Consumer Protections During Coronavirus Pandemic

On March 20, 2020, the Insurance and Safety Fire Commissioner issued Directive 20-EX-5 regarding the coronavirus (COVID-19) crisis. The directive is issued to all licensed insurance companies in the state.

The guidance is provided as part of the state’s public health emergency response to the spread of COVID-19. This directive recognizes the financial hardships and business disruptions resulting from COVID-19 mitigation measures.

Accordingly, insurance companies are directed to refrain from canceling policies due to nonpayment. As applied to health insurance policies, the directive is in effect until further notice. This initiative is intended to ensure those affected by the pandemic retain access to health care.

The directive also suspends regulatory functions requiring in-person interaction, including on-site exams, audits and licensing requirements. Certain non-federal insurer filing requirements and deadlines are similarly suspended.

This communication is directed at insurance companies. However, employers may also wish to be aware of these developments. The directive is accessible at the below link:

Directive 20-EX-5 »