On March 24, 2020, the North Carolina Commissioner of Insurance issued an Advisory to insurance companies regarding policyholders impacted by COVID-19, in which he urges insurers, if consistent with prudent insurance practices, to consider the following actions:
- Consider cancellation or non-renewal of policies only after exhausting other efforts to work with policyholders to continue coverage;
- Relax due dates for premium payments;
- Extend grace periods;
- Waive late fees and penalties;
- Allow payment plans for premium payments to avoid a lapse in coverage.
Affected policyholders should notify their insurance carriers and agents and explain their individual situation and difficulties complying with payment schedules.
The entire North Carolina Advisory may be found here.