A recent Bulletin issued by Marlene Caride, Commissioner of the Department of Banking and Insurance (“Department”), in response to recent Executive Orders issued by Governor Phil Murphy, requires insurance companies to extend grace periods and give you other rights under your life insurance policy or annuity contract if you can demonstrate financial hardship as a result of the novel coronavirus (“COVID‐19”) pandemic. A policyholder may elect this 90‐day grace period retroactively on April 1, 2020 or opt for the grace period to begin on May 1, 2020.
Insurance Payments ‐ Grace Period
If you can demonstrate financial hardship as a result of the COVID‐19 pandemic, we must extend the applicable grace period for the payment of premiums and fees under your life insurance policy or annuity contract to 90 days. If you do not make a timely premium payment and can demonstrate financial hardship as a result of the COVID‐19 pandemic, we 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. To be eligible for the extended grace period, your policy must have been in good standing (in force or in the contractual grace period) on March 1, 2020.
Catching up on Overdue Insurance Payments
The regulations also require us 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.
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 us a statement that you swear or affirm, in writing under penalty of perjury, that you are experiencing financial hardship due to COVID‐19, which we will accept as satisfactory proof. Such statement need not be notarized.
If you have any questions; or if you would like to discuss billing or make alternative payment arrangements, or if you have any questions about the information listed above, please contact us at 1‐800‐533‐0472, ext 725‐5087 or by email: email@example.com.
This was last updated: 04-22-2020