Update: NY Compliance Alert: Producer Notice Required by April 13 for Property/Casualty Policies, Life Policies, Annuity Contracts, and Fraternal Benefit Society Certificates
In addition to life insurance policies and annuity contracts, the New York Executive Order Number 202.13 and Emergency Amendments apply to property/casualty insurance policies.
A property/casualty policy as defined by the Executive Order includes several types of insurance, including disability benefits and paid family leave insurance. The Executive Order prevents carriers from cancelling, non-renewing or conditionally renewing disability insurance and paid family leave insurance policies to an individual or small businesses for 60 days for those facing financial hardship as a result of COVID-19 pandemic. Here, a small business is a New York sitused business independently owned and operated, with 100 or fewer employees. Insurers may not impose late fees if late payment is caused by COVID-19 disruption, must accept a policyholder’s written attestation as proof of financial hardship and must allow customers to repay premiums over a 12-month period. Also, the new measure prevents insurers from reporting policyholders to debt collection agencies where payment has been delayed because of the virus.
Furthermore, the Executive Order requires licensed insurance brokers who service in-force disability and paid family leave insurance policies to email or mail a notice to individual and small business policyholders by April 13th explaining the temporary grace periods and rights that are currently in effect.
For further details, please visit the following link to find a model notice for your use:
Model Producer Notice Certain Property/Casualty Policies
NY Executive Order No. 202.13
On March 29, 2020, Governor Andrew Cuomo issued Executive Order No. 202.13
, which provides relief to New York individual and group life insurance policyholders experiencing financial hardships from the COVID-19 pandemic. Issuers of life insurance policies are required to provide the following to eligible policyholders:
Extend the grace period to 90 days for the payment of premiums and for the exercise of rights or benefits under a policy or certificate.
Allow policyholders who did not make a timely premium payment to pay such premium in equal monthly installments over a 12-month period following June 1, 2020.
Waive any late fees on policyholders who do not make timely premium payments and do not report such policyholders to a credit reporting agency or debt collector during the 90-day moratorium period.
Furthermore, the Executive Order requires licensed insurance brokers who service in-force life insurance policies to email or mail a notice to individual and group life insurance policyholders by April 13th
explaining the temporary grace periods and rights that are currently in effect.
Please click HERE
to download a Model Notice for your use.
In addition, the Executive Order requires brokers with websites to post the information on their website as well as maintain records of the communications with clients.
For additional information, please visit the following links:
Model Producer Notices: dfs.ny.gov/industry_guidance/coronavirus/model_producer_notice/life_annuity_fraternal
Executive Order 202.13 signed by Governor Cuomo:
Department of Financial Services Amendment Regulations:
If you have any questions, please contact
your Savoy Sales Team.