California Insurance coverage Commissioner Ricardo Lara issued a proper discover asking insurance coverage firms to implement protecting measures, together with a moratorium on cancellations, for policyholders who could also be impacted by the federal authorities shutdown.
In response to the California Division of Insurance coverage, the discover applies to roughly 160,000 civilian employees who might face cancellation or non-renewal of dwelling, well being, or different traces of insurance coverage if they’re unable to pay premiums on time because the shutdown started on October 1.
Lara’s discover extends to small companies and others affected by interrupted federal contracts and grants.
“The federal authorities shutdown has severe penalties for Californians who’re already struggling to search out protection and reasonably priced choices,” Lara mentioned in a press release. “It’s essential for us on the state stage to take each doable measure to guard our civil servants and those that depend on federal funds throughout this management disaster and neglect of responsibility.”
Lara’s discover requests that insurers present the next measures for affected policyholders:
Grace durations: Suspending or withdrawing any earlier discover of cancellation or non-renewal issued after October 1 as a result of non-payment of premiums. The discover requests that insurance coverage firms preserve protection in instances of unpaid premium for at the least 30 days or throughout the federal shutdown.
Waiver of late charges and penalties: Eliminating late charges and penalties related to late funds.
Extension of claims and underwriting deadlines: This contains extending deadlines for submitting proof of loss or different declare varieties, conducting examinations underneath oath, medical examinations, bodily inspections of insured property and assembly required repairs to adjust to underwriting tips.
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Carriers
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