19-01 - Impact of Federal Shutdown on Missourians, January 24, 2019

INSURANCE BULLETIN 19-01 Impact of Federal Shutdown on Missourians Issued: January 24, 2019

The following Bulletin is issued by the Missouri Department of Insurance, Financial Institutions and Professional Registration (“Department”) to inform and educate the reader on the specified issue. It does not have the force and effect of law, is not an evaluation of any specific facts or circumstances, shall not be considered a statement of general applicability and is not binding on the Department or an insurer. See §374.015, RSMo. (2016)

To: All insurers and entities issuing, providing, offering, or contracting to provide insurance coverage in the State of Missouri, insurance producers and other regulated entities and all other interested stakeholders From: Chlora Lindley-Myers, Director

Re: Assisting Missourians Impacted by Federal Shutdown

The purpose of this Bulletin is to provide guidance and information to insurers regarding the treatment of Missouri residents negatively impacted by the federal shutdown.

The partial shutdown of the Federal Government unfortunately had significant negative impacts on many Missouri residents, but particularly those employed by the Federal Government, either as employees or as contractors. The shutdown resulted in many Missourians not receiving their regular salary or reimbursements when normally due. This means in many instances, they were or may still be unable to meet financial obligations, such as insurance coverage, mortgages or other loans, when due. The Department encourages all insurers, insurance producers, and any other person or entity subject to regulation by this Department, to take into consideration the difficulties Missourians have and will continue to endure as those affected begin to receive their back salary or have been reimbursed for monies past due. Despite the fact that shutdown ended late Friday, these Missourians may still need time to resolve outstanding financial issues.

The Department would also encourage all insurers, insurance producers and all other persons or entities to closely monitor developments at the federal level regarding the current Continuing Resolution and budget negotiations. Should the current Continuing Resolution expire and another federal shutdown commence, the Department would likewise encourage all entities to maintain or implement measures to accommodate Missourians.

The Department specifically encourages the entities and individuals it regulates to assist those affected by the current shutdown. Insurers and other regulated entities could take actions such as:

Consistent with prudent insurance practices, relaxing due dates for premium payments, extending grace periods, waiving late fees and penalties, allowing forbearance regarding the cancellation/non-renewal of policies, allowing payment plans for premium payments, and exercising judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse.

To encourage insurers and other regulated entities to be more flexible to assist Missourians impacted by the federal shutdown, this Bulletin documents the Department’s intention not to pursue regulatory actions for those modifications made on an individual basis to accommodate impacted Missourians in these difficult and unusual circumstances.

Insurers with questions regarding this Bulletin should contact Angela Nelson of the Market Regulation Division at 573-522-9869.

###