What to Know
- On Thursday, Gov. Phil Murphy issued an executive order that would give New Jersey residents a grace period on insurance policies
- The executive order mandates a minimum 60-day grace period for health and dental insurance policies, and a minimum 90-day grace period for life insurance, insurance premium-financing arrangements, and property and casualty insurance
- New Jersey has seen a total of 51,027 cases and 1,700 deaths, as of Thursday
On Thursday, Gov. Phil Murphy issued an executive order that would give New Jersey residents a grace period during which certain insurance companies will not be able to cancel policies for nonpayment of premiums.
“We know the stringent measures we’ve put in place to combat COVID-19 have resulted in a loss of income and financial hardship for many,” Murphy said. “However, no New Jerseyan deserves to lose their insurance during this emergency, and we cannot leave people in a weaker position once it ends.”
The executive order mandates a minimum 60-day grace period for health and dental insurance policies, and a minimum 90-day grace period for life insurance, insurance premium-financing arrangements, and property and casualty insurance, which includes auto, homeowners, and renters insurance.
Insurance companies will be required to notify policyholders of this emergency grace period and will waive certain fees, including late fees, interest, or other charges associated with delays in premium payments.
The order also mandates insurance companies to pay any claim incurred during the emergency grace period that would be covered under the policy.
Additionally, the order prohibits insurance companies from seeking recoupment of any claims paid during the emergency grace period based on non-payment of premiums.
U.S. & World
Stories that affect your life across the U.S. and around the world.
Policyholders will also not be required to make a lump sum payment on unpaid premiums at the end of the grace period. The order mandates that any unpaid premium will be amortized over the remainder of the policy term or a period of up to 12 months.
New Jersey is the state with the second highest number of COVID-19 cases in the nation. On the day that Murphy issued the executive order, New Jersey had a total of 51,027 cases and 1,700 deaths.
