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Property and Casualty

COVID-19 Report

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Property and Casualty

COVID-19 Report

Alabama

For Benefits Compliance specific state updates for Alabama click here.

April 02, 2020

On March 30, 2020, the Alabama Department of Insurance issued Bulletin 2020-05 to all commercial and personal lines of insurance, including property, casualty, disability, accident and health, and life insurance policies recommending insurers consider the following actions:

  • Relaxing due dates for premium payments
  • Extending grace periods
  • Waiving late fees and penalties
  • Allowing premium payment plans which will avoid a lapse in coverage
  • Expanding automobile coverage to allow personal vehicles to be covered while delivering food, medicine or other essential services for commercial purposes

The DOI also requests insurers, producers, and other licensees who accept premium payments to consider alternate methods of payment like electronic transfers.

AL Bulletin 2020-05

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April 17, 2020

On March 17, 2020, the Alabama Department of Insurance posted a list of FAQs for consumers including information on how epidemics are generally covered. According to the FAQ, insurance policies typically exclude epidemics and pandemics. Though, the FAQ also noted that there may be coverage if a specific country imposes travel restrictions. Some airlines and tour companies will allow cancellations outside of an insurance policy. Additionally, travel policies with medical coverage may cover any illnesses or hospitalizations that occur during a trip, but you need to review your policy to see if your policy is one of them. The Top Three Things to Remember:

  • Read your policy to determine if travel insurance covers the types of events that you want to cover.
  • Review the policy thoroughly. Ask about any coverage limitations or exclusions.
  • Remember, your homeowner’s policy should protect your possessions while traveling. But if you have expensive items, consider purchasing additional coverage

ALFAQs

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April 17, 2020

On April 8, 2020, the Alabama Department of Insurance issued Bulletin No. 2020-06 asking insurers to consider offering an immediate reduction in premiums based to reflect the reduced exposure.

AL Bulletin No. 2020-06

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May 08, 2020

On April 29, 2020, the Alabama Department of Insurance issued Bulletin 2020-09 to all property and casualty insurance companies requesting that they do the following:

  • Be lenient in considering late claims.
  • Relax the completion deadline and accept electronic signatures for certain statements and examinations.
  • Avoid penalizing policyholders who are delayed in completing repairs
  • Extend the allowable timeframe for policyholders to notify an insurer of the intent to make a claim and recover withheld depreciation.

AL Bulletin 2020-09

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May 08, 2020

On April 27, 2020, the department posted questions and answers concerning business interruption insurance coverage, including, among the questions, the following:

  • What does business interruption insurance cover?
  • What types of insurance policy may contain business interruption coverage?
  • How will I know if I have business interruption insurance?
  • How do I know if my policy excludes COVID-19?
  • What if my business is closed due to a voluntary or mandatory government order?
  • Can I buy insurance now to cover business interruption losses due to COVID-19?
  • What about where there is a “stay-at-home” order, the business is not classified as essential and the employees are not working?
  • Should my business file a claim if I have business interruption insurance?
  • What is the Alabama Department of Insurance doing about this issue?

AL Business Interruption Coverage FAQs

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July 14, 2020

On June 4, 2020, the department issued a press release reviewing business interruption insurance coverage and the various clauses therein. The press release walks through top considerations when buying this type of coverage and advises the business owner to read the policy carefully to make sure there is clear understanding of the risks that are excluded.

AL Press Release

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