May 21, 2020
A new California Dept. of Insurance (DOI) Bulletin requires insurance companies to return partial insurance premiums for May 2020 to consumers and businesses amid the ongoing COVID-19 pandemic. It’s an extension of a previous order covering March and April 2020.
The order covers P&C insurance lines: private passenger automobile, commercial automobile, workers’ compensation, commercial multi-peril, commercial liability, medical malpractice, and any other insurance line in which the risk of loss has fallen substantially due to the COVID-19 pandemic.
Insurance companies must provide a premium credit, reduction, return-of-premium, or another appropriate adjustment as soon as possible, and no later than August 11, 2020. For most (if not all) consumers, it will be a percentage of the premium.
Grace Period Extension
On March 18, the DOI issued a Notice, calling on all insurance companies to give policyholders a 60-day grace period to pay their premiums. With the deadline for this grace period fast approaching, the DOI issued a second Notice requesting that insurance companies extend the grace period until July 14, 2020. DOI is also asking that, when possible, insurance agents, brokers, and other licensees facilitate online payments to eliminate the need for in-person payments.
