With the order of 100% non-essential workers to stay home, we understand that concerns regarding payment difficulties are circulating. Governor Andrew M. Cuomo recently issued Executive Order 202.13 that mandates insurers to implement premium relief for policyholders financially impacted by COVID-19.
Here are some of the key points from the Executive Order:
- Insurance producers that services an in-force life insurance policy, annuity contract, or fraternal benefit society certificate or who procured a property/casualty insurance policy for the policyholder or contract holder must send these notices to their clients within ten business days following the promulgation of 11 § NYCRR 229 and 3 NYCRR § 405.6.
- Insurance Carriers will assist by suspending cancellation for non-payment and allowing premiums to be paid over a 12-month period.
- For financed premiums of a Property and Casualty policy, 60 days will be given to make payment before the cancellation is requested by the finance company.
- In order to take advantage of these extensions, the insurer or finance company requires the policyholder’s written statement of financial hardship as a result of COVID-19.
- Also applies to small business that are a resident of this state, is independently owned and operated, and employs 100 or fewer employees.
The New York State Department of Financial Services offers a Model Producer Notice for Certain Property/Casualty Policies to assist in distributing information to your clients.
If you are experience any issues with payments, we are available by phone at (212) 941-8919. Please contact us for assistance. Our Insurance Partners have been flexible with payment extensions and mid-term policy changes. As a client of David J. Louie, Inc., our Accounting Department will work with you and the insurance carriers, whom we have great relationships with, to develop a solution to prevent the cancellation of your policy. Our service teams will always do our best to merit your trust and confidence.