New York adopts emergency regulations for insurance customers

State Issues Covid-19 New York NYDFS

On March 30, the New York Department of Financial Services announced emergency regulations requiring New York State regulated issuers of life insurance and annuity contracts, property and casualty insurers and premium finance agencies to provide relief to consumers and businesses experiencing financial hardship due to the Covid-19 outbreak.  Among other things, the emergency regulations: (i) extend grace periods for making life insurance payments for 90 days, and for making property and casualty insurance payments for 60 days;  (ii) establishing a special enrollment period from April 1 to April 15 to obtain health insurance under the New York State’s Health Plan Marketplace; (iii) prohibit life insurers and property and casualty insurers from imposing late fees, reporting the policyholder to a credit bureau, or referring the policyholder to a debt collection agency with respect to such delayed payments; (iv) permit premiums due but not paid during the grace period to be repaid over 12 equal monthly installments; and (v) require premium finance companies to grant the same relief to consumers and businesses that have financed the payments of their premiums, subject to safety and soundness considerations.