3/27/2020 – Premium Payment Deferral Order Issued
View Order Issued By NCDOI
View Bulletin 20-B-06 Directed to Insurance Companies and Agencies
NC Insurance Commissioner Mike Causey activated an emergency declaration that will defer insurance premium payments for residents in all 100 counties. This order was activated as a result of President Trump’s March 25th Major Disaster Declaration for the State of North Carolina and applies to all insurance companies defined in the statute including health insurance, residential property and automobile insurance. The order will defer not only premium payments but will also defer statutory time requirements. Notices of cancellation, for example, will be deferred. Once the deferral expires, policyholders will be required to bring their payments current to avoid cancellation. This order will expire 60 days from the date of issuance, unless extended by the Commissioner.
This is probably the bulletin that causes the most confusion as it puts some very important consumer protections in place that impact premium payments, cancellations, non-renewals, claim filing, and many other policy requirements:
1) For policies insuring real property and contents located within counties included in the Commissioner’s order, there is a stay of the proof of loss for a time period not earlier than the expiration of the disaster proclamation, unless extended by the Commissioner.
2) Insurance companies shall give customers residing within these counties the option of deferring premium payments due during the time period covered by the disaster proclamation. The deferral period shall be thirty (30) days from the last day the premium payment may be made under the policy.
3) This 30-day deferral period applies to any statute, rule, or other policy provision that imposes a time limit on an insurer, an insured, claimant, or customer to perform any act during the time period covered by the order related to individuals that reside in these counties such as cancellation or non-renewal provisions.
4) This 30 day deferral period also applies to any time limitations imposed on insurers under the terms of a policy or contract or provisions of law related to individuals who reside within these counties.
Please contact your insurance carrier to communicate your desire to defer payments and confirm that this order applies to your specific situation.