 New York State | DRickard Insurance "Your Favorite Insurance People" | Contact Us |
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New York State | DRickard Insurance "Your Favorite Insurance People" | Contact Us |
 | DRickard Insurance | Contact Us |
Your Favorite Insurance People
607-843-8860 insurance@drickardinsurance.com
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NYS COVID-19 Premium Hardship Notice A recent Executive Order issued by Governor Cuomo, together with
recent amendments to the insurance and banking regulations (the
“regulations”) issued by the New York State Department of Financial
Services (“Department”), extend grace periods and give you other rights
under certain property/casualty insurance policies if you are an
individual or small business and can demonstrate financial hardship as a
result of the novel coronavirus (“COVID?19”) pandemic (“affected
policyholder”). These grace periods and rights are currently in
effect but are temporary, though they may be extended further.
Please check the Department’s website at
https://www.dfs.ny.gov/consumers/coronavirus for updates. If you are an individual, generally, personal lines property/casualty
insurance policies are covered by these amendments, including auto,
homeowners’ and renters’ insurance. If you are an individual and
an affected policyholder, please contact your insurer or broker if you
are uncertain whether your policy is covered. If you are a small business, only certain types of commercial lines
property/casualty insurance policies are covered by these amendments,
generally including property, fire, commercial general liability,
special multiperil, medical malpractice, workers’ compensation,
commercial auto (including livery and other for-hire vehicles), and
commercial umbrella insurance. A business qualifies as a “small
business” if it is resident in New York State, is independently owned
and operated, and employs 100 or fewer individuals. If you are a
small business and an affected policyholder, please contact your insurer
or broker if you are uncertain whether your policy is covered.
Moratorium on Cancellation, Non-Renewal, and
Conditional Renewal If you are an affected policyholder, there is a moratorium on your
insurer cancelling, non-renewing, or conditionally renewing your
property/casualty insurance policy for a period of 60 days. If you
do not make a timely premium payment and can demonstrate financial
hardship as a result of the COVID-19 pandemic, your insurer may not
impose any late fees relating to the premium payment or report you to a
credit reporting agency or a debt collection agency regarding such
premium payment. Catching up on Overdue Insurance Payments The regulations also require your insurer to permit you, as an
affected policyholder, to pay the overdue premium over a 12-month period
if you did not make a timely premium payment due to financial hardship
as a result of the COVID-19 pandemic and can still demonstrate financial
hardship as a result of the COVID-19 pandemic. This also applies
if the insurer sent you a nonpayment cancellation notice prior to March
29, 2020. Policies Financed by Premium Finance Agencies –
Grace Period If your insurance policy has been financed through a premium finance
agency, and you, as an affected policyholder, do not make an installment
payment, the premium finance agency may not cancel your policy for a
period of at least 60 days, including any contractual grace period, and
subject to the safety and soundness of the premium finance agency.
In addition, if you do not make a timely installment payment to the
premium finance agency, the premium finance agency must extend the due
date for the installment payment by at least 60 days, may not impose any
late fees relating to that installment payment, and may not report you
to a credit reporting agency or a debt collection agency regarding that
installment payment. Catching up on Overdue Payments to Premium Finance
Agencies If you, as an affected policyholder, do not make a timely installment
payment to the premium finance agency due to financial hardship as a
result of the COVID-19 pandemic, the premium finance agency must permit
you to pay the installment payment over a 12-month period if you can
still demonstrate financial hardship as a result of the COVID-19
pandemic, subject to the safety and soundness of the premium finance
agency. This also applies if the premium finance agency issued a
non-payment cancellation notice prior to March 29, 2020. How to Demonstrate Financial Hardship If you, as an affected policyholder, are unable to make a timely
premium payment due to financial hardship as a result of the COVID-19
pandemic, you may submit to your insurer or premium finance agency, as
applicable, a statement that you swear or affirm in writing under
penalty of perjury that you are experiencing financial hardship as a
result of the COVID-19 pandemic, which the insurer or premium finance
agency, as applicable, shall accept as satisfactory proof. Such
statement is not required to be notarized. Questions |
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