In response to the COVID-19 pandemic, District of Columbia Mayor Muriel Bowser declared a Public Emergency and Public Health Emergency on March 11, 2020. As part of the response, the Commissioner of the Department of Insurance, Securities and Banking has issued Order 03-2020, addressing the impact of the pandemic on insurance policyholders and actions that carriers must take to provide relief to consumers.
These actions include:
- Insurance companies and premium finance companies are prohibited from terminating insurance contracts due to non-payment. This prohibition does not eliminate the obligation to pay unpaid premiums, but rather is a grace period extension.
- Insurance companies must:
- Provide policyholders the ability to repay any unpaid premiums in installments over a period of not less than twelve months beginning one month after the end of the Public Health Emergency.
- Waive installment, late payment or reinstatement fees;
- Defer cancellations, non-renewals and adverse underwriting actions;
- Extend billing due dates and premium grace periods;
- Ensure that late payments during the emergency are not considered in any future premium calculations at any time;
- Make District policyholders aware of the accommodations available;
- Provide ready access for policyholders to apply for such accommodations, online, by mail, and telephonically;
- Provide an option to use electronic payment technology through a website, a software application or electronic bank transfers, when possible;
- For policies subject to audits, allow policyholders to self-audit and self-report changes in exposure so that adjustments in premiums can be made;
- For drivers who do not otherwise have coverage for deliveries through their personal policy or another policy, provide a waiver or suspension of the “commercial” or “livery” use exclusion and exception in personal passenger automobile coverage to accommodate insureds while driving their own or another automobile for delivery of food, medicine or medical supplies for their employer, the organization for which they are volunteering, or for the benefit of the person for whom the delivery is being made, and the delivery is the result of the Public Health Emergency. This coverage does not stack with any coverage that is currently provided; and
- Notify businesses that hired and non-owned auto coverage is available on general liability policies, if requested.
These emergency relief measures and guidance will remain in effect through the duration of the Public Health Emergency.
To read the full Order 2020-079 , click here.