monetary hardship as a result of COVID-19 pandemic, the New York Division of Monetary Companies mentioned in a information launch.
Shoppers and small companies experiencing hardship might defer paying premiums for property and casualty insurance coverage for 60 days. Premium finance companies are required to supply the identical aid as insurers.
“Authorities and business should proceed to work collectively to assist those that are struggling financially as a result of COVID-19 pandemic,” mentioned DFS Superintendent Linda A. Lacewell. “We’re taking motion to offer New Yorkers experiencing monetary hardship throughout this tough interval additional time to pay their insurance coverage premiums and make different policy-related choices.”
As well as, DFS introduced that uninsured New Yorkers can receive medical insurance by means of New York State’s Well being Plan Market beneath a particular enrollment interval from April 1-15.
Trade On Board
The 134 members of the Life Insurance coverage Council of New York (LICONY), which characterize over 80% of the life insurance coverage business in New York, agreed to increase to 90 days the grace interval for the fee of premiums and charges, and for the train of policyholder or certificates holder rights, beneath life insurance coverage insurance policies and annuity contracts in circumstances of economic hardship as a result of COVID-19 pandemic.
The emergency regulation adopted by DFS ensures a degree taking part in discipline by directing all regulated issuers of life insurance coverage and annuity contracts within the state to offer the identical aid, the discharge mentioned.
“The members of LICONY are deeply involved in regards to the influence of the present financial circumstances on their clients,” mentioned LICONY President and CEO Mary A. Griffin. “Our members are happy with our partnership with Governor Cuomo and Superintendent Lacewell throughout these difficult instances and we stand prepared to help our clients by offering a 90-day grace interval for premium funds to anybody encountering monetary hardship because of COVID-19.”
DFS requires life insurance coverage and annuity contract issuers to supply the next aid to policyholder or certificates holder (shopper) who can show monetary hardship as a consequence of COVID-19:
• Lengthen to 90 days the grace interval for the fee of premiums and charges to make sure that the policyholder’s or certificates holder’s life insurance coverage coverage or certificates doesn’t lapse for non-payment throughout the 90-day interval;
• Waive late fee charges in any other case due, and never report late funds to credit standing companies, throughout the 90-day interval;
• Enable premiums due however not paid throughout the 90-day interval to be paid over the course of the next 12 months in 12 equal month-to-month installments; and
• Lengthen to 90 days the interval to train policyholder and contract holder rights and advantages beneath life insurance coverage and annuity contracts.
Property And Casualty Insurance coverage
The emergency regulation additionally directs P&C insurers to supply flexibility to shoppers experiencing monetary hardship attributable to the pandemic by extending to 60 days the grace interval for the fee of premiums and charges beneath auto, owners and renters insurance coverage insurance policies, amongst others.
The identical aid might be out there for companies with 100 staff or much less, independently owned and operated and resident in New York, beneath auto, owners, renters, employees’ compensation, medical malpractice, livery and taxi, and sure different traces of economic insurance coverage.
DFS requires P&C insurers to supply the next aid to shoppers and small companies who can show monetary hardship as a consequence of COVID-19:
• Present a 60-day grace interval for the cancellation, conditional renewal or non-renewal of a policyholder’s insurance coverage coverage;
• Enable premiums due however not paid throughout the 60-day interval to be paid over the course of the next 12 months in 12 equal month-to-month installments; and
• Waive any late fee charges, and never report late funds to credit standing companies, throughout the 60-day interval.
Premium Finance Businesses
The emergency regulation additionally requires premium finance companies to supply the identical aid to these shoppers and companies who’ve financed the funds of their premiums, topic to security and soundness concerns of the premium finance companies.
DFS requires premium finance companies to supply the next aid to shoppers and companies who can show monetary hardship as a consequence of COVID-19:
• Present a 90-day grace interval (for all times insurance coverage insurance policies) and a 60-day grace interval (for property and casualty insurance policies) for the fee of installment funds beneath the premium financing settlement;
• Enable installment funds due however not paid throughout the relevant grace interval to be paid over the course of the next 12 months in 12 equal month-to-month installments; and
• Waive any late fee charges, and never report late funds to credit standing companies, throughout the relevant grace interval.
Well being Insurance coverage Particular Enrollment Interval
DFS additionally introduced that uninsured people will be capable of receive medical insurance protection by means of the NY State of Well being, New York’s Well being Plan Market, beneath a particular enrollment interval from April 1-15. To this point, 2,244 New Yorkers have already utilized.
New Yorkers who’ve misplaced their jobs as a result of pandemic might enroll within the market at any time inside 60 days from their lack of protection, or could also be eligible to enroll in different NY State of Well being packages – Medicaid, low-premium Important Plan and Baby Well being Plus.
New Yorkers can apply for protection by means of NY State of Well being on-line at nystateofhealth.ny.gov, by telephone at 855-355-5777, or with the assistance of enrollment assistors.
The emergency regulation will be discovered at Half 119 of Title three of the Official Compilation of Codes, Guidelines and Laws of the State of New York. Learn a duplicate of the emergency regulation.