RESEARCH AND BRIEFINGS

Notice of New York Department of Financial Services Regulation

 


On behalf of all of us at Marsh, we hope you, your colleagues, and your families are safe and healthy. As the COVID-19 pandemic continues to challenge businesses, our communities, and the broader economy, we are committed to providing our clients as much information as possible during these difficult and uncertain times.

As a valued client operating in New York, we wanted to advise you of recent actions that may benefit you and your organization. New York’s Governor Andrew Cuomo recently issued Executive Order 202.13. This new directive imposes a moratorium on insurance policy cancellations, non-renewals, and late payment penalties under certain circumstances due to the COVID-19 pandemic, effectively immediately.

In response to the Executive Order, the New York Department of Financial Services (DFS) adopted an emergency regulation. This regulation provides for deferrals of premium payments for Life and Property & Casualty insurance – consumers or small businesses must provide a written attestation of financial hardship resulting from COVID-19 to its insurer. These regulations require insurers, premium finance companies, and producers to provide notices to their New York policyholders, explaining the possible relief policyholders may be entitled to during this crisis.

Property and Casualty Insurance

If you are an individual consumer, personal lines property/casualty insurance policies are generally covered by the regulations, including auto, homeowners’ and renters’ insurance. 

If you are a small business, only certain types of commercial lines property/casualty insurance policies are covered by the regulations, 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 a resident in New York State, is independently owned and operated, and employs 100 or fewer individuals. 

Consumers and small businesses that qualify for relief under the regulation may defer paying property and casualty insurance premiums for sixty (60) days. 

Life Insurance

Consumers who qualify for relief under the regulations may defer paying life insurance premiums for ninety (90) days. 

Additional Information

As always, your Marsh team stands ready to support your organization and we will continue to keep you apprised of further developments surrounding the pandemic.  In the interim, please carefully review all notices that you receive from your insurers and refer to the toll-free numbers they provide to address any questions or concerns you may have.

Further information about the regulations and whether they may apply to you, your business, and your insurance program can be found by clicking here.