Coronavirus (COVID-19) Information for Consumers
Life/Annuity/Credit Emergency Regulations FAQs
On March 30, 2020, the New York State Department of Financial Services (the “Department”) promulgated an emergency regulation (the “Emergency Regulation”) to provide relief to New York consumers experiencing financial hardship due to COVID-19. The Emergency Regulation, together with Executive Order 202.13 issued by Governor Cuomo, extend grace periods and give consumers other rights under their credit life insurance policy, credit disability insurance policy, credit unemployment insurance policy, life insurance policy, annuity contract, fraternal benefit society certificate, or group insurance or annuity contract certificate if they can demonstrate financial hardship or an inability to timely exercise rights or benefits as a result of COVID-19.
On June 28, 2020, upon the expiration of the Emergency Regulation, the Department promulgated an emergency regulation extending the relief provided in the Emergency Regulation (the “Extended Emergency Regulation” and, together with the Emergency Regulation, the “Emergency Regulations”).
The Emergency Regulations and Executive Order apply to any individual or business entity to whom a life insurance policy, annuity contract, fraternal benefit society certificate, or certificate under a group life insurance policy or annuity contract is issued. They also apply to any individual or business entity to whom a credit life insurance, credit disability insurance, or credit unemployment insurance policy or certificate is issued.
The Emergency Regulations and Executive Order extend to ninety (90) days the grace period for the payment of premiums and fees set forth in the policy, contract, or certificate if you demonstrate financial hardship as a result of the COVID-19 pandemic. During the 90-day extended grace period, the policy, contract, or certificate will not terminate due to non-payment of premium or fees.
Yes. The extension applies to all in force policies, regardless of whether you were already in a grace period on March 30, 2020, if you demonstrate financial hardship due to COVID-19. The existing grace period would be extended to ninety (90) days, measured from the premium or fee payment due date when the existing grace period started.
The Emergency Regulations provide that, if you failed to make a timely premium payment due to financial hardship as a result of COVID-19, the insurer must give you the opportunity to repay such late premium in twelve (12) monthly installments if you can still demonstrate financial hardship due to COVID-19. In that situation, the insurer cannot terminate the policy, contract, or certificate immediately after the expiration of the extended grace period based on your past failure to pay the premium due to financial hardship as a result of COVID-19.
The Emergency Regulations and Executive Order extend to ninety (90) days any time limits in your policy, contract, or certificate for the exercise of rights or benefits if you are unable to timely exercise rights or benefits as a result of the COVID-19 pandemic.
For purposes of the Emergency Regulations and Executive Order, you may submit to your insurance company 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. The statement is not required to be notarized.
For purposes of the Emergency Regulations and Executive Order, you may submit to your insurance company a statement that you swear or affirm in writing under penalty of perjury that you are unable to timely exercise the right or benefit as a result of the COVID-19 pandemic. The statement is not required to be notarized.
No. If you obtained premium payment relief for a particular policy under the Emergency Regulation, you cannot receive further relief under the Extended Emergency Regulation.
The Emergency Regulation was in effect from March 30, 2020 to June 28, 2020. The Extended Emergency Regulation expired on July 6, 2020. Please check the Department’s website at https://www.dfs.ny.gov/consumers/coronavirus for updates.