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Property and Casualty

COVID-19 Report

close up of a coronavirus molecule

Property and Casualty

COVID-19 Report

Department of Financial Services Issues Circular Letter Concerning Cancellations Due to Nonpayment of Premiums

On March 19, 2020, the New York Department of Financial Services issued guidance to all insurance companies requesting them to support consumers and small businesses that can demonstrate financial hardship caused by COVID-19 in the following ways (in part):

  • Offering payment accommodations, such as allowing consumers to defer payments at no cost, extending payment due dates, or waiving late or reinstatement fees
  • Working with consumers to avoid cancellation of insurance policies for a) failure to pay premiums on time, b) discovery of acts or omissions that may have increased the hazard insured against, or c) physical changes in the property insured subsequent to issuance or last renewal that result in the property no longer meeting the insurer’s underwriting standards
  • Working with consumers to avoid nonrenewal of insurance policies where a consumer fails to timely respond to a nonrenewal notice

NY Insurance Circular Letter No. 7 (2020)