AAIS (the American Association of Insurance Services) has received approval from six state insurance departments for its health-emergency policy endorsement, clarifying coverage and cancellation provisions in the wake of COVID-19. To date, the endorsement has been approved in Arkansas, Arizona, Oregon, South Carolina, Tennessee, and Texas, as AAIS said it continues to respond to regulator concerns across the country.
AAIS has developed several sample policyholder notices and a model suspension of cancellation endorsement. The endorsement provides a temporary suspension for a specific timeframe during which a policy would not be cancelled due solely to the policyholder’s nonpayment of premium. The sample notices also address suspension of cancellation due to nonpayment of premium, the anticipated submission of pandemic-related claims, and good faith extensions of claim communication requirements and conditions.
According to AAIS General Counsel Robin Westcott, the endorsements and policyholder notices were developed in collaboration with state regulators “to respond to customer needs, to help underwriters better anticipate exposures in their policies, and bring stability to the insurance market.”
AAIS formed a COVID-19 Task Force to monitor regulatory developments related to the unprecedented coronavirus pandemic, and to provide advisory services designed to help address issues. In April, AAIS launched its COVID-19 Pandemic Resource Center to provide updates to insurance professionals and regulatory leaders, along with a library of sample forms, policyholder notices, and other materials.
The COVID-19 resources are available for general use by all insurance carriers, provided credit is attributed to AAIS as part of any proprietary adaptations. Carriers are advised to review sample materials and applicable regulatory positions carefully. Revisions, additions, and filing action may be necessary before use.
The AAIS Pandemic Resource Center includes department of insurance communications and dashboards, as well as regulatory and legislative updates pertaining to COVID-19’s impact on the insurance industry.
AAIS serves the property/casualty insurance industry with advisory services, including forms, rating information and data management.
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