Governor Cuomo has recently passed an executive order along with amendments to the insurance and banking regulations issued by the DFS (Department of Financial Services) to protect insurance policyholders who have been hit with financial hardship due to the Covid-19 pandemic.
Some of the regulations that have been implemented are the waiving of late fees, the prohibition of reporting negative data to credit reporting agencies and re-payment of late insurance premiums over a 12-month period.
See below for further information and which measures you can take if you have been impacted by the Covid-19 pandemic.
Notice to policyholders
If you are an affected policyholder there is a moratorium (temporary prohibition) on cancelling, non-renewing or conditionally renewing your policy for 60 days.
If you cannot make a payment of premium & can demonstrate financial hardship as a result of the Covid-19 pandemic late fees cannot be added to the payment.
The regulations implemented also state that as an affected policyholder if you could not make the payment due to financial hardship as a result of the Covid-19 pandemic you may pay such premium over a 12-month period.
Notice to policyholders financed through premium finance agencies
If your policy is financed through a premium finance agency they must provide a grace period of cancelling your policy due to late payment. The premium finance agency may not cancel your policy for a period of 60 days.
If you’re an affected policyholder and do not make a payment to the premium finance agency due to financial hardship as a result of the Covid-19 pandemic the premium finance agency must permit you to pay the installment over a 12-month period.
The premium finance agency in addition may not impose late fees or report you to any credit reporting agency or debt collector.
How do I demonstrate financial hardship?
As a policyholder if you cannot make a payment of premium to the insurance company or premium finance agency you can provide a signed statement to the insurance company or premium finance agency that you are experiencing financial hardship due to the Covid-19 pandemic.