Ohio Department of Insurance Issues Bulletin Requiring Property & Casualty Insurers to Defer Premium Payments for 60-Day Grace Period
As a result of the coronavirus outbreak, the Ohio Department of Insurance (ODI) has issued Bulletin 2020-07 requiring insurance companies 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. This bulletin is similar to past bulletins issued by ODI when natural disasters strike. The primary difference with this particular bulletin is that it applies statewide instead of to an isolated geographic area impacted by the disaster.
The bulletin states that a failure to pay premiums or remit consideration by the end of the grace period may subject the policy to a retroactive cancellation, in accordance with the policy terms.
Additionally, Director Froment has ordered insurers to provide at least a 60-day 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. This means insurers are to extend such time limits by at least 60 calendar days from the last day allowed under the terms of the contract, or any longer period that may be deemed reasonable under the specific circumstances related to that insured or claimant.