NJ Insurers to Provide Premium Relief
On May 12, 2020, the NJ Insurance Commissioner issued Bulletin No. 20-22 ordering all NJ Property & Casualty insurance companies to provide premium refunds, credits, reductions, dividends, or other type of premium adjustment to all New Jersey policyholders that have been adversely impacted by their risk being misclassified as a result of the COVID-19 pandemic. This order applies to all lines of personal and commercial insurance where the measures of risk have become substantially overstated as a result of the COVID-19 pandemic, including but not limited to:
- Private passenger automobile insurance;
- Commercial automobile insurance;
- Workers’ compensation insurance;
- Commercial multiple-peril insurance;
- Commercial liability insurance;
- Medical malpractice insurance.
Insurance carriers must notify their policyholders no later than June 15, 2020 of the amount of their premium reduction, but they have several options for how to determine the amount of and the method of providing the reduction. Because of this, we cannot yet determine how the order will be executed by each carrier and for each line of coverage. Stay tuned, and please reach out to your Borden Perlman representative if you have questions!