COVID-19 US Insurance Regulatory Department Updates - June 09, 2020 - Insurance Laws and Products

Due to the volume of state insurance regulatory activity during the COVID-19 outbreak, the first section of this Legal Update now includes a topical overview that summarizes the major categories of actions taken by each state (e.g., all states that have taken action regarding recommended or mandated property/casualty premium refunds), with hyperlinks to the fuller descriptions of each of those actions in the detailed chart that follows.

There has been significant state insurance regulatory activity related to the novel coronavirus ("COVID-19") pandemic – which continues to evolve. State insurance regulatory authorities have issued emergency rules and regulations, notices and bulletins, containing both directives and guidance, as well as requesting information related to the COVID-19 outbreak. These regulatory actions vary from state to state, for example:

Some relate only to specific lines of insurance - such as health insurance, travel insurance and commercial property/casualty insurance - while some are broadly directed at all regulated insurance entities.
Some require an affirmative response to a state insurance regulator before a specified date, while others simply provide guidance or clarify the insurance department's position on issues related to the COVID-19 outbreak.

This Legal Update provides a chart that summarizes the regulatory actions of US insurance regulatory authorities with respect to the COVID-19 outbreak, noting items that have been added since our last Update.

Any questions or comments with respect to the information contained in this survey should be directed to Kara Baysinger at kbaysinger@mayerbrown.com or (415) 874-4256, Stephanie Duchene at sduchene@mayerbrown.com or (213) 229-5176, Matthew Gaul at mgaul@mayerbrown.com or (212) 506-2237, Larry Hamilton at lhamilton@mayerbrown.com or (312) 701-7055, Sanjiv Tata at stata@mayerbrown.com or (212) 506-2205 or Philip Goldstein at pgoldstein@mayerbrown.com or (212) 506-2693.

MAJOR CATEGORIES OF REGULATORY ACTIONS

This chart accompanies the detailed summary of all regulatory updates (including bulletins and emergency orders) issued by insurance regulatory authorities with respect to the recent COVID-19 outbreak. Major categories of the types of actions taken by such authorities are set out below, together with links to descriptions of pertinent guidance included in the detailed summary.

Key of Categories of Regulatory Actions

The categories set out below include the following types of actions:

Health:

Support for COVID-19 Diagnosis/Treatment: includes, among other actions, (i) coverage/waiver of payment for COVID-19 testing, (ii) coverage/waiver of payment for COVID-19 immunizations (when developed), (iii) suspension of preauthorization reviews for COVID-19-related treatments and (iv) relaxation of out-of-network requirements for COVID-19 related treatments.
Maintenance or Increase of Access to Health Plans: includes, among other actions, (i) allowing employees to remain on group health plans regardless of eligibility thresholds and (ii) establishment or extension of special enrollment periods.
Accommodations to Stay-at-Home Orders: includes, among other actions, (i) relaxation of restrictions on telemedicine reimbursement and (ii) easing of restrictions from purchasing of prescription drugs.

Medical Malpractice: includes, among other actions, (i) extension of coverage to retired or other returning medical professionals who are responding to the crisis and (ii) re-rating of doctors whose practices have been reduced or eliminated by stay-at-home orders.

Property and Casualty:

Special Coverage Expansion: includes, among other actions (i) temporarily expanding personal auto to cover commercial deliveries, (ii) allowing travel insurance to cover any COVID-19 related trip cancellations, (iii) increased workers compensation coverage for first responders and (iv) easing of unemployment insurance restrictions.
Recommended or Mandated Premium Refunds: includes, among other actions (i) guidance recommending or mandating premium refunds for various lines of business based on reduced risk and (ii) allowing mid-term self-audits for certain commercial policies and the corresponding adjustment of premium.
Action Regarding Business Interruption Coverage: includes, among other actions (i) requiring companies to provide information regarding business interruption coverage and its limits and (ii) draft legislation which would require companies to pay business interruption claims despite virus exclusions.
Easing of Credit/Financial Rating Underwriting Restrictions

All Lines:

Accommodations to Policyholder Financial Hardship: includes, among other actions (i) easing or suspending premium due dates, (ii) suspending cancellations due to non-payment of premium, (iii) waiver of late fees, (iv) extensions for grace periods and (v) delay of premium increases.
Accommodations to Stay-at-Home Orders: includes, among other actions, allowing for virtual underwriting and adjustment of claims
Easing of Regulatory Filing Requirements: includes, among other actions, (i) extension of deadlines for various insurer and producer filings, (ii) temporary waiver of hard-copy paper filings, (iii) temporary suspension of on-site examinations and (iv) issuance of temporary producer licenses.

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Originally published June 9, 2020.

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