On April 13th, California Insurance Commissioner, Ricardo Lara, ordered insurance companies to return insurance premiums to consumers and businesses in the following lines and provide financial relief during the COVID-19 emergency.
The following lines are as follows:
- Private passenger automobile insurance
- Commercial automobile insurance
- Workers’ compensation insurance
- Commercial multiple peril insurance
- Commercial liability insurance
- Medical malpractice insurance
- Any other line of coverage where the measures of risk have become substantially overstated as a result of the pandemic.
Carriers must provide a premium credit, reduction, return of premium, or other appropriate premium adjustment as soon as possible, and no later than August 2020. Commissioner Lara has already requested at least a 60-day grace period for policyholders to pay their premiums so that insurance policies are not cancelled for nonpayment of premium during this challenging time. Together, these two actions will give consumers and businesses substantial financial relief.
The following are additional steps the Department of Insurance has already taken to assist consumers during the COVID-19 emergency:
- Requesting a 60-day grace period for consumers and businesses to pay insurance premiums
- Extending deadlines for insurance claims until 90 days after the statewide “state of emergency” or any other “state of emergency” has ended related to COVID-19
- Maintaining auto insurance for those with an expired license and/or car registration
- Extending personal auto coverage for delivery drivers for California’s essential businesses
- Eliminating cost-sharing for COVID-19 testing and screening
- Reminding insurance companies that workers’ compensation insurance applies regardless of a worker’s immigration status
- Urging uninsured Californians to obtain insurance to protect their health
- Directing health insurance companies to provide increased telehealth access for consumers
- Directing health insurance companies to submit emergency plans on prescriptions and health access
At ProAction Insurance, we are committed — and prepared — to serve our customers while also keeping our employees and communities safe. We continue to closely monitor the COVID-19 virus and the impact this pandemic is having across our country and world. While the health and well-being of our employees and our customers is our top priority, we’re also dedicated to doing what we can to provide you the service you not only need but expect from ProAction Insurance. We know you’re still depending on us to help with your insurance needs — and we are here for you.
We will continue to keep you posted for any new information we receive from our insurance carriers on how these refunds will be returned and the directives they are implementing to provide premium payment assistance.