Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comAuthor: Scarinci Hollenbeck, LLC|April 16, 2020
On April 9, 2020, Gov. Phil Murphy signed Executive Order No. 123 (EO 123), which extended the grace periods during which certain insurance companies, including health insurers, life insurers, and property and casualty insurers, will not be able to cancel policies for nonpayment of premiums. EO 123 requires a minimum 60-day grace period for health and dental insurance policies, and a minimum 90-day grace period for life insurance, insurance premium-financing arrangements, and property and casualty insurance, which includes auto, homeowners, and renters insurance.
The New Jersey Department of Banking and Insurance has now issued guidance on how EO 123 will be implemented. Below is a brief summary provided by the Department:
The Department of Banking and Insurance guidance instructs carriers in the individual, small group, and large group health insurance markets to:
The Department of Banking and Insurance is directing property and casualty carriers to:
The Department of Banking and Insurance is directing life insurance carriers to:
Under the guidance, carriers issuing Medicare Supplement plans and insurance premium finance companies must provide grace periods and repayment over a period of time.
The bulletins issued by the Department of Banking and Insurance are available here:
The extensions are not automatic. Businesses and consumers must contact their insurance company to take advantage of the emergency grace period and to discuss options to pay their premiums over time after the grace period ends.
The Department has directed all carriers to post information on their websites regarding the grace periods. They must also provide policyholders with an easily readable written description of the terms of the extended grace period offered pursuant to the Department’s guidance.
While it is somewhat reassuring for policyholders to hear of these new directions to assist newly cash-strapped policyholders, we do not recommend that anyone invite a fight with an insurance carrier over a claimed loss of insurance coverage by unnecessarily paying any premiums late. Directives need to be interpreted and enforced, and insurance carrier personnel may see things differently and intransigently – or not at all. Succinctly: premiums due are best paid when due.
If you have any questions or if you would like to discuss the matter further, please contact me, Charles Yuen, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
The Firm
201-896-4100 info@sh-law.comOn April 9, 2020, Gov. Phil Murphy signed Executive Order No. 123 (EO 123), which extended the grace periods during which certain insurance companies, including health insurers, life insurers, and property and casualty insurers, will not be able to cancel policies for nonpayment of premiums. EO 123 requires a minimum 60-day grace period for health and dental insurance policies, and a minimum 90-day grace period for life insurance, insurance premium-financing arrangements, and property and casualty insurance, which includes auto, homeowners, and renters insurance.
The New Jersey Department of Banking and Insurance has now issued guidance on how EO 123 will be implemented. Below is a brief summary provided by the Department:
The Department of Banking and Insurance guidance instructs carriers in the individual, small group, and large group health insurance markets to:
The Department of Banking and Insurance is directing property and casualty carriers to:
The Department of Banking and Insurance is directing life insurance carriers to:
Under the guidance, carriers issuing Medicare Supplement plans and insurance premium finance companies must provide grace periods and repayment over a period of time.
The bulletins issued by the Department of Banking and Insurance are available here:
The extensions are not automatic. Businesses and consumers must contact their insurance company to take advantage of the emergency grace period and to discuss options to pay their premiums over time after the grace period ends.
The Department has directed all carriers to post information on their websites regarding the grace periods. They must also provide policyholders with an easily readable written description of the terms of the extended grace period offered pursuant to the Department’s guidance.
While it is somewhat reassuring for policyholders to hear of these new directions to assist newly cash-strapped policyholders, we do not recommend that anyone invite a fight with an insurance carrier over a claimed loss of insurance coverage by unnecessarily paying any premiums late. Directives need to be interpreted and enforced, and insurance carrier personnel may see things differently and intransigently – or not at all. Succinctly: premiums due are best paid when due.
If you have any questions or if you would like to discuss the matter further, please contact me, Charles Yuen, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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