On March 9, 2020, Governor Mike DeWine declared a state of emergency in Ohio to protect the well-being of Ohioans from the dangerous effects of COVID-19. In recognition, the Ohio Department of Insurance issued Bulletin No. 2020-07 effective March 30, 2020, which orders the following:
- Insurers must provide their insureds with at least a 60-day grace period to pay insurance premiums, so that their policies are not cancelled for nonpayment of premium during the state of emergency.
- Insurers should offer payment accommodations, such as deferment of payments, extended due dates, or waived late or reinstatement fees where consumers are unable to make timely payments of premium or fees due to COVID-19-related disruptions.
- Insurers must provide at least a 60-day grace period for any policy provision that imposes a time limit on an insured or claimant to perform any act with respect to a contract for insurance. The 60-day extension should start on the last day allowed under the terms of the contract.
The Department of Insurance is not:
- Requiring insurers to waive any premiums or other consideration owed on any policy or contract. Failure to pay premiums or remit consideration by the end of the grace period may subject the policy to a retroactive cancellation, in accordance with the policy terms.
- Prohibiting an insurer from cancelling or nonrenewing a policy for any lawful reason other than nonpayment of premium.
The entire Ohio Bulletin 2020-07 may be found here.