New Jersey Broker COVID-19 Guidance
The State of New Jersey Department of Banking and Insurance has issued Bulletin No. 20-15 directing all insurance carriers to provide their policyholders who may be experiencing financial hardship due to COVID-19 with 90-day grace period to pay insurance premiums so that policies are not cancelled for nonpayment. This grace period to begin either on April 1, 2020 or May 1, 2020. In response, Hiscox has made the decision to extend the grace period for all impacted New Jersey policyholders until August 1, 2020.
In addition, the Bulletin allows policyholders to request premiums that were due but not paid during the grace period to be paid over the remainder of the current policy term or up to 12 months in up to 12 equal installments, whichever is longer.
As such, Brokers with New Jersey policyholders should:
- Review Bulletin No. 20-15 with your legal counsel;
- Communicate to any New Jersey policyholders with an in-force policy during the time period of the Bulletin that Hiscox will not cancel or non-renew any policies for non-payment until August 1, 2020;
- Where a qualifying Hiscox New Jersey policyholder requests for payments that were due during the grace period to be paid over the remainder of the policy term or up to 12 months in up to 12 installments, then as the party that manages collections from that policyholder, make the required arrangements to collect delinquent payments per the regulatory requirements; and
- Notify Hiscox of your extension arrangement with the policyholder via the link below. This will allow us to follow up with your appropriate contact to coordinate our collections expectations in tandem with those you have arranged with the policyholder.
Need Additional Help?
If you have any additional questions related to the recent New Jersey regulatory initiatives for premium extensions, please call us at: 1-855-975-6268