Insurance Commissioner Orders 60-Day Grace Period for Policy Premiums

Written by Apartment Management Magazine on . Posted in Uncategorized

Insurance Commissioner Orders 60-Day Grace Period for Policy Premiums

On March 18, 2020, in response to the substantial disruption caused by the COVID-19 pandemic, California Insurance Commissioner Ricardo Lara issued a Notice requesting all insurance companies to provide policyholders with a grace period of at least 60 days to pay insurance premiums.  That means, insurance policies will not be cancelled unless and until 60 days past the payment due date.

The grace period covering late payment is now in effect until July 14, 2020.  After July 14, 2020, if policy holders are unable to make their insurance premiums, they will be given a ten (10) day grace period before the policy is cancelled.

Insurance Commissioner Lara warns; however, that the grace period is not a waiver or forgiveness of any premium due, and it is only an extension of time in which to pay premiums. The grace period in applies only to cancellation or non-renewals attributed to a failure to pay premiums during the applicable grace period. If a policy is to be cancelled or non-renewed for any other allowable reason, the cancellation or non-renewal may be made pursuant to statutory notice requirements and for legally recognized reasons.

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