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Property and Casualty

COVID-19 Report

close up of a coronavirus molecule

Property and Casualty

COVID-19 Report

Maryland

For Benefits Compliance specific state updates for Maryland click here.

On March 20, 2020, the Maryland Insurance Commissioner issued Bulletin No. 20-10 to all life and health carriers and property and casualty insurers (personal and commercial lines) encouraging them to make reasonable accommodations so that individuals and businesses do not lose coverage due to nonpayment of premium during this emergency. Reasonable accommodations were identified as suspension of premiums due, extension of billing due dates and premium grace periods, and waiver of installment and late payment fees.

MD Bulletin No. 20-10

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April 17, 2020

On March 20, 2020, the Maryland Insurance Commissioner issued Bulletin No. 20-09 to all property andcasualty insurers and all property and casualty insurance producers concerning travel insurance sales during the COVID-19 State of Emergency. In the Bulletin, the Maryland Insurance Administration requests that insurers that issue travel insurance policies during the COVID-19 emergency provide an option for consumers to purchase a Cancel For Any Reason waiver, or otherwise offer an option to purchase trip cancellation coverage that will reimburse nonrefundable costs if the trip is cancelled due to COVID-19. The Bulletin did not address policies issued prior to the COVID-19 outbreak.

MD Bulletin No. 20-09

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April 02, 2020

On March 30, 2020, the Maryland Associate Commissioner for Property & Casualty issued Bulletin No. 20-15 providing guidance on extensions of automobile insurance coverage for delivery drivers during the coronavirus pandemic and state of emergency.

MD Bulletin 20-15

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April 08, 2020

On April 6, 2020, the Maryland Insurance Commissioner issued Bulletin No. 20-18 to all property and casualty insurance companies and producers insurers encouraging them to work with policyholders to make premium reductions like updating their list of out of service vehicles and the request of premium modifications all without the return of tags.

MD Bulletin No. 20-18

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April 17, 2020

On April 6, 2020 the Commissioner of Insurance issued Bulletin No. 20-12 encouraging all property and casualty insurers to consider providing temporary rate relief to policyholders for the duration of the COVID-19 crisis. The administration also requires insurers that implement rate relief measures to make a filing with the Administration.

MD Bulletin No. 20-12

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April 17, 2020

On April 6, 2020 the Commissioner of Insurance issued Bulletin No. 20-18 Encourages insurers to work with policyholders to make premium reductions like updating their list of out of service vehicles and the request of premium modifications all without the return of tags.

MD Bulletin No. 20-18

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April 17, 2020

On March 18, 2020, the Maryland Insurance Administration issued an advisory noting that most policies require a waiting period of 24 to 72 hours before coverage begins and coverage continues for the reasonable period of time to restore the property and reopen, subject to the coverage limit of liability. Some commercial policies provide Business Interruption coverage when a business is shut down due to an order by a civil authority. However, the policy still typically requires a physical loss from a covered peril as the underlying cause of the business shut down to apply.

It also noted that all insurance policies have exclusions of coverage for risks that are too great to be underwritten at an affordable price and the potential loss costs from such perils are so extreme that providing coverage would jeopardize the financial solvency of property insurers. Global pandemics like COVID-19 usually fall into this category. However, policies can be different.

We recommended that businesses review their policies and contact their insurance professionals with any questions.

MD Advisory

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April 24, 2020

On April 13, 2020, the Maryland Insurance Commissioner issued Bulletin No. 20-20 to commercial P&C insurers recommending mid-term revisions to premium amounts, waiver of short-term rate cancellation penalties, limiting impact of the use of credit for underwriting, and limiting adverse underwriting for insureds that have made Business Interruption claims that have not resulted in a claim payment.

MD Bulletin No. 20-20

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June 01, 2020

On May 20, 2020, the Maryland Insurance Administration issued a press release in which it outlined the premium relief available for P&C insurance for clients impacted by the pandemic, noting there have been 102 filings by P&C insurers for various refunds, credits, payments and dividends.

MD Press Release

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July 14, 2020

On July 2, 2020, the Insurance Administration issued Bulletin 20-28 to all property and casualty insurers and producers noting their prior request to accommodate policy holders that were unable to pay during the pandemic, also recognizing insurers’ solvency considerations. The administration will not, therefore, compel the insurers to maintain policies in force indefinitely without the payment of premiums. Carriers are asked to follow certain guidance with respect to the resumption of nonpayment cancellations of P&C policies:

  • All existing legal requirements for advance notification, mailing method and content of such notices are in effect.
  • An insurer may not cancel a current policy term as a result of a past due amount from a prior term.
  • Payments received from insureds that are in arrears should be applied to the current policy period before being applied to a prior term’s premium due.

MD Bulletin 20-28

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