Massachusetts has been under a State of Emergency to respond to COVID-19 since March 10, 2020. The Office of Consumer Affairs and Business Regulation, Division of Insurance issued Bulletin 2020-05 on March 23, 2020, which includes the following guidance:
The Division of Insurance expects all insurance carriers to take all necessary steps to preserve individual and employer access to insurance coverage during the COVID-19 public health emergency.
- All insurance carriers are to provide employers and individuals with as much flexibility as is reasonably possible to maintain their existing coverage during the period of the COVID-19 public health emergency. Carriers should:
- Explore ways to streamline or delay the submission of administrative paperwork that may jeopardize the maintenance or issuance of coverage.
- Explain grace periods that usually allow distressed policyholders experiencing financial hardship to delay payments without coverage termination.
- On a case-by-case basis, work with employers or individuals experiencing financial hardship to find the best ways to address concerns with the timing of premium payments in order to delay any cancellation of coverage for non-payment and collection activity.
- Explore all possible ways to: relax due dates for premium payments, extend grace periods, waive late fees, non-sufficient funds fees, installment fees and penalties, allow payment plans for premiums, assist affected policyholders to find ways that insurance policies do not lapse, and consider cancellation or non-renewal of policies only after exhausting other efforts to work with policyholders to continue coverage.
The entirety of Bulletin 2020-05 may be found here.