Commissioner Lara Orders Insurance Companies to Refund Premiums to Drivers, Businesses Affected by COVID-19 Emergency
LOS ANGELES, Calif. — Insurance Commissioner Ricardo Lara ordered insurance companies to return insurance premiums to consumers and businesses and provide much-needed financial relief during the COVID-19 emergency. The Commissioner’s Bulletin covers premiums paid for at least the months of March and April — including the month of May if “shelter in place” restrictions continue — on at least six different insurance lines:
- Private Passenger Automobile
- Commercial Automobile
- Workers’ Compensation
- Commercial Multi-Peril
- Commercial Liability
- Medical Malpractice
- And any other insurance line where the risk of loss has fallen substantially as result of COVID-19 pandemic
“With Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss,” said Commissioner Lara. “Today’s mandatory action will put money back in people’s pockets when they need it most.” The order was given on April 13, 2020.
The Commissioner’s Bulletin requires insurance companies to provide a premium credit, reduction, return of premium, or other appropriate premium adjustment as soon as possible, and no later than August 2020. The expectation now is that each insurance company will be working on their response to the order. It is not known yet how insurance companies will choose to respond.
According to a UC Davis Special Report on the Impact of COVID-19 on California Traffic Accidents, reduced driving has resulted in fewer accidents, injuries, and fatalities on public highways and roads. Falling payroll and receipts due to closure orders have also dramatically reduced risk of a liability loss for businesses.
“I applaud efforts made by insurance companies to date that have offered grace periods and flexibility to consumers and businesses during this national emergency,” added Commissioner Lara. “We must do more to help our hard-working families and small businesses.”
Please know that we at United Agencies are closely monitoring the events on a daily basis and stand ready to pursue any discounts and refunds made available. Do not hesitate to Contact Us with any questions or to discuss additional ways we can pursue premium reductions as a consequence of reduced business because of the pandemic.
Please remain safe and healthy during this time.
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