State urges insurers to offer more flexibility during shutdown

The Pennsylvania Insurance Department (PID) today urged insurers to take proactive measures to assist Pennsylvania policyholders experiencing financial hardship, as the ongoing federal government shutdown continues to disrupt the lives of thousands of Pennsylvanians. Over 100,000 Pennsylvanians work for the federal government – and many have not received a paycheck during the shutdown.

PID is encouraging insurers to adopt flexible payment and renewal practices to help ensure that affected individuals and families do not lose essential insurance coverage during this period of economic uncertainty.

"Pennsylvanians placed in this position through no fault of their own shouldn't have to worry about losing their insurance coverage," said Pennsylvania Insurance Commissioner Michael Humphreys. "We're urging insurers to show understanding and flexibility so that families can maintain important protections during this difficult time, as cooperation between insurers and Pennsylvanians will help ease the burdens caused by the shutdown and support the well-being of our communities."

The federal government shutdown has caused many federal employees to be furloughed or go without pay, leaving some Pennsylvanians unable to keep up with regular financial obligations, including insurance premium payments. To help those affected, PID is encouraging insurers to:

Extend payment due dates and grace periods;

Waive late fees and penalties;

Offer payment plans to help policyholders keep their coverage; and

Avoid cancellations or nonrenewals whenever possible, after other options have been explored.

These actions apply to all types of personal insurance policies, including property, auto, life, accident, and health insurance.

USAA, a company that provides insurance and banking products to members of the military, veterans and their families, has already activated a comprehensive support plan to help their impacted members navigate financial uncertainty during the government shutdown.

"The Association has so far provided over $384 million in relief to more than 127,000 military and federal employee members through no-interest loans and payment relief options across both insurance and banking products," USAA said in a statement. "USAA encourages impacted members to visit usaa.com/relief for more information, including contact numbers to discuss special payment arrangements for insurance products."

Pennsylvanians who are affected by the shutdown should contact their insurance company or agent to explain their situation and ask about available options for keeping their coverage active.

PID submitted the notice to the Pennsylvania Bulletin for official publication on November 8, 2025, with the electronic version available the day before at pacodeandbulletin.gov.

Consumers with any questions or concerns regarding their insurance policy, or to file a complaint, can visit pa.gov/consumer or call 1-866-PA-COMPLAINT (1-866-722-6675).

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