California Insurance Commissioner Requests 60-Day Insurance Premium Grace Period
By Newfront | Published March 25, 2020
**UPDATE – May 15, 2020: **In a press release, California Insurance Commissioner Ricardo Lara requests that the grace period to pay insurance premiums be extended until July 14, 2020, which is 60 days from the date of this notice. Accordingly, insurance companies should not cancel or non-renew a policyholder for failure to pay insurance premiums during this time period. Please see below to reference the original request.
March 25, 2020
From the Property & Casualty team:
To our Clients,
The COVID-19 public health emergency has created challenges for severely impacted clients to make timely insurance premium payments. Newfront recognizes the importance of keeping your insurance program in place. We want to share a welcome development on March 18, 2020 from Richard Lara, California Insurance Commissioner. He has called for insurance companies to institute a 60-day insurance premium grace period to pay insurance premiums. The California Department of Insurance Press Release along with the Commissioner’s notice can be found via this link. The Commissioner made the request to ensure policies are not cancelled for nonpayment of premium due to the novel coronavirus (COVID-19). “Now is the time to come together to help consumers weather this unprecedented period of uncertainty, and that includes helping policyholders maintain their insurance coverage if they are unable to pay their premiums,” said Commissioner Lara. “We must do everything we can to ensure that consumers and their families maintain insurance coverage protection during this public health pandemic.” This notice pertains to all insurance coverages provided in California including life, health, auto, property, casualty and other types of insurance. The various insurance companies are in the process of developing their response to the DOI and Commissioner’s request to provide a 60-day grace period in the payment of their insurance to those policyholders impacted by COVID-19. As additional information is made available your Newfront team member can assist you with questions specific to your insurance policy and payment of premium.
Lara is also requesting that “all insurance agents, brokers, and other licensees who accept premium payments on behalf of insurers take steps to ensure that customers have the ability to make prompt insurance payments, if and where possible. This includes alternate methods of payment, such as online payments, to eliminate the need for in-person payment methods in order to protect the health and safety of both workers and customers.” Our previous COVID-19 communications have included Newfront's actions to accept premium payments from our clients electronically (ACH or Wire) to insure timely and safe processing. Our banking information can be found on Newfront Invoices. For more information specific to alternative methods of payment, please contact Newfront.
Newfront is committed to working closely with our insurance company partners to seek the most beneficial solutions that provide relief during these unparalleled times.
Newfront is a modern brokerage transforming the risk management, business insurance, total rewards, and retirement services space through the combination of elite expertise and cutting-edge technology. Specializing in more than 20 industries and headquartered in San Francisco, Newfront has offices nationwide and is home to more than 800 employees serving organizations across the United State and globally.