Rate, Rule and Form Filing Activity in Response to COVID-19 Crisis

We have all seen the various headlines regarding what companies are doing in response to the COVID-19 Crisis. Many Departments of Insurance (“DOI”s) are encouraging companies to act quickly to provide relief to policyholders during these difficult times. Perr&Knight is closely monitoring the rate, rule and form filings submitted by insurance companies to the DOI in each jurisdiction, to the extent these filings are publicly available.
If you are interested in obtaining additional information on filings related to the COVID-19 crisis, please complete our contact form.
Here are samples of changes included in company filings:

• Allstate has made two changes:
  • Revising their rules and forms to include an exception to commercial activity exclusions to cover the delivery of food, medicine or other goods while a statewide Emergency Order is in effect related to the COVID-19 virus.
  • Adding a Shelter-in-Place Payback Endorsement to Allstate, Esurance and Encompass personal auto policies. Per the Allstate press release, “…customers will receive a Shelter-in-Place Payback. Most customers will receive 15% of their monthly premium in April and May, totaling more than $600 million.”

• American Family has announced that they are refunding $50 per insured vehicle to their personal auto policyholders for a total return of approximately $200 million. We have not seen any filings publicly available as of yet.

• Clear Blue Insurance Company temporarily removed late fee and reinstatement fee surcharges to provide relief to the insureds in their CB Rideshare Commercial Auto program that covers transportation network company drivers.

• Erie has filed a new Additional Payment, Gift Card and Gift Certificate Reimbursement Coverage. This provides reimbursement for the remaining balance of an unexpired local business gift card or gift certificate when the local business has permanently gone out of business. The coverage will be added to all ErieSecure Home, ErieSecure Condo and ErieSecure Tenant policies covering a primary residence, at no additional charge.

• Germantown Insurance Company is notifying homeowners policyholders with payment issues to arrange for delayed billing or switch to an installment payment plan. They have filed changes to their underwriting scorecard to avoid penalizing policyholders who make these changes.

• Silicon Valley-based insurance company Go announced that it is offering a 50% discount on auto insurance to all Essential Workers in Texas who are on the front lines of the COVID-19 crisis. See the press release at https://www.goclub.com/get.

• National American Insurance Company has added new Contractor and Subcontract Epidemic Bond Riders in response to the impact of COVID-19. These riders amend a surety bond to allow for equitable adjustments of contractual obligations if work is delayed, disrupted, suspended, or otherwise impacted as a direct or indirect result of any virus, disease, contagion, including but not limited to COVID-19.

• Next Insurance has submitted filings to implement a temporary relief measure regarding COVID-19 for insureds in their Commercial Auto and Liability (Errors and Omissions, Premises and Operations, etc.) programs. The Company’s intent is to reduce 25% of April’s 2020 premium for all insureds who purchased a policy prior to March 1, 2020.

• Utica National group has expanded the eligibility for Commercial Auto lay-up credits to all risks/vehicle types. The expanded eligibility is intended for businesses that plan to take vehicles out of service due to loss or reduction in business due to the COVID-19 pandemic.

• Several companies are filing COVID-19 related leave of absence endorsements for their medical malpractice policies to help their insureds whose employment may be affected due to COVID-19 related lay-offs, office closures, and illness, among other things.

If there is anything that Perr&Knight can do to assist your company with any filings, please complete our contact form at https://www.perrknight.comcontact/.