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everybody welcome to the next edition of the break the PIAA this is our segment where we still the news of the day or the week or central topic down to hopefully 10 or 15 minutes give you the what you need to know and then of course I'll have a little bit under discussion at the end which is absolutely essential even if it's not necessarily essential today we're going to be talking about the Connecticut moratorium on cancellation policies but we did one the other day in New York so now it's Connecticut Stern New Jersey just wait till the end of this you'll probably get one of those soon so Claire ermine is going to be discussing this I should mention I am Brad latch it to the director of government affairs for CIA but I'm going to turn you over to the real experts on this Claire Claire hi everyone and today we'll talk about the now the temporary grace period for an insurance premium payments in Connecticut hope I could say insurance properly so let's dive straight into it this was all done by executive order so first talk about what the terms we're looking at an executive order these have been the executive orders are fairly long so this is not covering everything in its the parts that have to do with insurance will cover who exactly it applies to what it means for insurance producers and as well as how this executive order differs from grace periods for other states in particular New York just jump straight into it the executive order number 7s came out last last week April 1st and it requires all ensure all insurers in Connecticut to provide policyholders with a 60-day grace period on premium payments that means if a policyholder is unable to make their premium payment they get 60 days where the policy cannot be canceled that's just recognizing a lot of people are currently unable to work because all the closure is really it's a copa 19 and just giving them time it's it's not forgiving or excusing them from paying it's just buying them some time similar to the moratorium on evictions utilities cancellations and a lot of other things going on to try and prepare the hardships on people through the pandemic along those lines the executive order does require that the policyholder must experience a cope in nineteen relate financial hardship so if you are one lucky people who have not had any issues with co19 has not affected your bank balance or income then you still have to pay a premium on time same with you have to pay your mortgage and rent and all that all that fun stuff and it applies to all admitted and not admitted lines of insurance it's just a very clear executive order on all insurance admitted non emitted it lays out specific lines of insurance but also include extends beyond just what they specify so as it applies to individual policyholders the insurers must provide the sixty-eight grace period for individuals who are laid off furloughed fired or otherwise sustained a significant loss in revenue so if they are still working but they're earning a fraction of what they previously did that would still qualify as a financial hardship even though they still have a job the policyholder has to then assert this it can be through an affidavit or another statement accessible to insurance carrier the the policyholder the insurance company can require this but it's not mandated that the insurance company require the policyholder do so we'll get to that later let's make a note of that right now that it's up to the insurance company not be it's not mandatory under the executive order businesses have get the same grace period and whether they're a group policyholder have group insurance and or they have property and casualty insurance they've been qualified for the 68 grace period I'm along the same lines you have to be experiencing a significant loss in revenue whether that's just Boston revenue being required to close or having significantly reduced operations so businesses are still operating but their operations have completely shifted primarily the restaurant industry that's now doing all takeout and delivery that is a drastic shift in business that has in all likelihood I assume affected their revenue so that they would still qualify even though you can pick up you can still get pickup and delivery from them just like what the individual policyholders businesses may be required to provide an affidavit or statement if the insurance company determines they must so just as the everyone who qualifies its policyholders experiencing financial hardship individuals and businesses group policyholders and they may have to assert it so guide insurance policy in Connecticut you that you qualify for this grace period if you experience coconut scene related financial hardship brilliant for insurers it's any insurance policies in Connecticut whether they're headquartered in Hartford another part of the state or across the country that they rent policies in Connecticut they must provide this to their policyholders in the state of Connecticut they the insurance carrier so determine how how to profit off exit lis how to process it whether it's requiring that policyholder signed affidavit asserting that they've had a significant loss in revenue or another statement if it becomes very onerous the insurance department might have some further guidance to try and make it as straightforward as possible but they're really trusting insurance insurance companies to come up with this process on their own I'm the insurance companies don't actually have to buy assume most will the policyholder the insurance company is the one responsible for providing these instructions and that's in the executive order that it's up to the insurance companies to figure out how to administer this so how do how do insurance producers or agents and brokers factor into this and the short answer is they they really don't there's no obligation in the executive order for insurance producers that doesn't mean you don't have a role because you do you do probably now assume communicate between your customer and a company so it's good to both let your policy holders particularly those you might know are in a position they can experience a financial hardship such as restaurants know that this is not Shane and then talk to those carriers as well and figure out what their process isn't have those dialogues this leaves a lot of room to figure out what's best for your business and your your customers but there's not the requirement that you notify them that you send them a three-page long letter with every detail of this executive order large parks executive order this part of the executive orders about two-thirds of the page lot less lot less owners than other states there are limitations there's this is as I said earlier it's not a labor forgiveness of the insurance premium the policyholder is going to still have to pay that premium they just can do so after the 60-day period or at a later date it's again up to the insurers how to administer the program including the repayment period there's no specific language regarding how long the policyholder has to make the repayment to pay the premium back this also differs from other states the policyholder in order to qualify and must have been in good standing on March 12 2020 so they were already missed their premium payment and in the process of having their policy cancelled for non-payment of premium that they wouldn't have been in good standing and then sure the price card wouldn't apply to them and it also only applies to the cancellations or non-renewals attributed to the failure to pay premiums so a non renewal for another reason such as just underwriting factors or some some other other reason that insurance companies give for cancellation of a policy would still be in effect it would be excluded from the grace periods just go along the normal lines for cancellation and for the time frame - this applies to its starting on April 1st 2020 which is when the executive order came out and it extends for 60 days through June 1st 2020 however carriers who provided a 60-day grace period in March or April as was recommended by the insurance department in mid-march will have been deemed to have satisfy those requirements so an insurance carrier that started the 60 degrees appeared on March 24th is still compliant with this executive order even though it was before April 1st so effectively the governor couldn't go backwards and apply it previously but he can say your previous actions well do mean that you're compliant with this current law they can look forward not backwards and for other states the big one that has also done a grace period is New York New York followed up the executive order with detailed regulations that require no insurance producers notify all of their all their clients that they have this grace period could apply to them and they required a separate notice for life insurance policies so if you have a life insurance and auto policy what the same producer you would receive two notices see because they have different grace periods New York also required that policyholders have 12 months to repay the missed premiums so connect when it's possible for the carrier so the carrier can just adjust their about their books to accommodate that then it works that's different than Connecticut which doesn't have that yet we did an entire video on New York's great grace period did non-payment so I heard when you watch that if you policyholders in New York there's a lot more detailed and at least from my view more onerous than Connecticut's I will note that Connecticut's the connect insurance department hasn't issued for their guidance on this so we may have a follow-up video depending on information they had and be issuing further further information and resources for members if they send out more information but at the moment past week there hasn't been further details the executive order we also learned right before they require this video on April 9th that New Jersey announced plans for their own grace period so PA I will be providing further details as we receive them that executive order comes out and I would look forward to another video on that because there's will be different than New York and Connecticut despite the attempts of the governors of each state to coordinate together and that pretty much covers that can I get a grace period for non-payment of premium if you have any further questions feel free to email me myself Claire Brad or the P I research resource center for further for their information and below the video we'll have a link to the executive order and other resources from P ia to that you can refer to with that into the more nitty-gritty discussions that's what you need to know this is more the back story how it compares questions that we may may have been receiving so far all right Thank You Claire so I have a couple questions for you if you don't mind I get it's interesting to see this order versus New York's order this one was first in time obviously but seeing the differences in how the different states respond in your mind what is the the biggest difference between the Connecticut order we just discussed in the New York order I think the New York the can I get one is just very clear-cut it's same number of days basically for the same reasons for any policy holder there's not there's no exceptions it's not trying to piece together various what one type of Lie insurance needs another ANS first admitted it's just very straightforward and easy to read I think that goes to how insurance is actually regulated in each state because connect it has a specific insurance department and of course it's a huge industry in Hartford whereas New York its financial services I think that just in a more global view affects how they regulate insurance differently a good point at a global scale this is no offense to those departments that are joint for the ones that are just insurance tend to have a different what sort of a response rate or way they handle these situations those are dealing with both banking and insurance yes so one area that the New York order is very clear on is premium finance agencies they are singled out in that the moratorium also applies to them do we have a similar situation in Connecticut it's not as clear-cut but I think that goes where the Connecticut one the intent but can I get ones very clear that you cannot cancel an insurance policy for non-payment a non-payment and so I think well you might have run into you some people might try to make the argument like that the finance ones are finance policies are different for missed payments if you run into that situation where it's getting canceled due to not paying the fight the monthly fee for the finance company and then the insurance policy gets cancelled that would be something to bring up to the insurance department because at least my view would that we go against the intent of the executive order because it's just fair they still be cancellation of an insurance policy in Connecticut if not against the letter than certainly against the spirit yes I mean yeah that's that's what keeps lawyers employed different interpretations of the lawyer in the spirit yeah the Connecticut order does not mandate a certain repayment period like New York twelve months really puts an emphasis on the producer to reach out to their carrier partners to find out what they're doing right because you have to assume the first call hopefully the first call many clients will make is to their producer of information so having that answer yeah and I imagine that will be some something particularly with the insurance departments still sitting kind of on the sidelines for this issue might be something they address more New York the insurance apartment the Department of Financial Services has already gotten involved whereas this is an executive order and it's very clearly along the same lines of evictions and mortgage payments and utilities where it's preventing people from having their auto insurance canceled but not thinking through the next hasn't addressed the next step yeah good I think like everything else we're trying to get through this week next week and then next week we'll be dealing with whatever whatever comes the next step of this whole pandemic graceless and just to be clear so this Connecticut I think probably obviously only impacts Connecticut policies right so if you have a policyholder that originates from New York let's say but they happen to do work in Connecticut this would not extend you know and with insurance being so regulated in the state level I'm sure the insurance departments but limited authority over policies in other states so they if it's been rated and approved by the Connecticut insurance department as a policy then it would qualify but they can't do they can't expect to go into New York and vice versa how are you well I think this is great information for everybody delivered in a very concise way my point I usually deliver it so I appreciate you putting this together anything in closing you think um no just if you have if you do run into issues yeah feel free to reach out to us and we can provide guidance and also reach out to the insurance but kynect insurance department they're particularly good about responding to consumer to consumer and producers representing consumer issues and also like to keep it they're really good keeping their finger on the pulse for these so it's a good way to make them aware of what's actually happening on the ground because they also don't sell insurance they regulate it but they don't sell it so keeping them in the loop of what's happening is a good good way to kind of help guide them towards what additional guidance is necessary great point well again thank you very much for for sharing this information with us and foot the numbers I hope that everybody enjoyed it we will be back very soon with another segment of the break I hope you enjoy this let's give you soon