Guidance Follows Executive Order; Requires Emergency Grace Period of at Least 60 Days For Health Insurance Policy Holders & at Least 90 Days for Auto, Homeowners, Renters and Life Insurance Policy Holders
TRENTON — The New Jersey Department of Banking and Insurance today directed insurers to provide financial relief to residents and businesses, as New Jerseyans suffer financial hardship due to the COVID-19 pandemic. The guidance issued to regulated entities follows Executive Order 123 signed yesterday by Governor Phil Murphy extending 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.
The executive order 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.
Following the Executive Order, the Department directed health and dental insurance carriers in the individual market, small group and large group markets to provide a grace period for premium payments of at least 60 days. The department directed issuers of life insurance policies, property and casualty policies and insurance premium finance companies to provide a grace period for payments of at least 90 days. 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.
“We know that many New Jerseyans are facing financial hardship due to the unprecedented COVID-19 emergency. These actions will allow residents and businesses a grace period on premium payments for health insurance policies, as well as homeowners, renters, life and auto insurance. I want to thank Governor Murphy for his steadfast commitment to ensuring New Jerseyans continue to be protected by their insurance policies during this period, and that they receive the financial relief that they need,” said Department of Banking and Insurance Commissioner Marlene Caride. “I also want to thank the industry for providing financial options to policy holders that will ensure they maintain coverage, and for working in cooperation with the department as we implement these measures.”
The Department of Banking and Insurance is directing carriers in the individual, small group and large group health insurance markets to:
The guidance also directs carriers issuing Medicare Supplement plans and insurance premium finance companies to provide grace periods and repayment over a period of time. The Department directed all carriers to, in addition to posting information on their websites, provide each policyholder with an easily readable written description of the terms of the extended grace period offered pursuant to the Department’s guidance.
Bulletin – Health Insurance – Individual Market
• Bulletin – Health Insurance – Small Employer Market
• Bulletin – Health Insurance – Large Employer Market
• Bulletin – Health Insurance – Medicare Supplement
• Bulletin – Property and Casualty Insurance
• Bulletin – Life Insurance
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