In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling regulatory updates to provide clients easy access to information during this unprecedented time. If you have any questions on the subject matter below, do not hesitate to reach out. The information below relates to state and federal bulletins, emergency orders, pending/enacted legislation, and other related actions taken in response to the COVID-19 pandemic.

All Lines of Insurance

New York: On June 3, the Excess Line Association of New York (ELANY) issued Bulletin No. 2020-31, stating that the COVID-19 cancellation/nonrenewal moratorium, premium payment grace period, and notice requirements contained in Executive Order 202.13 and the Department of Financial Services’s Emergency Regulation have been extended and will now remain in effect through June 28, 2020 unless further extended. On May 29, New York issued Executive Order 202.35 which extended the requirements of Executive Order 202.13.

Pennsylvania: On June 2, the Pennsylvania Insurance Department (“Department”) issued Notice 2020-16 to all licensees of the Pennsylvania Insurance Department to provide guidance about in-person operations and sales for insurance licensees in counties moving to the green phase of reopening in the Commonwealth. Telework and remote operations are strongly encouraged in counties that have been designated to move to the green phase, however, in instances where that is not feasible, insurance licensees will be permitted to conduct in-person operations, including in-person sales, with restrictions to protect licensees and their employees and consumers. Licensees must adhere to the updated guidance, building safety and business safety orders issued by Governor Tom Wolf that details procedures businesses must follow to conduct in-person operations in counties slated to move to the green phase of reopening.

Health Insurance

Vermont: On June 2, the Vermont Department of Financial Regulation issued Emergency Rule H-2020-04-E, regarding the suspension of prescription drug deductibles for preventive medications. The Emergency Rule is promulgated pursuant to Act 91 of 2020 and in response to the State of Emergency declared by the Governor of the State of Vermont on March 13, 2020 regarding the outbreak of COVID-19. The Emergency Rule shall be effective for the duration of the State of Emergency subject to the requirements of the Vermont Administrative Procedures Act. The purpose of this Emergency Rule is to suspend health insurance plan deductible requirements for certain prescription drugs while ensuring that high-deductible health plans maintain eligibility for a health savings account under 26 U.S.C. § 223.