Mar 24, 2020

CID requests 60-day grace period for cancellations

The Connecticut Insurance Department released Bulletin Number IC-40 on March 24, 2020, to request that—because of the disruptions that COVID-19 is causing—all insurance companies in Connecticut give policyholders a grace period of at least 60 days to pay their insurance premiums without penalty or interest. The bulletin specifies that it applies to individual consumers and Connecticut businesses that have any type of insurance coverage, including life, health, auto, property, and casualty. Specifically, the bulletin is directed at all insurance companies—admitted and nonadmitted—that provide any insurance coverage in the state.

Bulletin IC-40 only requests that insurers grant a grace period for policyholders unable to pay their premium in the coming months—it does not mandate automatically that insurance companies give policyholders extra time to pay the premium without threat of cancellation. Each company may make its own decision on how to handle the widespread interruptions and loss of income for individuals and businesses across Connecticut. PIA will monitor information distributed by companies. You also can contact companies to learn if they will follow the guidance of Bulletin IC-40.

CID also requests that all insurance agents and brokers who accept payments on behalf of insurers take any possible steps to allowed customers to make prompt payments. That should include alternatives to in-person payments, especially online payments.

The CID also issued Bulletin Number FS-36 regarding certain filing requirements for insurance companies. This bulletin addresses the limitations for obtaining notarization of documents, and submitting physical documents at this time. It also extends the filing date for quarterly financial statements. Insurers that need extensions per Bulletin FS-36 must notify the CID before the current deadline.