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Ex. AGY-ST-UTILITIES-HOUSING-AG-072 Order Primary source read

Notice: 60-Day Grace Period for Insurance Premium Payments Due to the Disruption Caused by the Novel Coronavirus (COVID-19) Outbreak

Notice to all admitted and non-admitted insurance companies, all licensed producers and other interested parties requesting at least a 60-day grace period for premium payments and alternate methods of payment

Insurance Commissioner Ricardo Lara · California (Insurance Commissioner) (Sector regulator)

The COVID Project

The record

Jurisdiction
California (Insurance Commissioner) · California
Level
Sector regulator
Authority
Cal. Ins. Code 12921
Issued
2020-03-18 Mar. 18, 2020
Effective
2020-03-18
End
Request for a 60-day period. (read as 2020-06-30)
In force
Mar. 18, 2020 to June 30, 2020
Quarters
2020 Q2
Limitation types
Other
Addressees
  • all admitted and non-admitted insurance companies providing any insurance coverage in California, including life, health, auto, property, casualty and other lines (the FAIR Plan Association's member insurers included)
  • all insurance agents, brokers and other licensees who accept premium payments
Functions reached
  • IN insurers' cancellation and billing operations (grace period requested)
  • BR and OP agents' and brokers' in-person payment handling replaced by remote methods
  • CB policyholders
Collection
State utilities, housing and agriculture agencies AGY-ST-UTILITIES-HOUSING-AG

Operative words

In response to the disruption caused by the outbreak, Insurance Commissioner Ricardo Lara is requesting that all insurance companies provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium during this challenging time due to circumstances beyond the control of the insured. This request is directed to all admitted and non-admitted insurance companies that provide any insurance coverage in California including, life, health, auto, property, casualty, and other types of insurance. In addition, Commissioner Lara is requesting that all insurance agents, brokers, and other licensees who accept premium payments on behalf of insurers take steps to ensure that customers have the ability to make prompt insurance payments. This should include alternate methods of payment, such as online payments, to eliminate the need for in-person payment methods, in order to protect the safety of workers and customers.

Enforcement

A regulatory request, not an order; issued under the Commissioner's supervisory authority and followed by the mandatory refund order of April 13, 2020 (Ex. 073)

Notes

The notice recites that 'emergency public health measures by state and local leaders are contributing to widespread interruptions and loss of income for many California consumers and businesses.'

Retrieval note

Accompanied by the Commissioner's press release 030-2020 of the same date (read).