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All You Ever Wanted to Know About Insurance

FAQs on Connecticut’s grace period for insurance premium payments

Who does the order apply to?
The executive order applies to all insurers licensed or regulated by the Connecticut Insurance Department.
What must insurers do?
All insurers must give policyholders unable to pay their premiums due to COVID-19 related financial hardship 60 days before
cancelling the policy for nonpayment of premium.
What lines of insurance does it apply to?
The executive order applies to all lines of insurance, including policies from non-admitted carriers and commercial policies.
What do insurance producers need to do?
The executive order does not require producers to do anything to comply with the order. Producers will presumably have a role
in administering the order and advising their clients.
Do insurance producers need to provide notice to policyholders?
The executive order does not require producers to provide notice of the grace period to all policyholders. That does not
mean producers should not consider notifying their clients, only that the order does not mandate notice.
Does it apply to all policyholders?
No, policyholders must provide an affidavit or other statement acceptable by the insurance company to demonstrate COVID19-related financial hardship.
What is a COVID-19-related financial hardship for individual policyholders?
Individual insurance policyholders laid off, furloughed or fired from employment or otherwise sustaining a significant loss in
revenue may submit an affidavit or other acceptable statement to their insurers to qualify for the 60-day grace period.
What is a COVID-19-related financial hardship for a business?
Businesses must demonstrate that they were required to close or significantly reduce operations or suffered a significant revenue
loss as a result of the COVID-19 pandemic. This is done through an affidavit or statement acceptable to the insurer to qualify
for the 60-day grace period.
What business policies does the grace period apply to?
The grace period applies to businesses that are group policyholders, have group insurance and/or have property & casualty
insurance policies

Does it apply to health insurance policies?
Yes, the grace period applies to all policies.
Does it apply to credit-financed policies?
While the executive order does not specifically apply to credit-financed policies, it most likely does.
Is the grace period automatic?
No, policyholders must provide information to the insurance company to qualify. Otherwise, the normal policies for
cancellation of policies for nonpayment of premium apply.
Does this require insurance companies to renew policies?
No, although the insurance company may need to extend the policy for several months to comply.
Do insurance companies that voluntarily gave policyholders a 60-day grace period for nonpayment of premium need to
extend the grace period?

Insurance companies that provided a 60-day grace period in March 2020 will be deemed to have complied with the executive order.
Do policyholders need to be in good standing to qualify?
Policyholders must have been in good standing on March 12, 2020, to qualify for the grace period.
Does the executive order prevent insurance companies from cancelling or non-renewing policies for any reason?
No, the order is limited to cancellation or non-renewal for nonpayment of premium. An insurer may still cancel or non-renew a
policy for other allowable reasons.
How long will policyholders have to make the premium payments?
The executive order has no mandated repayment period. This should be discussed with insurance companies.
Is this premium forgiveness?
No, policyholders will still need to make the premium payments for the 60-day grace period. The executive order prohibits the
cancellation of the policy but does not forgive the payments.
Is this different from other state’s grace periods?
Yes, New York and New Jersey have both issued grace periods for policyholders financially impacted by the COVID-19
pandemic that apply to different policies with different repayment terms.