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Property and Casualty

COVID-19 Report

close up of a coronavirus molecule

Property and Casualty

COVID-19 Report

Arizona

For Benefits Compliance specific state updates for Arizona click here.

On March 13, 2020, the Arizona Department of Insurance issued a press release outlining 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.

AZ FAQs

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April 24, 2020

On April 16, 2020, the Arizona Department of Insurance issued Bulletin 2020-04 to all insurers (life, health, motor vehicle, property, casualty, etc.) encouraging insurers to provide the following types of relief:

  • Refrain from cancelling or nonrenewing policies due to nonpayment
  • Grant a grace period for premium payment to be made when practicable
  • Work with insureds on premium payment plans for late payments
  • Waive late fees, interest, and penalties
  • Suspend credit reporting
  • Refrain from cancelling auto policies due to expired driver’s license
  • Extend time for policyholders to replace or repair to ensure recovery of withheld depreciation

AZ Bulletin 2020-04

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June 01, 2020

On May 14, 2020, the Arizona Department of Insurance issued a Substantive Policy Statement in which it prohibits workers’ compensation claims regarding COVID-19 from being categorically denied. Additionally:

  • Clarifies that any denial of COVID-19-related workers’ compensation claims must be “well-grounded in fact” and “warranted by existing law” (or based upon a good faith argument for the extension, modification or reversal of existing law).
  • Recommends that carriers and employers consider certain factors when evaluating COVID-19 claims, including, among others:
    • The nature of the employment and the risk of contracting COVID-19
    • Whether an identifiable exposure occurred at work
    • Whether any identifiable exposure occurred outside of work
    • The timing between an identifiable exposure and the development of COVID-19
    • symptoms
    • The reliability of medical or other evidence that the work-related exposure caused the disease

AZ Substantive Policy Statement

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