On April 7, 2020, the State Department of Financial Services amended provisions of the state’s financial services and insurance laws to assist state residents during the coronavirus (COVID-19) pandemic. The measures are intended to promote continuity of coverage throughout the health emergency.
As background, on April 7, 2020, Gov. Cuomo issued Executive Order 202.14, which temporarily modifies insurance laws to extend the payment periods for certain health insurance premiums. The extension is available to holders of individual, small group and student blanket comprehensive health insurance policies who can demonstrate financial hardship as a result of the COVID-19 pandemic.
Accordingly, for eligible policyholders, the amendments extend the premium payment period to the later of the expiration of the contractual grace period and 11:59 p.m. on June 1, 2020. Insurers are responsible for the payment of claims and cannot retroactively terminate the policy during such period. Additionally, issuers are prohibited from imposing late fees or reporting negative data regarding the policyholders to credit reporting agencies. Policyholders must also be provided with information regarding alternate policies and contracts available from the issuer.
The emergency measures are primarily directed at insurers. However, employers should also be aware of these developments.
Fifty-Ninth Amendment to 11 NYCRR 52 »