Yesterday, the NYS Department of Financial Services (DFS) issued a new emergency regulation, which is a slightly revised version of the March 30th emergency insurance regulation imposing a moratorium on policy cancellations and proving a 12-month grace period for repayment. The previous emergency regulation expired on June 28th, and the replacement emergency regulation is in effect until the expiration of Executive Order 202.13, currently July 6th.
The new emergency regulation is substantially the same as the original emergency regulation. Importantly, however, the new regulation does not include the requirement that producers notify customers of the regulation’s provisions. Big I NY had urged the DFS to eliminate this requirement, as it would be duplicative, significantly burdensome to agencies, and of little to no value to customers. We applaud the DFS for making this common-sense change.
Additional changes have minimal effect on agents and customers. The new regulation adds additional clarification that customers are eligible for only one 60-day moratorium per premium or premium finance payment. This is consistent with the DFS’s public guidance and Big I NY’s guidance to our members.
Contact Scott Hobson with questions.