Lisle, IL, Sept. 21, 2020 (GLOBE NEWSWIRE) -- AAIS (the American Association of Insurance Services), the modern insurance advisory organization, has received approval from six state insurance departments for its health-emergency policy endorsement, clarifying coverage and cancellation provisions in the wake of COVID-19. So far, the endorsement has been approved in Arkansas, Arizona, Oregon, South Carolina, Tennessee, and Texas, as AAIS continues to respond to regulator concerns across the country.
The AAIS COVID-19 Task Force was formed to monitor regulatory developments related to the unprecedented coronavirus pandemic, and to provide advisory solutions that help address emerging issues. In April, AAIS introduced its COVID-19 Pandemic Resource Center to provide timely and critical updates to insurance professionals and regulatory leaders, along with a library of sample forms, policyholder notices, and other materials.
Working closely with insurance departments in nearly every state, the AAIS COVID-19 Task force has developed several sample policyholder notices and a model suspension of cancellation endorsement. The endorsement provides a temporary suspension for a specific timeframe during which a policy would not be cancelled due solely to the policyholder's nonpayment of premium. The sample notices also address suspension of cancellation due to nonpayment of premium, the anticipated submission of pandemic-related claims, and good faith extensions of claim communication requirements and conditions.
“These are important developments for the insurance industry,” said AAIS General Counsel and Vice President of Government Affairs, Legal & Compliance Robin Westcott. “We’ve developed these endorsements and policyholder notices in close collaboration with state regulators offices across the country, to respond to customer needs, to help underwriters better anticipate exposures in their policies, and bring stability to the insurance market.”
In keeping with its open platform, AAIS has made these resources available for general use by all insurance carriers, provided credit is attributed to AAIS as part of any proprietary adaptations. Carriers are advised to review sample materials and applicable regulatory positions carefully. Revisions, additions, and filing action may be necessary before use.
According to Ms. Westcott, “No one could have anticipated the global impact of COVID-19; and no insurance policy could have addressed the issues that emerged as a result. That’s why it’s so important for the industry to respond quickly as issues arise.”
For access to the sample COVID-19 materials created by AAIS, and other pandemic-related resources, please contact the AAIS Government, Legal and Compliance team or visit the AAIS Pandemic Resource Center. The site includes up-to-date Department of Insurance (DOI) communications and DOI dashboards, as well as regulatory and legislative updates pertaining to COVID-19’s impact on the insurance industry.
Members of the AAIS Government, Legal and Compliance team will share more about the new endorsement and other COVID-19 resources during an Association of Insurance Compliance Professionals (AICP) webinar, “Coronavirus and Commercial Lines,” on Tuesday, September 22 from 1-2 p.m. CT.
ABOUT AAIS
Established in 1936, AAIS serves the property casualty insurance industry as the modern, Member-based advisory organization. AAIS delivers custom advisory solutions, including best-in-class forms, rating information and data management capabilities for commercial lines, inland marine, farm & agriculture, commercial auto, personal auto, and homeowners insurers. Its consultative approach, unrivaled customer service and modern technical capabilities underscore a focused commitment to the success of its Members. AAIS also serves as the administrator of openIDL, the data and information sharing platform for regulatory reporting built on distributed ledger technology. For more information about AAIS, please visit www.aaisonline.com.