Maryland Insurance Administration Issues Bulletin Regarding Direction and Recommendations in Wake of COVID-19 Crisis
Yesterday, April 13, 2020, the Maryland Insurance Administration (MIA) issued a Bulletin to all Property and Casualty insurance companies and producers setting forth direction and recommendations for how to treat certain policyholders in the wake of the COVID-19 crisis. See below and MIA Bulletin 20-20-Commercial-Insurance-COVID-19 for additional information.
1. Policies rated using estimated payroll/revenue:
All insurers writing commercial policies of this sort should work with producers to accommodate policyholder requests for mid-term revisions to premium based on COVID-19 related changes in payroll or revenue rather than waiting for actual payroll/revenue results at the close of a policy period.
2. Short-rate penalty policy provisions:
The Insurance Administration requests all insurers to waive or reduce to the greatest extent possible short-rate cancellation penalties during the COVID-19 crisis.
3. Use of credit for underwriting:
To the extent possible, insurers should weight such reviews heavily on pre-COVID-19 data; and, minimize the impact of COVID-19 by reviewing an insured’s or applicant’s credit/financial history over a period of several years.
4. COVID-19 claim inquiries:
The Insurance Administration requests all commercial insurers to refrain from attaching any adverse underwriting or pricing outcomes for insureds who have made inquiries or filed Business Interruption claims that have not resulted in a claim payment.
For more information on this and all other COVID-19 related issues please visit our regularly updated RWL COVID-19 Subgroup Page.
We will continue to provide updates as they become available. At RWL we continue to stand ready to assist you during these difficult times. We can be reached at (410) 269-5066, online at https://www.rwllaw.com/, and on Facebook, LinkedIn, Twitter.