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Apr 17
DFS: 60-Day Moratorium Starts On Day Policy Could Have Ended

A new “frequently asked questions” (FAQ) page​ on the New York State Department of Financial Services website clarified the current moratorium on terminating and changing insurance policies.

  • IF the terms of the policy permit the carrier to cancel, non-renew or conditionally renew it on a specific date;
  • AND the policyholder can demonstrate financial hardship because of the pandemic;
  • THEN the 60-day moratorium begins on that date.

For example, suppose the insurer sent a non-renewal notice on February 1. The policy will expire April 16. The policyholder demonstrates financial hardship. The insurer must delay the non-renewal until June 15. It may terminate coverage at that time.

The FAQs also clarified that:

  • The requirements apply to policies that were in effect on March 30, 2020
  • The requirements expire when the governor's executive order does on April 28. Big I New York has asked the department to confirm that the governor's extension of NY PAUSE did not change the regulation's expiration date.

For example, an insurer may non-renew a policy that is scheduled to expire on May 1.

Check for further updates on the pandemic.


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