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
Alabama: On April 28, the Alabama Department of Insurance issued an FAQ on business interruption insurance affecting Alabama small businesses.
D.C.: On April 27, the District of Columbia Department of Insurance, Securities and Banking (DISB) issued Commissioner’s Order 03-2020, applicable to all insurance companies authorized to conduct business in DC and to insurance premium finance companies, prohibiting termination of insurance policies due to non-payment of premium, requiring reasonable accommodations to policyholders, requiring insurers to allow for self-audits and premium adjustments, allowing for expedited review of form and rate filings, and requiring a waiver or suspension of the commercial or livery use exclusions.
Kansas: On April 27, the Kansas Department of Insurance (DOI) updated their FAQ section related to COVID-19. The FAQ update includes, among other things, information on workers’ compensation premium adjustments, the use of SERFF by automobile insurers, and the extension of the suspension of in-person operations at the DOI from April 6 to May 3.
New Mexico: On April 23, Governor Grisham issued Executive Order 2020-025, directing all state executive agencies to adopt a presumption that state employees and certain volunteers are eligible for workers’ compensation coverage under the New Mexico Occupational Disease Disablement Law if they contract COVID-19 within two weeks of caring for a COVID-19 patient or working in a facility that provides care to these patients. Additionally, the Order encourages local government employers and insurers to adopt the workers’ compensation presumption of coverage.
Oklahoma: On April 27, the Oklahoma Department of Insurance issued Bulletin No. PC 2020-03, authorizing admitted insurers who write commercial insurance to conduct mid-term premium audits of policies whose premiums need to be adjusted. The Bulletin provides an insured the right to demand a mid-term self-audit. If an insured’s self-audit establishes that the presumptive premium charged at the initiation of the policy is in excess of what the premium would be based on the current rating variables, the insurer must adjust the premium immediately but in no event less than 10 days after the audit. The insurer should refund a premium overpayment to the policyholder within 10 days of the self-audit. Additionally, any insurer that has been required to allow its insured to conduct a mid-term self-audit retains the right to conduct a physical audit.
Property and Casualty Insurance
Washington: On April 27, the Washington Office of the Insurance Commissioner (“OIC”) issued Emergency Order 20-05, regarding reporting requirements for collecting withheld depreciation payments during the COVID-19 pandemic. Pursuant to RCW 48.02.060(4)(a), the Insurance Commissioner orders all insurers, insurance producers, surplus line brokers, and other entities regulated by the Insurance Commissioner (hereafter “Regulated Entities”), as follows:
- All Regulated Entities transacting any property or casualty insurance business in the state of Washington that have deadlines requiring policyholders to report completed repairs in order to claim withheld depreciation payments that will expire between April 27, 2020 and June 26, 2020, or the expiration of the Governor’s Emergency Proclamation 20-25 Stay Home — Stay Healthy and any subsequent extensions or amendments, whichever is first, must extend these deadlines to at least 60 days after June 26, 2020, or the expiration of the Governor’s Emergency Proclamation 20-25, whichever is first, to give policyholders a meaningful opportunity to meet reporting requirements for withheld depreciation payments.
- All Regulated Entities transacting any property or casualty insurance business in the state of Washington that had deadlines requiring policyholders to report completed repairs in order to claim withheld depreciation payments that expired between February 29, 2020 and April 27, 2020, must extend these deadlines to at least 60 days after June 26, 2020, or the expiration of the Governor’s Emergency Proclamation 20-25 Stay Home — Stay Healthy and any subsequent extensions or amendments, whichever is first, to give policyholders a meaningful opportunity to meet reporting requirements for withheld depreciation payments.
The order remains in effect until June 26, 2020.