Posted Friday, April 10th, 2020
Gov. Phil Murphy has signed Executive Order No. 123, extending grace periods during which certain insurance companies, including health insurers, life insurers, and property and casualty insurers, will not be able to cancel policies for nonpayment of premiums during the COVID-19 crisis.
“We know the stringent measures we’ve put in place to combat COVID-19 have resulted in a loss of income and financial hardship for many,” said Governor Murphy. “However, no New Jerseyan deserves to lose their insurance during this emergency, and we cannot leave people in a weaker position once it ends.”
Governor Murphy’s Executive Order makes the following changes:
Extends minimum grace periods
Requires insurance companies to pay claims during the grace period
Ensures that unpaid premiums are made payable over a lengthy period
To ensure that policyholders are not required to make a lump sum payment on unpaid premiums at the end of the grace period, any unpaid premium will be amortized over the remainder of the policy term or a period of up to 12 months, as appropriate and as directed by the Commissioner of Banking and Insurance.