Kentucky Practices of Premium Relief Notice

On March 6, 2020, Kentucky Governor Beshear issued Executive Order 2020-215 declaring a State of Emergency due to the COVID-19 pandemic, and, on March 9, 2020, pursuant to Executive Order 2020-220, gave the Commissioner of Insurance the authority to temporarily waive, suspend, or modify the operation of any statute or administrative regulation to serve the interest of public health, safety and welfare during the COVID-19 related State of Emergency. The Kentucky Department of Insurance has accordingly issued Practices of Premium Relief guidance to insurance carriers.

The guidance advises that during the State of Emergency, the Department will not regard certain activities as unfair trade practices or unfair methods of competition, including but not limited to:

Performing mid-term adjustments to retroactively or prospectively apply returned premium according to the change in risk exposure;
Placing coverage in abeyance, at the request of the insured, due to pandemic-related changes in risk and desire to prevent lapse in coverage;
Waiving fees, penalties, or other charges relating to an insured’s temporary inability to submit premium payments or otherwise respond to an insurer’s inquiries;
Virtual auditing or allowing self-auditing and self-reporting in lieu of physical auditing;
Extending grace periods for premium payment;
Extending the effective termination date of non-renewals and cancellations;
Extending submission deadlines for proof of loss; and
Encouraging insureds to use electronic payment technology that aids social distancing.

This guidance will remain in effect for the duration of the state of emergency order. To read this notice in full, click here.