New York Department of Financial Services COVID-19 Emergency Regulation

On March 30, 2020, the New York Department of Financial Services adopted an emergency regulation following the issuance of Executive Order 202.13. The new regulation requires New York life, annuity and property and casualty insurers to provide certain relief to New York consumers and businesses experiencing financial hardship due to COVID-19. Pursuant to New York Executive Order 202.28, the regulation is currently effective until June 6, 2020.

For the purposes of The Standard Life Insurance Company of New York’s (SNY’s) business, the relief applies to:

  • Group Life customers of all sizes with financial hardship, and
  • Disability Benefits Law/Paid Family Leave (DBL/PFL) customers with financial hardship that are based in New York and have fewer than 100 total employees (inside and outside of New York).

The new regulation provides the following relief to SNY’s impacted Group Life insurance customers:

  • 90-day policy grace periods;
  • Allows premiums due but not paid during the 90-day period to be paid over the course of the following year in 12 equal monthly installments; and
  • Extends to 90 days the period to exercise policyholder and certificate holder rights and benefits under life insurance.

The new regulation provides the following relief to SNY’s impacted DBL/PFL New York-based customers with under 100 employees:

  • 60-day policy grace periods; and
  • Allows premiums due but not paid during the 60-day period to be paid over the course of the following year in 12 equal monthly installments.

Notices regarding these rights are being sent to SNY’s impacted policyholders the week of April 13, 2020.

Producers have related requirements and should review the Executive Order and regulation to understand them fully.

A copy of the DFS press release, full executive orders, regulation can be found here:

 

Legal

The Standard is a marketing name for StanCorp Financial Group, Inc. and subsidiaries. Insurance products in New York are offered by, and the sole responsibility of, The Standard Life Insurance Company of New York of White Plains, New York. The Standard Life Insurance Company of New York is licensed to solicit insurance business in only the state of New York.

© 2020 StanCorp Financial Group, Inc.