COVID-19: Ohio Defers Property and Casualty Insurance Premiums | Practical Law

COVID-19: Ohio Defers Property and Casualty Insurance Premiums | Practical Law

In response to the COVID-19 pandemic, Ohio has ordered property and casualty insurers to provide insured Ohioans with at least a 60-day grace period to pay insurance premiums or submit information related to a claim. The order is effective until expiration of the Ohio state of emergency declared by Governor Mike DeWine.

COVID-19: Ohio Defers Property and Casualty Insurance Premiums

Practical Law Legal Update w-025-0254 (Approx. 3 pages)

COVID-19: Ohio Defers Property and Casualty Insurance Premiums

by Practical Law Real Estate
Published on 16 Apr 2020 • Ohio
In response to the COVID-19 pandemic, Ohio has ordered property and casualty insurers to provide insured Ohioans with at least a 60-day grace period to pay insurance premiums or submit information related to a claim. The order is effective until expiration of the Ohio state of emergency declared by Governor Mike DeWine.
In response to the 2019 novel coronavirus disease (COVID-19) pandemic, the Ohio Department of Insurance (ODI) issued Bulletin 2020-07 requiring all insurers providing property and casualty insurance policies in the State of Ohio to provide their insureds with at least a 60-day grace period to pay insurance premiums or submit information related to a claim. The bulletin is effective March 30, 2020 and remains in place until expiration of the Ohio state of emergency declared by Governor Mike DeWine on March 9, 2020 (Executive Order 2020-01D).
The bulletin does not forgive insurance premiums but provides insureds that are experiencing financial hardship due to the COVID-19 pandemic more time to:
  • Pay their insurance premiums.
  • Submit documentation to support a claim.
The bulletin recommends that property and casualty insurers offer payment accommodations to insureds that cannot make timely payments of premiums or fees due to disruptions related to the COVID-19 pandemic. These accommodations may include:
  • Allowing consumers to defer payments at no cost.
  • Extending payment due dates.
  • Waiving late or reinstatement fees.
The bulletin also requires property and casualty insurers to provide at least a 60-day grace period for any policy provision that requires an insured or claimant to perform an act within a specific time limit. For example, if an insurance contract includes a time limit for submitting documentation to support a claim or funds, the insurer must extend the time limit for either:
  • At least 60 calendar days from the last day allowed under the contract.
  • Any longer period deemed reasonable under the specific circumstances related to that insured or claimant.
The purpose of the 60-day grace period is to avoid cancellation of insurance policies for nonpayment of premiums during the Ohio state of emergency. However, the bulletin does not prohibit property and casualty insurers from:
  • Cancelling or non-renewing a policy for any lawful reason other than nonpayment of premiums.
  • Retroactively cancelling a policy for failure to pay premiums or remit consideration by the end of the grace period.

Practical Implications

The evolving COVID-19 pandemic, the mandated closures or reductions of operations for businesses, and the growing number of layoffs are creating financial hardship for many small businesses and consumers. While the ODI's bulletin provides relief and flexibility during the Ohio state of emergency, insured Ohioans experiencing financial difficulties during the COVID-19 pandemic should contact their property and casualty insurance providers to:
  • Discuss additional payment accommodations.
  • Remain insured against unanticipated risks.
For a collection of resources related to global coronavirus, COVID-19, pandemics, and business interruption content, see Global Coronavirus Toolkit.