Executive Order Extends Certain Insurance Premium Deadlines

Governor Murphy has signed Executive Order 123 which reads in part:

All property and casualty insurance companies, life insurance companies, insurance premium finance companies, health insurance companies, health maintenance organizations, health service corporations and other entities issuing health or dental benefits plans in this State (collectively, “subject entities”) shall not cancel during the emergency grace period any policy or contract as a result of nonpayment as defined as follows: a. In the case of property and casualty insurance companies, life insurance companies, and insurance premium finance companies, for a period of at least 90 days, during which period claims shall be paid without regard to prior nonpayment of premium by the policyholder; and b. In the case of health insurance companies, health maintenance organizations, health service corporations and other entities issuing health or dental benefits plans in this State, for a period of at least 60 days, during which period claims shall be paid without regard to prior nonpayment of premium by the policyholder and the cost of which claim may not be recouped during or after the emergency grace period from the policyholder based upon the nonpayment of the premium.

The order also gives the Commissioner of Banking and Insurance the authority to extend the emergency grace period.