Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

New Jersey mandates 90-day grace period for insurance policyholders

State Issues Covid-19 New Jersey Consumer Finance

State Issues

On April 10, the New Jersey Department of Business and Insurance issued Bulletin 20-17 directing insurance premium finance companies to provide a 90-day grace period to pay insurance premiums to any clients experiencing a financial hardship due to Covid-19. In addition, the bulletin directs companies to (i) waive late payment fees, finance charges, and delinquency charges and not report late payments to credit rating agencies; (ii) allow payments not paid during the 90-day period to be paid over 12 months or the remainder of the policy term, whichever is longer; and (iii) ensure that late payments are not considered in future premium calculations.