FAIR TREATMENT OF CONSUMERS DURING STATE OF EMERGENCY DUE TO COVID-19 (NOVEL CORONAVIRUS)

Bulletin B 20-08

TO: ALL INSURERS AUTHORIZED TO TRANSACT INSURANCE IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES

RE: FAIR TREATMENT OF CONSUMERS DURING STATE OF EMERGENCY DUE TO COVID-19 (NOVEL CORONAVIRUS)

Governor Mike Dunleavy issued a public health disaster emergency declaration for COVID-19 disease also known as the novel coronavirus on March 11, 2020. Based on the authority given the Director of Insurance during an emergency under AS 21.06.080(d), the division issues the following guidance to insurers:

All Lines of Insurance

The Alaska Division of Insurance (DOI) prohibits carriers from terminating insurance contracts due to non-payment. This effort will provide relief to affected policyholders by allowing continuing insurance coverage. In conjunction with this effort, the DOI will work with carriers to minimize the regulatory effects of such an extension, specifically financial review requirements. The extension of the grace period does not eliminate the obligation to pay the premium, but limits policy cancellation for late payment. Carriers are encouraged to work with policyholders in the collection of premiums.

It is possible that electronic payment methods may not be operating correctly due to the immediate challenges of COVID-19 self-quarantining or potential closures of banks and other financial institutions. Consumers and business owners may also be facing significant financial challenges related to the emergency declaration. It is the DOI’s expectation that any problems with premium payment during the extended period would be resolved by the insurance company without a consumer complaint being filed.

This bulletin remains in effect until June 1, 2020.

If you have any questions relating to this bulletin, please contact Joanne Bennett, Property and Casualty Supervisor, at joanne.bennett@alaska.gov or Sarah Bailey, Life and Health Section Supervisor, at sarah.bailey@alaska.gov.

Dated this 18th day of March, 2020, at Juneau, Alaska.

Lori Wing-Heier

Director

Revision History

Created 3/18/2020 3:34:07 PM by jlwillard

Details

Department: Commerce, Community and Economic Development

Category: Public Notices

Sub-Category:

Location(s): Statewide

Project/Regulation #: B20-08

Publish Date: 3/18/2020

Archive Date: 6/5/2020

Events/Deadlines: