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Legislative Updates

Arkansas: July 1, 2020

The Arkansas Insurance Department (AID) extended the moratorium on the cancellation and non-renewal of insurance policies due to the COVID-19 pandemic. The new order is outlined in Arkansas Insurance Department Bulletin No. 26-2020.

What You Need to Know:

  • The original order, issued May 11, 2020, called for a 45-day freeze on cancellation and non-renewal of life and health insurance policies for residents of Arkansas who have been diagnosed with COVID-19 or who have been terminated, laid off or have experienced a cessation of work due to COVID-19. This time period fell within the extended grace period that Allstate Benefits implemented for all insured.
  • Bulletin 26-2020, published on June 19, 2020, directs that the moratorium will remain in place until the governor rescinds the public health and disaster emergency currently in effect. This may result in a payment deferment period that continues beyond our original extended grace period. The Bulletin requires that affected policyholders request this extension from their insurance carrier.
  • The Bulletin requires that affected policyholders request this extension from their insurance carrier.
  • For more information on this action, visit the Arkansas Insurance Department.

New Jersey: June 19, 2020

The New Jersey Department of Banking and Insurance (DOBI) recently issued a Bulletin about accommodations for accident and health insurance policyholders and certificate holders impacted by the COVID-19 pandemic. Previous DOBI Bulletins offered similar accommodations to life insurance policyholders and certificate holders.

If New Jersey residents with accident and/or health insurance policies or certificates are experiencing financial hardship due to COVID-19, they:

  • May defer paying life insurance premiums for 60 days
  • Are permitted to pay the deferred premium over a 6-month period without loss of coverage
  • Will not incur late fees, have coverage cancelled for non-payment, or be reported to a credit reporting agency or a debt collection agency due to non-payment

What You Need to Know:

  • Allstate Benefits will be notifying accident and health insurance policyholders and certificate holders who reside in New Jersey of this information via U.S. mail. Letters were mailed the week of June 15, 2020.
  • This new guideline is temporary, although it may be extended further.
  • For more information on this action, visit the New Jersey Department of Banking and Insurance site.



District of Columbia: June 5, 2020

In response to the COVID-19 pandemic, District of Columbia Mayor Muriel Bowser and the D.C. Department of Insurance, Securities and Banking (DISB) recently issued an Order stating that all carriers that offer insurance products must provide accommodations to their policyholders and certificate holders who reside in D.C. during the declared Public Health Emergency. The Order became effective on April 27, 2020 and applies to all insurance policies in effect as of that date.

The accommodations include:

  • No cancellations for non-payment
  • Waiver of late fees
  • Ability to pay the deferred premium over a 12-month period without loss of coverage. The repayment period begins one month after the Public Health Emergency ends.
  • Deferment of cancellations, non-renewals and adverse underwriting actions

What You Need to Know:

  • Allstate Benefits will be notifying all policyholders and certificate holders who reside in D.C. of this information via U.S. mail. Letters are expected to be mailed by June 5, 2020.
  • This new guideline is temporary, although it may be extended further
  • For more information on this action, visit the DISB website.



Michigan: May 22, 2020

In response to the COVID-19 pandemic, the Michigan Department of Insurance and Financial Services (DIFS) recently issued a Bulletin stating that all carriers that offer life, health or disability insurance in Michigan must provide accommodations to their policyholders and certificateholders who reside in Michigan and have been affected by the COVID-19 pandemic.

If Michigan residents with life, health or disability insurance policies or certificates are experiencing financial hardship due to COVID-19, they:

  • May defer paying insurance premiums if they have experienced a hardship due to COVID-19
  • Will not incur late fees, or be reported to a credit reporting agency or a debt collection agency due to non-payment

What You Need to Know:

  • Allstate Benefits will be notifying all policyholders and certificate holders who reside in Michigan of this information via U.S. mail. Letters should be received the week of May 25, 2020.
  • This new guideline is temporary, although it may be extended further.
  • For more information on this action, visit the Michigan Department of Insurance and Financial Services website.



Pennsylvania: May 22, 2020

In response to the COVID-19 pandemic, the Pennsylvania Insurance Department issued a Notice (PA 2020-03) stating that all health insurers and producers must clearly present the coverage details and limitations of coverage of the policies they are selling to consumers who are Pennsylvania residents. The information must be in “communications to consumers prior to and at the point of sale by insurers, producers, or affiliates.” A subsequent Notice (PA 2020-09) clarified that accident, cancer, critical illness and hospital indemnity insurance products are subject to the requirements of these Bulletins.

If you would like to read the original Notices, they are available on the Pennsylvania Insurance Department website at Regulation > Laws & Regulations > Department Notices.

We created a document for Pennsylvania residents to fulfill the requirements of the Bulletins. All insurance sales representatives offering Allstate Benefits accident, critical illness, cancer or hospital indemnity products to Pennsylvania residents must present a copy of the document to potential consumers prior to the sale and at the point of sale until further notice.

The document addresses the major points outlined in the Bulletin, namely that:

  • Coverage is not being made available pursuant to a Special Enrollment Period or other special enrollment opportunity.
  • Coverage is not comprehensive major medical coverage under the Affordable Care Act and is not eligible for premium tax credits or cost-sharing reductions.
  • Coverage may have COVID-19 related benefits, including benefits for certain tests, physician visits, hospitalization, ambulance and disability. All benefits, with the exception of disability, pay a specified amount per day, regardless of any other medical coverage.
  • Coverage is not Medical Assistance (Medicaid) or Children’s Health Insurance Program (CHIP) coverage.
  • The impact of COVID-19 testing on treatment will not have any impact on the renewability of coverage.



New Jersey: April 29, 2020

In response to the COVID-19 pandemic, the New Jersey Department of Banking and Insurance (DOBI) recently issued a Bulletin stating that all carriers that offer life insurance in New Jersey must provide accomodations to their life insurance policyholders & certificateholders who reside in New Jersey who have been affected by the COVID-19 pandemic.

If New Jersey residents with life insurance policies or certificates are experiencing financial hardship due to COVID-19, they:

  • May defer paying life insurance premiums for 90 days
  • Are permitted to pay the deferred premium over a 12-month period without loss of coverage
  • Will not incur late fees, or be reported to a credit reporting agency or a debt collection agency due to non-payment

What You Need to Know:

  • Allstate Benefits will be notifying life insurance policyholders & certificateholders who reside in New Jersey of this information via U.S. mail. Letters are expected to be mailed by Friday, May 1, 2020.
  • This new guideline is temporary, although it may be extended further.
  • For more information on this action, visit the New Jersey Department of Banking and Insurance site.



New York: UDPATED June 28th, 2020 (originally posted April 16, 2020)

Order extended to July 6th, 2020.

In response to the COVID-19 pandemic, Governor Cuomo and the New York Department of Finance (DFS) recently revised the guidelines for collecting premiums on life insurance products offered in New York. All carriers that offer life insurance in New York must now notify their insureds of the following:

If they are experiencing financial hardship due to COVID-19, they:

  • May defer paying life insurance premiums for 90 days
  • Are permitted to pay the deferred premium over a 12-month period without loss of coverage
  • Will not incur late fees, or be reported to a credit reporting agency or a debt collection agency due to non-payment

The deferment is also available to insureds who received a nonpayment cancellation notice prior to March 29, 2020 and were affected by COVID-19 in 2020.

What You Need to Know:

  • Allstate Benefits will be notifying Allstate Life Insurance Company of New York (ALNY)life insurance policyholders of this information via U.S. mail. Letters are expected to be mailed by April 17, 2020.
  • This new guideline is temporary, although it may be extended further.
  • For more information on this action, visit the New York State DFS Industry Guidance site.