Californians United to Protect Insurance Discounts (CUPID) Calls for Immediate Delay in Affinity Group Regulatory Changes During COVID-19 Crisis

PR Newswire

SACRAMENTO, Calif., April 13, 2020 /PRNewswire/ -- The COVID-19 pandemic has caught the world off-guard, and California is no exception. Over three million Californians are out of work, and the state is completely overwhelmed with a record number of unemployment claims. With these substantial disruptions to the economy, Californians United to Protect Insurance Discounts (CUPID) is calling on the California Department of Insurance (CDI) to cease any action or pass any regulation that would cause consumers to lose auto & home insurance discounts.

"Many members of my community are worried about day-to-day expenses as their workplaces cut back or completely eliminate hours," stated Gloria Colazo, CUPID member head of the Ecuadorian-American California Chamber of Commerce and Vice-Chair, Board of Directors St. Jude Health Centers. "Now is not the time to be adding one more burden on consumers by threatening to take away discounts that make insurance more affordable."

Californians now face financial uncertainties and concerns, from layoffs to reduced hours to unexpected medical expenses. Our frontline workforce, namely those in healthcare, emergency services and law enforcement, have no choice but to risk exposure to this virus. Under the proposed regulations, many unaffiliated workers, including some in health care, would lose their eligibility for affinity group discounts and be forced to pay more for their insurance.

"The over 25,000 students and retirees joining California's new Health Corps won't be eligible for affinity group discounts under the CDI's proposed reforms," says Walter Contreras, Vice President of the Western Chapter of National Latino Evangelical Coalition. "This should not be how we treat those on the frontline of this crisis."

With so much at risk during the current public health crisis, the Department of Insurance should listen to all parties in this debate, especially those with most at stake. State and local Counties are helping citizens by delaying or reassessing regulations during this time of need—CUPID hopes the California Department of Insurance will make the same commitment.

Californians United to Protect Insurance Discounts is a broad-based coalition of local business groups, community-based organizations, unions, faith leaders and property casualty insurers working together to protect affinity group programs permitted under current law to which insurers provide insurance discounts throughout California.