COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (June 30, 2020)

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

New York:  On June 28, the New York State Department of Financial Services issued a consolidated rulemaking, which implements the Governor’s Executive Order Number 202 by providing certain relief to policyholders, contract holders, and insureds (collectively, “insureds”) who can demonstrate financial hardship as a result of the COVID-19 pandemic, by: (1) amending 11 NYCRR section 185.7(m)(4) and 11 NYCRR section 187.6(f)(4) to provide that premium remitted by a creditor will be assumed to provide coverage under a credit life or credit unemployment insurance policy for those insured debtors whose payments are not more than three months overdue, regardless of whether the debtor has paid a charge for such three months’ coverage; (2) adding a new Part 229 to 11 NYCRR to provide certain protections to insureds who do not make a timely premium payment to a life insurer, property/casualty insurer, or fraternal benefit society, and (3) adding a new Section 405.6 to 3 NYCRR to prohibit any PFA from canceling an insurance policy due to an insured’s failure to make a timely installment payments.

West Virginia:  On June 30, the West Virginia Insurance Commissioner issued Emergency Order 20-06a, clarifying the circumstances under which individuals engaged in the insurance business may engage in certain  activities outside of their residences. The Emergency Order clarifies the conditions under which such activity may include solicitation of new business. Insurance companies, underwriters, agents (producers), brokers, and related insurance claims and agency services, their employees or representatives are prohibited from engaging in door-to-door/in-home solicitation of new insurance business or other door-to-door/in-home insurance activity or transactions during this insurance emergency and/or State of Emergency unless all of the following conditions exist:

(1) they are engaging in the door-to-door/in-home activity at the prior telephonic, online, U. S. Mail or electronic mail request by, or authorization of, the customer/client, policyholder or other insured, and such activity is not a no-notice visit or “cold call” at the residence of the customer/client, policyholder or other insured;

(2) such policy sale, servicing or other essential transaction cannot be accomplished electronically or otherwise remotely; and,

(3) the door-to-door/in-home transaction is to be done only with the proper use of personal protective equipment and/or appropriate social/physical distancing.

Health Insurance

Arizona:  On June 25, Arizona issued Executive Order 2020-42, renewing and extending Executive Order 2020-27 without change until Dec. 31, 2020.  The Good Samaritan Order, Executive Order 2020-27, provides immunity from civil liability for licensed health professionals, volunteer health professionals, emergency medical care technicians, healthcare institutions, and entities operating as a temporary healthcare facility for providing services related to COVID-19.  The Order was set to expire June 30.

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