Grace Period for Insurance Premiums for NJ Businesses and Residents

Date: April 15, 2020

Two months leeway allowed for a variety of policies

The New Jersey Department of Banking and Insurance has instructed insurers to offer relief to businesses and residents in the state as it pertains to paying premiums during the COVID-19 pandemic. Governor Phil Murphy issued an executive order requiring a grace period during which certain insurance companies providing health and dental insurance, life insurance and property and casualty insurance cannot cancel policies for non-payment.

Health and dental insurance providers must allow for at least 60 days grace. Life insurance, property and casualty, and insurance premium finance companies must offer a grace period of 90 days. Policyholders must contact their insurance company to take advantage of the grace periods and set up a payment plan for the period when the grace period ends.

Insurance carriers are required to continue paying claims and to allow policyholders to spread out the money owed during the grace period throughout the remaining months through policy expiration. Late fees would be barred and so would reporting a lack of payment to the credit agencies. For more detail visit these links:

 

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