Life Quotes, Inc. News Release - 04/07/2020
Goss, Executive Vice President
(630) 515-0170, ext.
Urgent Message for New York
Policyholders Regarding COVID-19
DARIEN, Illinois (April 07, 2020) – On
March 30, 2020, the New York Department of Financial Services
(DFS) issued an emergency regulation requiring insurers to
grant premium payment relief to New York consumers and small
businesses experiencing financial hardship due to COVID-19.
A life insurer shall extend to 90 days the applicable
grace periods for the payment of premiums and fees set forth
in group life insurance policies and certificates, for any
life policyholder who demonstrates financial hardship as a
result of the COVID-19 pandemic. Insurers are required to
accept a written attestation from a policyholder as proof of
financial hardship as a result of COVID-19. The emergency
regulation also provides that, with respect to any
policyholder that did not timely pay premium and who attests
to experiencing financial hardship due to COVID-19: insurers
may not impose any late fees relating to such late premium
payments; insurers may not report the policyholder to a credit
reporting agency or refer the policyholder to a
debt-collection agency with respect to such late premium
payments; and insurers must permit affected policyholders who
do not make a timely premium payment, and who attest to still
experiencing financial hardship due to COVID-19, to pay such
late premium over a 12-month period. A copy of section 405.6
of Part 405 of Title 3 of this order is presented below.
If you receive premium billing directly from your
insurance company, you will receive a notice of the provisions
of the emergency regulation and a toll-free number that you
can call to discuss billing and make alternative payment
arrangements for the duration of this emergency order. If you
have any questions for Life Quotes, contact Policyholder
Services at (630) 473-3915.
A new Section 405.6 is
added to Title 3 as follows:
Section 405.6. No cancellation for financial hardship;
- This section is promulgated pursuant to Executive
Order 202.13 and for the duration specified therein, which
may be extended.
- When a premium finance agreement contains a power
of attorney or other authority enabling the premium finance
agency to cancel any insurance contract or contracts listed
in the agreement, and an insured does not make an
installment payment, the premium finance agency shall not
cancel the insurance contract or contracts for a period of
at least 60 days, including any contractual grace period,
for a property/casualty insurance contract or for a period
of at least 90 days, including any contractual grace
period, for an insurance contract providing life insurance,
if the insured can demonstrate financial hardship as a
result of the COVID-19 pandemic, and subject to the safety
and soundness of the premium finance agency.
- With regard to an insured who does not make a
timely installment payment to the premium finance agency
and can demonstrate financial hardship as a result of the
COVID-19 pandemic, a premium finance agency:
- shall extend the due date for such installment
payment by at least 60 days for a property/casualty
insurance contract and at least 90 days for an insurance
contract providing life insurance, and shall not impose
any late fees relating to such installment payment; and
- shall not report the insured to a credit
reporting agency or refer the insured to a debt
collection agency with respect to such installment
- A premium finance agency shall, subject to the
safety and soundness of the premium finance agency, permit
an insured who did not make a timely installment payment to
the premium finance agency due to financial hardship as a
result of the COVID-19 pandemic, including an insured to
whom the premium finance agency issued a non-payment
cancellation notice prior to the effective date of the
Executive Order, and who can still demonstrate financial
hardship as a result of the COVID-19 pandemic, to pay such
installment payment over a 12-month period. Within ten
business days following the promulgation of this section,
the premium finance agency shall mail or deliver a copy of
the information contained in paragraph (1) of this
subdivision to each insured for whom the premium finance
agency holds a power of attorney or other authority, as
described in paragraph (1) of this subdivision, in
connection with a property/casualty insurance contract or
insurance contract providing life insurance. A premium
finance agency also shall:
- within ten business days following the
promulgation of this section, provide notice with each
installment payment bill of the provisions of this
section and a toll-free number that the insured may call
to discuss billing and make alternative payment
- notify insurance producers and any third-party
administrators with whom or which the premium finance
agency does business of the provisions of this section.
- A licensed insurance producer who services an
in-force contract of insurance providing life insurance or
who procured the property/casualty insurance contract for
the insured, which contract is listed in a premium finance
agreement, shall mail or deliver notice to the insured of
the provisions of this section and Part 229 of Title 11
within ten business days following the promulgation of this
- In the case of a property/casualty insurance
contract where the property insured does not make the first
installment payment to the premium finance agency after the
conclusion of the 60-day period described in paragraph (1)
of this subdivision and the premium finance agency cancels
the property/casualty insurance contract based on such
nonpayment at any time prior to the next succeeding
installment payment, the property/casualty insurer shall
return to the premium finance agency for the benefit of the
property insured, in accordance with the terms of the
property/casualty insurance contract but no later than 60
days after the effective date of such cancellation, the
gross unearned premiums that are due under the
property/casualty insurance contract on a pro rata basis,
calculated as if the property/casualty insurance contract
had been canceled 60 days prior to the effective date of
- Solely for the purposes of this section, a premium
finance agency shall accept a written attestation from an
insured as proof of financial hardship as a result of the
- Nothing shall prohibit an insured from exercising any
right the insured has to voluntarily cancel an insurance
- This section shall not apply to a settled policy.
- For the purpose of this section:
- Credit reporting agency means a reporting
agency that regularly engages in the practice of assembling
or evaluating and maintaining, for the purpose of
furnishing credit reports to third parties bearing on a
person's credit worthiness, credit standing, or credit
capacity, and credit account information from persons who
furnish that information regularly and in the ordinary
course of business.
- COVID-19 means the coronavirus disease 2019.
- Debt collection agency has the meaning set
forth in General Business Law section 600.
- Executive Order means Executive Order
- Insurance producer has the meaning set forth
in Insurance Law section 2101(k).
- Insured means a life insured or a property
- Insurer means a life insurer and an insurer
that writes a property/casualty insurance contract,
including an unauthorized insurer that sells insurance
through a licensed excess lines broker and is subject to
Insurance Law article 34.
- Late fee means a fee associated with an
installment payment to a premium finance agency that is
made at a time later than the installment payment due date,
but prior to both insurance contract cancellation and the
time in which a premium finance agency may reject the
- Life insured means the person to whom a life
insurance policy, annuity contract, or fraternal benefit
society certificate is issued, including a certificate
holder under a group insurance policy or annuity contract.
- Life insurer means an insurer authorized to
write life insurance or annuities and an authorized
fraternal benefit society.
- Person means an individual or business
- Property/casualty insurance contract means
an insurance contract that provides a kind of insurance set
forth in Insurance Law section 1113(a)(16), (17), (20),
(21), (24), (26), or (30) or that is subject to Insurance
Law section 1116 or articles 34, 53, 54, or 55 or Workers'
Compensation Law section 54 or 226.
- Property insured means the individual or
small business to whom a property/casualty insurance
contract is issued, including a certificate holder under a
group insurance contract.
- Settled policy has the meaning set forth in
Insurance Law section 7802(t).
- Small business means any business that is
resident in this State, is independently owned and
operated, and employs 100 or fewer individuals.
Copyright ©1984-2020 Life Quotes, Inc.,
8205 South Cass Avenue, Suite 102, Darien, Illinois. Life Quotes, Inc.
and certain of its personnel are licensed as insurance agents, brokers
or producers in all states. CA agent #0A13858, LA agent #200696, MA
agent #1746830. CA under agency #0827712 dba Quotes for Life Insurance
Agency, LA agency #205078 dba Life Quotes Inc, UT agency #90093. All
rights reserved. Telephone (630) 515-0170. Founded 1984.