NJ DEPARTMENT OF BANKING AND INSURANCE ENCOURAGES REGULATED ENTITIES TO ASSIST STATE RESIDENTS WHO ARE FEDERAL WORKERS AFFECTED BY GOVERNMENT SHUTDOWN

The following information was released by the New Jersey Department of Banking and Insurance:

The New Jersey Department of Banking and Insurance today issued a bulletin encouraging insurance carriers, financial institutions, and other regulated entities to proactively work with and assist federal workers who are state residents and may be adversely affected by the ongoing federal government shutdown.

More than 22,000 federal workers are New Jersey residents.

"New Jersey residents who are employed by the federal government continue to live without a paycheck, creating an immediate and ongoing financial hardship and impacting all aspects of their lives," said Commissioner Justin Zimmerman. "The Department encourages our regulated entities to consider current circumstances and proactively assist their consumers during these difficult times. We appreciate their cooperation and support of New Jerseyans affected by the federal shutdown."

The bulletin suggested actions that could be undertaken to ease financial burdens on impacted residents. Insurance-related entities could consider relaxing premium payments and insurance policy-based loan payment due dates, extending grace periods, waiving late fees and penalties, allowing forbearance regarding cancellation/non-renewal of policies, allowing payment plans for premium payments, and other initiatives to assist affected policyholders in avoiding a lapse in insurance coverage.

Banking-related entities could take actions such as relaxing due dates for loan payments (of all types, including mortgage, commercial, student, and other consumer loans), extending grace periods, modifying terms on existing loans, easing credit card limits, extending new credit, waiving late fees and other fees, allowing borrowers to defer or skip payments, and delaying the submission of delinquency notices to credit bureaus.

The Department is committed to protecting New Jersey residents and will continue to work with regulated entities to assist affected residents during the ongoing federal shutdown.