States are Limiting Insurers' Ability to Cancel Policies during Pandemic

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Following other states, like Georgia, that have recently issued orders that prevent insurers from canceling insurance policies during the ongoing pandemic, Delaware has issued an order that insurers cannot cancel policies during the pendency of the declared state of emergency. Pennsylvania has not barred insurers from canceling policies, but the Insurance Commissioner issued a notice urging insurers to be flexible with payment options for those impacted by the pandemic, but did not prevent cancellations. 

Insurers should closely monitor this situation in every state to make sure that they are abiding by these ever-evolving orders from the states regarding cancellation of policies.
 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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