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: (Update) On May 1, the NAIC released guidance stating that they are going to conduct data calls related to business interruption insurance. The first data call on business interruption insurance exposure and premium must be submitted directly to the NAIC by May 22. The second data call on business interruption claims experience will be due monthly, with the first report of data through June 8, 2020, due June 15, 2020. The accompanying memorandum for the NAIC Data Call had been updated to include surplus lines insurers. Alien insurers are excluded from the data call.
Alabama: On May 8, Governor Ivey issued a proclamation stating that a business, healthcare provider, or other covered entity is not liable for death or injury to persons or damage to property arising from any act or omission related to or in connection with COVID-19 transmission or response unless the claimant shows such death, injury, or damage was caused by wanton, reckless, willful, or intentional misconduct.
Maine: On May 11, the Maine Bureau of Insurance issued Bulletin 448 related to COVID-19 and credit scoring. The Bulletin encourages insurers that use credit information in underwriting or rating personal insurance policies to work with customers whose credit has been affected by the coronavirus pandemic, and reminds insurers of their obligations under Maine’s Fair Credit Reporting Act when they renew insurance policies where their customers have frozen their consumer accounts.
New York: On May 8, Governor Cuomo issued Executive Order 202.29, providing that the reviver window under the Child Victims Act is extended for five months until January 14, due to the COVID-19 shut down and reductions in court services.
Rhode Island: On May 8, Governor Raimondo issued Executive Order 20-33, extending statutory immunity from civil liability for health care facilities and personnel responding to the COVID-19 crisis. The Order states, all persons and organizations, to the extent their health care and/or personal assistance practices and/or protocols have been altered in order to test for, treat, contain, or minimize the risk of contracting or spreading COVID-19, are considered “disaster response workers” and thereby entitled to immunity under R.I. Gen. Laws 30-15-15(a) and to provide services beyond or without a license as permitted by R. I. Gen. Laws 30-15-15(b).
Texas: On May 11, the Texas Department of Insurance issued Commissioner’s Bulletin No. B-0026-20 establishing responsibilities of sponsors of licensees who have been granted temporary licenses during the COVID-19 pandemic. The Bulletin reminds people who sponsor temporary licensees of their responsibility for the licensees’ acts.
Property Casualty Insurance
Michigan: On May 8, Governor Whitmer issued Executive Order 2020-78, extending the validity of drivers licenses and vehicle registrations normally set to expire between February 1 and June 30, 2020 until July 31, 2020. The Order directs automobile insurers not to take adverse actions on policyholders because of those expirations.
Texas: On May 11, the Texas Department of Insurance issued Commissioner’s Bulletin # B-0025-20 to health insurers, health maintenance organizations, and utilization review agents regarding the extensions of prior authorizations. The Bulletin encourages health insurers, health maintenance organizations (HMOs), and utilization review agents to extend prior authorizations for elective procedures authorized before Governor Greg Abbott’s executive order on March 22, 2020, directing a postponement of those procedures.