Important Information About Life Insurance Premiums

Thursday, April 16, 2020

A recent Executive Order issued by Governor Cuomo, in conjunction with the New York State Department of Financial Services (DFS), extends grace periods for insurance premiums due and gives you other rights under your life insurance policy or annuity contract if you can demonstrate financial hardship as a result of the COVID 19 pandemic. These changes are currently in effect but are temporary. Please check the Department’s website for updates.

Insurance Payments—Grace Period

If you can demonstrate financial hardship as a result of the COVID-19 pandemic, your insurer must extend to 90 days the applicable grace period for the payment of premiums and fees under your life insurance policy or annuity contract. If you do not make a timely premium payment and can demonstrate financial hardship as a result of the COVID-19 pandemic, your insurance carrier may not impose any late fees relating to the premium payment or report you to a credit reporting agency or a debt collection agency regarding such premium payment.

Catching up on Overdue Insurance Payments

The regulations also require your insurer to permit you to pay the overdue premium over a 12-month period if you did not make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic and can still demonstrate financial hardship as a result of the COVID-19 pandemic. This also applies if the insurance carrier sent you a nonpayment cancellation notice prior to March 29, 2020.

How to Demonstrate Financial Hardship

If you are unable to make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic, you may submit to your insurance carrier a statement that you swear or affirm in writing under penalty of perjury that you are experiencing financial hardship as a result of the COVID-19 pandemic. This statement shall be accepted as satisfactory proof by your carrier. Such statement is not required to be notarized.

Questions

If you have any questions regarding your rights under the Executive Order or regulations, please contact your insurance carrier directly or Amsure.

Be well,

Matthew D’Abate