Thursday, April 9, 2020
New Jersey Governor Murphy has signed an Executive Order extending the grace period for residents unable to pay their insurance premiums because of a loss of income or other negative impact as a result of the COVID-19 emergency.
The Governor’s Executive Order requires:
A minimum 60-day grace period for health and dental insurance policies, and 90-days grace for home and auto insurance, renters insurance, life insurance, and for insurance premium-financing arrangements among others.
Additionally, this order makes clear that all claims covered by the insurance policy must be paid out to those who are within these grace periods. In addition, insurers cannot demand repayment of unpaid premiums in a lump sum at the end of the grace period, but rather they must spread these back payments out over the remainder of the insurance term.
Finally, insurers are required to provide each policyholder with an easily readable written description of the terms of the extended grace period.
More information will be available from the State when the full text of the Executive Order is published.