COVID-19 State Legislation

Due to COVID-19, some states are issuing moratoriums around cancellations due to non-payment. Victor is actively monitoring state regulatory actions and will be adhering to all applicable guidelines as they are issued.

Specific information on state guidelines and legislations below.

  • Alabama: Insurers should consider the following actions: relaxing due dates for premium payments; extending grace periods; waiving late fees and penalties; allowing premium payment plans to avoid lapse in coverage. Insurers should consider cancellation or non-renewal of policies for non-payment only after exhausting all efforts to work with policyholders to continue coverage. *Applies only to admitted companies.
  • Alaska: prohibits non-pay cancellations until June 1.
  • Arizona: insurers are encouraged to work with their insureds so that coverage continues, policies do not lapse, and claimants have adequate time to fulfill requirements to obtain coverage/claim payment.
  • Arkansas: insurers may not cancel or non-renew for non-payment of premium for an insured that has been diagnosed with COVID-19. Affected policyholders must request the extension, and insurers may request evidence of the diagnosis.
  • California: requests insurers to provide 60-day payment grace period to pay insurance premiums.
  • Colorado: Insurers are directed to make reasonable accommodations to prevent individuals and businesses from losing coverage due to cancellation for the non-payment of premium. Reasonable accommodations should include extension grace periods; waiver of late payment fees; moratorium on non-pay cancellations; deferring non-renewal underwriting actions; continuation of coverage for any expiring policy. These accommodations should be available until public health orders are lifted.
  • Connecticut: insurers are requested to provide the insureds with at least a 60-day grace period to pay insurance premiums so that policies are not cancelled for non-payment of premium until the state of emergency is lifted.
  • Delaware: asks insurers to consider ceasing non-pay cancellation or non-renewal until state of emergency is lifted.
  • Florida: insurers are encouraged, when prudently possible, to be flexible with premium payments to avoid a lapse in coverage, including relaxing due dates, extending grace or reinstatement period, waiving late fees and penalties, and allowing payment plans. Insurers should consider cancellation of policies only if all possible efforts to work with consumers to continue coverage have been exhausted.
  • Georgia: prohibits non-pay cancellation on commercial policies that include business interruption or business income coverage until May 20.
  • Hawaii: insurers are encouraged to work with insureds to ensure coverage continues, policies do not lapse, and to consider the following: refrain from cancelling or non-renewing policies due to non-payment and to grant a grace period for premium payments to made; work with insureds on payment plans; waive late fees and penalties; extend timeframes for inspections; continue working with insureds for a period of 60 days after this health emergency has passed.
  • Illinois: insurers should seek to postpone or withdraw any previous notice of cancellation or nonrenewal in which the cancellation or nonrenewal occurs on or after March 9, 2020 on any in-force policy. Insurers should consider postponing the issuance of any new cancellation or nonrenewal notices through April 30, 2020 or later. *Applies only to admitted companies
  • Indiana: prohibits mid-term cancellation of liability policies for refusing to close during pandemic.
  • Louisiana: all cancellations and non-renewals taking effect between March 12 and May 12 are suspended, including premium finance cancellations. Insurers may only cancel policies at the request of the named insured or for material misrepresentation or fraud. Notices must be held and issued after May 12. SEE LOUISIANA EMERGENCY RULE 40 FOR ADDITIONAL REQUIREMENTS.
  • Maine: requests insurers to make reasonable accommodation for late payments.
  • Maryland: asks insurers to make reasonable accommodations so policies do not cancel for non-payment.
  • Massachusetts: carriers are advised to provide as much flexibility as possible during the public health crisis to help insureds maintain their existing coverage. Carriers should work with insureds experiencing financial hardship to find ways to address concerns w/ timing of premium payments to delay any cancellation of coverage for non-payment. Carriers should consider cancellation or non-renewal only after exhausting other efforts to work with policyholders to continue coverage.
  • Michigan: the Director strongly encourages insurers to provide their insureds with at least a 60-day grace period to pay insurance premiums so that policies are not canceled for nonpayment of premium.
  • Mississippi: 60-day moratorium on the cancellation/non-renewal of policies for the non-payment of premiums. The moratorium applies to all policies issued for delivery in Mississippi.
  • Missouri: asks insurers to refrain from cancellation or non-renewal until May 15.
  • Montana: the commissioner recommends that insurance companies consider the following actions: flexible payment solutions; providing additional time to make payments; allowing grace periods to delay premium payments; suspending premium billing for small businesses for a specified number of days or billing cycles; waiving late fees.
  • Nevada: carriers are encouraged to consider: providing an extended grace period before cancellation of coverage; providing flexibility with due dates for premiums; waiving late fees and penalties; payment plans for premiums to avoid a lapse in coverage; only cancel or non-renew if all other efforts are exhausted.
  • New Jersey: property and casualty insurers and premium finance companies shall not cancel any policy as a result of nonpayment for a period of at least 90 days.
  • New Mexico: Commissioner requests that all insurance companies refrain from cancelling or non-renewing policies of those negatively impacted by the disruption due to non-payment, or provide extended grace periods for payment of premiums. Insurers are encouraged to implement as soon as possible and extend them for a minimum of 30 days after emergency is over. Companies are requested to work with consumers after the emergency to allow them to catch up on past due premiums without loss of coverage.
  • New York: insurers are urged to help alleviate the adverse impact on consumers and small businesses that can demonstrate financial hardship, including taking reasonable and prudent actions by offering payment accommodations, working with consumers to avoid cancellation for failure to pay premiums, discovery of acts or omissions that may have increased the hazard insured against, or physical changes in the property that result in the properly no longer meeting the insurer’s underwriting standards. Insurers should work with consumers to avoid non-renewal policies where a consumer fails to timely respond to a non-renewal notice. For additional New York regulations, please refer to this document.
  • North Carolina: insurers are requested to consider the following actions: relax due dates for premium payments, extend grace periods, waive late fees and penalties, allow payment plans to otherwise avoid lapse in coverage. Insurers should consider cancellation or non-renewal only after exhausting other efforts to continue coverage.
  • North Dakota: the DOI urges all insurers to provide flexibility from certain insurance requirements to North Dakota consumers and businesses that have been impacted. The relief may include the following: extension of premium payment deadlines; extension of existing grace periods; additional time before cancellations or non-renewals become effective; waiver of fees, penalties, or other late payment charges; development of payment plan options for consumers and businesses facing financial hardship.
  • Ohio: Insurers are ordered to provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium during the state of emergency.
  • Oklahoma: insurers must provide 45-day grace period on all notices of cancellation for non-payment until the state of emergency is lifted. Note: If you are a policyholder and have questions about your policy or business interruption coverage, please contact your agent for assistance.
  • Oregon: insurers must immediately institute a grace period for premium payment, suspend all cancellations and non-renewals for active policies, and withdraw any outstanding notices of cancellations or nonrenewal that have not yet taken effect as of March 25 and provide those policyholders with a notice stating that the cancellation or non-renewal is suspended until the order expires. Insurers may resume cancellations and non-renewals following the expiration of the order.
  • Pennsylvania: asks insurers to work with policyholders affected by COVID-19 by relaxing due dates for premiums payments, extending grace periods, waiving late fees and penalties, and allowing payment plans for premiums payments to otherwise avoid a lapse in coverage. Insurers should consider cancellation or non-renewal of policies only after exhausting other efforts to work with policyholders to continue coverage.
  • Rhode Island: insurers are requested to provide as much flexibility as possible to allow insureds to maintain their existing coverage by implementing and extending grace periods, allowing payment plans, and instituting whatever other measures are necessary to assist insureds in avoiding or delaying cancellation or a lapse of insurance coverage.
  • South Carolina: the DOI expects insurers to work with those citizens and business directly impacted to provide relief from certain insurance requirements. Relief may include extension of premium payment deadlines or additional time before non-renewals or cancellations become effective.
  • Tennessee: carriers provide as much flexibility as practicable during the public health crisis to help policyholders maintain existing coverage. Carriers should work with policyholders to address the timing of premium payments to delay any non-pay cancellation and collection activity until the end of the public health crisis.
  • Texas: carriers are expected to work with policyholders who may experience financial hardships due to the COVID-19. Carriers are encouraged to use grace periods for payments, temporary suspension of premium payments, payment plans, and other actions to allow continuing insurance coverage as appropriate.
  • Virginia: insurers should consider relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, and allowing payment plans for premium payments to otherwise avoid a lapse in coverage. Insurers should also consider cancellation or non-renewal of policies only after exhausting all other reasonable efforts to work with policyholders to continue coverage.
  • Washington: Insurers shall provide a grace period for nonpayment of premium and shall waive otherwise applicable charges and fees associated with nonpayment of premium, such as late fees and reinstatement fees. No insurer shall cancel a policy issued for nonpayment unless specifically directed to do so by the insured.
  • West Virginia: prohibits cancellation and non-renewal for reasons resulting from the coronavirus pandemic.
  • Wisconsin: insurers are encouraged to offer flexibility to insureds who are incurring economic hardship. This flexibility can include offering non-cancellation periods, deferred premium payments, premium holidays and acceleration or waiver of underwriting requirements.


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