California Insurance Comissioner Ricardo Lara has ordered carriers to return premiums paid for at least the months of March and April for insurance lines where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.
Many insurance carriers of the past two weeks have been announcing significant refunds and premium reductions.
Lara's order includes private passenger automobile, commercial automobile, workers' compensation, commercial multi-peril, commercial liability and medical malpractice insurance, according to his office.
"With Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss," Lara said in a statement. "Today's mandatory action will put money back in people's pockets when they need it most."
Lara's order requires insurers to provide a premium credit, reduction, return of premium "or other appropriate premium adjustment" as soon as possible, and no later that August of this year, according to the bulletin issued. This order coincides with a request from Lara's office that insurance companies grant policyholders a 60-day grace period to pay their premiums.
(c)2020 The Sacramento Bee (Sacramento, Calif.)
Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com
Distributed by Tribune Content Agency, LLC.