Dear clients of Shank & Falvey Inc., Buchanan & Butler Inc., Rose Shea Associates and Bernardo Agency:
I hope this message finds all of you and your families safe and healthy. This is truly an unprecedented time for all of us and we want you to know we are here for you. All our offices are staffed and we’re here to serve you every day.
The NYS Department of Financial Services (NYS Insurance Department) has mandated that we send you this notice. This follows Governor Andrew M. Cuomo’s Executive Order No 202.13. A full copy of the Insurance Department’s notice and the Governors Executive Order is included below. The critical points for you to know are:
- Insurance companies cannot cancel your policy because you can’t pay your bill between March 29, 2020 and May 28th, 2020.
- Your premiums will eventually have to be paid but the insurance companies are required to make payment arrangements for you. Payment arrangements differ by company.
- Insurance companies are required to waive any late payment fees and not report late payments to credit rating agencies during this 60-day period.
- If you are a business and your policy is financed, finance companies are required to follow the same rules as insurance companies.
Our staff is here to answer questions for you and direct you to the proper people at the insurance companies to make special payment arrangements. We cannot make the special payment arrangements, only an insurance company employee is permitted to do that for you. Please feel free to contact the companies directly for special payment arrangements.
Some of you receiving this message may have previously asked us not to send you any email. The Governor’s Order specifically directs us to send this notice to everyone, whether or not you previously opted out. I apologize for the inconvenience, just following the Governor’s orders.
We are here to help you during this difficult time. Please contact us if you need help. As always, thank you for your business. We truly appreciate the opportunity to serve you.
Charles P. Shank, CIC
Shank & Falvey Inc.
Notice of Executive Order Issued by Governor Cuomo
A recent Executive Order issued by Governor Cuomo, together with recent amendments to the insurance and banking regulations (the “regulations”) issued by the New York State Department of Financial Services (“Department”), extend grace periods and give you other rights under your life insurance policy or annuity contract if you can demonstrate financial hardship as a result of the novel coronavirus (“COVID-19”) pandemic. These grace periods and rights are currently in effect but are temporary, though they may be extended further. Please check the Department’s website at https://www.dfs.ny.gov/consumers/coronavirus for updates.
- A copy of the Executive Order and regulations can be found at https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency, and https://www.dfs.ny.gov/system/files/documents/2020/03/re_consolidated_amend_pt_405_27a_27c_new_216_text.pdf, respectively.
Insurance Payments – Grace Period
If you can demonstrate financial hardship as a result of the COVID-19 pandemic, your insurer must extend to 90 days the applicable grace period for the payment of premiums and fees under your life insurance policy or annuity contract. If you do not make a timely premium payment and can demonstrate financial hardship as a result of the COVID-19 pandemic, your insurer may not impose any late fees relating to the premium payment or report you to a credit reporting agency or a debt collection agency regarding such premium payment.
Catching up on Overdue Insurance Payments
The regulations also require your insurer to permit you to pay the overdue premium over a 12-month period if you did not make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic and can still demonstrate financial hardship as a result of the COVID-19 pandemic. This also applies if the insurer sent you a nonpayment cancellation notice prior to March 29, 2020.
Policies Financed by Premium Finance Agencies – Grace Period
If your life insurance policy or annuity contract has been financed through a premium finance agency, and you do not make an installment payment, the premium finance agency may not cancel your life insurance policy or annuity contract for a period of at least 90 days, including any contractual grace period, if you can demonstrate financial hardship as a result of the COVID-19 pandemic, and subject to the safety and soundness of the premium finance agency. In addition, if you do not make a timely installment payment to the premium finance agency and can demonstrate financial hardship as a result of the COVID-19 pandemic, the premium finance agency must extend the due date for the installment payment by at least 90 days, may not impose any late fees relating to that installment payment, and may not report you to a credit reporting agency or a debt collection agency regarding that installment payment.
Catching up on Overdue Payments to Premium Finance Agencies
If you do not make a timely installment payment to the premium finance agency due to financial hardship as a result of the COVID-19 pandemic, the premium finance agency must permit you to pay the installment payment over a 12-month period if you can still demonstrate financial hardship as a result of the COVID-19 pandemic, subject to the safety and soundness of the premium finance agency. This also applies if the premium finance agency issued a non-payment cancellation notice prior to March 29, 2020.
How to Demonstrate Financial Hardship
If you are unable to make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic, you may submit to your insurer or premium finance agency, as applicable, a statement that you swear or affirm in writing under penalty of perjury that you are experiencing financial hardship as a result of the COVID-19 pandemic, which the insurer or premium finance agency, as applicable, shall accept as satisfactory proof. Such statement is not required to be notarized.
If you have any questions regarding your rights under the Executive Order or regulations, please contact your insurer, broker, or premium finance agency.
Please contact us here at Shank & Falvey Insurance if you have any questions or if there is anything we can do to assist you during this time. Thank you.