For Benefits Compliance specific state updates for Ohio click here.
DEPARTMENT OF INSURANCE ISSUES BULLETIN TO AUTOMOBILE INSURERS CONCERNING PREMIUM FLEXIBILITY
April 17, 2020
March 24, 2020, the Ohio Department of Insurance issued Bulletin 2020-06 to all automobile insurers prohibiting them from canceling, non-renewing, or refusing to issue a policy of automobile insurance, or denying a claim, solely because the driver’s license of a named insured or other covered family member has expired since the governor’s declaration of emergency.
Additionally, the automobile insurance premium amounts charged for new or renewal automobile insurance policies must not be calculated in a manner that will adversely impact the policyholder due to an insured driver’s inability to renew his or her license. This Bulletin expires thirty days after the expiration of the state of emergency declared by Governor DeWine on March 9, 2020.
OH Bulletin 2020-06
Proposed House Bill 589 Rewrites Business Interruption Insurance Coverage
On March 24, 2020, House Bill 589 was introduced in the General Assembly that would require insurers that provide business interruption insurance to cover losses that arise from viruses and pandemics, regardless of whether their policies contain exclusions for such risks.
House Bill 589 would be in effect only during the state of emergency ordered by Gov. DeWine on March 9, 2020 and would apply to businesses located in Ohio that have 100 or fewer eligible employees, and have been issued an insurance policy that includes coverage for business interruption.
The legislation provides for reimbursement to individual insurers that pay claims for business interruption that arise out of the COVID-19 pandemic. Money for the reimbursements would be available through a newly created Business Interruption Insurance Fund, which would be funded by assessments.
OH House Bill 589
DEPARTMENT ISSUES BULLETIN REQUIRING PREMIUM GRACE PERIOD
April 17, 2020
On March 30, 2020, the Ohio Department of Insurance issued Bulletin 2020-07 to property and casualty, life, and long term care insurers in which such insurers were ordered to provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium during the state of emergency.
This means Insurers should offer payment accommodations, such as allowing consumers to defer payments at no cost, extending payment due dates, or waiving late or reinstatement fees, where consumers are unable to make timely payments of premium or fees due to COVID-19-related disruptions.
The superintendent is not requiring insurers to waive any premiums or other consideration owed on any policy or contract during this period. Further, the Superintendent anticipates that a failure to pay premiums or remit consideration by the end of the grace period may subject the policy to a retroactive cancellation, in accordance with the policy terms.
Further, the superintendent orders insurers to provide at least a 60-day grace period as to any policy provision that imposes a time limit on an insured or claimant to perform any act, including the submission of information or funds, with respect to a contract for insurance. This means Insurers are to extend such time limits by at least 60 calendar days from the last day allowed under the terms of the contract, or any longer period that may be deemed reasonable under the specific circumstances related to that insured or claimant.
OH Bulletin 2020-07