Accommodations for Nonpayment of Premiums During COVID-19 State of Emergency

On March 20, 2020, the Insurance Administration published Bulletin No. 20-10. The bulletin relates to the difficulties individuals and businesses may be facing as a result of the State of Emergency declared by the governor on March 5, 2020, in connection with COVID-19. The bulletin encourages carriers to make reasonable accommodations so that individuals and businesses don’t lose coverage due to nonpayment of premium during the emergency. Reasonable accommodations may include suspension of premiums due, extension of billing due dates and premium grace periods, and waiver of installment and late payment fees. Carriers should also use electronic payment technology on websites, apps and electronic bank transfers whenever possible.

The bulletin contains no new employer compliance obligations. Maryland employers that may be in a difficult spot with cash flow or other business issues, though, may want to reach out to their carrier with respect to some of the accommodations above that may be available.

Bulletin No. 20-10 »