Insurance Companies Are Businesses, Too
Thursday, April 16th, 2020 Catastrophe Legislation & RegulationIn the rush to protect businesses and consumers from financial disaster, state governors around the nation are enacting a variety of rules and requirements to help provide relief to people struggling with the economic impact of COVID-19.
In some states, evictions and foreclosures have been ordered stopped. Others have enacted all sorts of moratoriums on fines and fees as well as waived other requirements to ease the burden on affected people. But, aside from the financial sector no business sector has been singled out more in these special pronouncements than the insurance industry.
Auto insurers have been ordered to insure risks they originally did not anticipate. Health insurers have been pushed to waive co-pays and deductibles for COVID related benefits. Workers’ comp insurers are starting to see ordered coverage for COVID related illness and absence that would not exist under normal statute.
And this week, in California, insurers across multiple lines were ordered to refund premiums for the months of March and April, and “possibly beyond.” California Insurance Commissioner Ricardo Lara said in a statement it was intended to provide “much needed relief” to businesses and consumers.
We should remind the commissioner, along with all these governors, that insurance companies are businesses, too.
