Topic: COVID-19

COVID-19 Daily Insurance Regulatory Updates To Keep You Informed During The Lockdown (March 26th, 2020)

In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling information from state and federal resources, including insurance trade associations, 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.

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Minnesota Governor Issues Stay At Home Executive Order

On March 25th, Governor Tim Walz issued Executive Order 20-20 (the “Order”) directing Minnesotans to stay at home or in their place of residence except to engage in the Activities and Critical Sector work described by the Order. For purposes of the Order, homes or residences include hotels, motels, shared rental units, shelters, and similar facilities, to the extent they are used for lodging.

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Delaware Orders Insurers To Cease Cancellation Or Non-renewal Due To Nonpayment During Delaware State Of Emergency

On March 24th, Governor John Carney, in consultation with the Delaware Department of Insurance, issued a sixth modification to the state of emergency requiring that insurers cease cancellations or non-renewals of insurance policies due to nonpayment of premium duration the declared Delaware State of Emergency for those residents and businessowners experiencing a loss of income. Previously, Insurance Commissioner Navarro had only recommended insurers take these action.

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DC Issues Guidance Relating to Insurance Impacts of COVID-19 Public Health Emergency

The District of Columbia’s Acting Commissioner of the Department of Insurance, Securities and Banking (“DISB”), Karima Woods released  Commissioner’s Order 01-2020 on March 20, 2020 (the “Order”). The Order applies to all carriers offering health benefit plans in the District and all medical services obtained during the ongoing public health emergency, as declared by DC Mayor Muriel Bowser.

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Texas Department of Insurance Announces Extension of Claims Handling Deadlines Due to COVID-19

The Texas Department of Insurance (TDI) has announced that the claims-handling deadlines imposed by Texas prompt-payment laws are extended by 15 days.  The extension will assist carriers in responding to the Coronavirus pandemic and results from the combined operation of actions taken by Texas Governor Greg Abbott and Texas Insurance Commissioner Kent Sullivan.

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New York Department of Financial Services Issues Circular Letter No. 7 Urging Regulated Entities to do Their Part to Support Consumers, Including Actions to Avoid Cancellation or Non-Renewal of Policies

On March 19th, the New York Department of Financial Services (“DFS”) issued Circular Letter No. 7 (2020) (the “Letter”) urging all regulated entities to do their part to alleviate the adverse impact caused by COVID-19 on consumers and small businesses.

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West Virginia Commissioner Issues Executive Order and Bulletin ‎During COVID-19 Pandemic; Urging Insurers to Forbear from the Cancellation or Non-Renewal of Policies, and Allowing Temporary Licensing of Insurance Producers

On March 18th, West Virginia Insurance Commissioner James A. Dodrill‎ (the “Commissioner”) issued Emergency Order 20-EO-02 (the “Order”), urging insurers to forbear from the cancellation or non-renewal of policies for reasons...

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First Business Interruption Coverage Case Filed In Louisiana

On Monday, March 17, 2020, the Oceana Grill, a popular restaurant in the heart of the French Quarter in New Orleans, filed the first known business interruption lawsuit arising out of the COVID-19 pandemic.  Oceana Grill alleges that it purchased an “all risk policy” from defendant Certain Underwriters at Lloyd’s London (“Underwriters”) which covers all direct physical losses to its property “unless the loss is specifically excluded or limited in the policy.”  According to Oceana Grill, the coronavirus is “physically impacting public and private property, and physical spaces in cities around the world.” 

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