The Washington D.C. Department of Insurance, Securities and Banking (DISB) issued a new insurance bulletin to notify all property and casualty insurers that for the duration of the coronavirus pandemic, all filed rate increases will be postponed, effective immediately.
The postponement of rate increases announced in the bulletin – called Insurance Bulletin 20-IB-3-11/23: Temporary Postponement of Property and Casualty Rate Increases During the Public Health Emergency – is meant to provide further relief to policyholders during the COVID-19 crisis.
This comes after several other emergency measures to combat the effects of the coronavirus pandemic have been enacted in Washington D.C. On March 11, 2020, Washington D.C. Mayor Muriel Bowser initially declared a Public Emergency and Public Health Emergency. The Council of the District of Columbia then enacted the COVID-19 Response Emergency Amendment Act of 2020, effective March 17, 2020, which temporarily amends the D.C. Family & Medical Leave Act (DCFMLA) to expand coverage for employees working in the District of Columbia.
Mayor Bowser also issued a Stay at Home Order, among others, to address the impact of the COVID-19 pandemic in the district. The Public Health Emergency was later extended by legislation until December 31, 2020.
DISB’s latest move to provide relief to policyholders during the pandemic grants the DISB commissioner emergency authority, including the powers to impose a “temporary postponement of premium increases.”
It announces that for the duration of the Public Health Emergency, the department will not approve any rate increases or permit any insurer to file and use rates without the commissioner’s prior approval. This temporary postponement of premium rate increases does not apply to filings to reduce premiums rates.
Source: Washington D.C. Department of Insurance, Securities and Banking
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