ODI Rescinds Premium Grace Period Bulletin; Replaces with Bulletin Encouraging Insurers to Work with Insureds

As a result of the coronavirus outbreak, the Ohio Department of Insurance (ODI) issued Bulletin 2020-07 on March 30 to require all P&C, life and LTC insurance companies that write business in Ohio to defer premium payments for at least a 60-day period during the duration of Ohio’s state of emergency that began on March 9th. Effective today, this bulletin has been rescinded and replaced with Bulletin 2020-12.

What This Means

The new bulletin issued today by ODI states that the Superintendent encourages insurance companies to provide their insureds with a grace period to pay premiums as well as to provide a grace period as to any policy provision that imposes a time limit on an insured or claimant to perform any act, including the submission of information or funds, with respect to a contract for insurance.

Ultimately, this bulletin removes the requirement that insurers provide insureds with a 60-day grace period that was put in place by Bulletin 2020-07 earlier this year.  Thus, insurers can cancel or non-renew a policy for any lawful reason including nonpayment of premium if arrangements have not been made with the insurer to provide an accommodation such as extending a premium due date. OIA members with clients who need payment accommodations should work with their insurance carriers to establish accommodations to ensure coverage remains in place.

Questions? Contact Carolyn Mangas at carolyn@ohioinsuranceagents.com.

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