June 29, 2020
June 22, 2020
- PPP Loan Forgiveness Application Forms Updated and Streamlined
- Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19
- CDI Announces New Order Regarding Workers’ Compensation Premium Savings for CA Businesses Affected by COVID-19
june 15, 2020
june 10, 2020
- Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
- California Modifies the Tolling of Statutes of Limitations in Civil Cases
june 8, 2020
- CCPA Enforcement Date Fast Approaching Regardless of COVID-19
- Hotels in California May Be Days Away From Reopening: What Hoteliers Need to Know
June 4, 2020
may 29, 2020
may 28, 2020
- House Introduces Pandemic Risk Insurance Act of 2020 in the Wake of COVID-19 Business Interruption Claims
may 27, 2020
- Hoteliers Beware: a Return to Business Post-Pandemic Brings With It Potential Legal Liability
- House Contemplates Revisions to the Paycheck Protection Program
may 15, 2020
may 14, 2020
- U.S. House Democrats Introduce HEROES Act, a New $3T Stimulus Package
- SAFE Banking Act for Cannabis-Related Businesses Included in the HEROES Act
may 12, 2020
may 8, 2020
- Treasury and the SBA Issue Guidance Regarding the Employee Retention Credit
- Businesses Reopen in Los Angeles County as Stage 2 of California’s Statewide Plan Begins
- Update: Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. County Ordinance
may 6, 2020
- SBA Extends PPP Certification Safe Harbor to May 14
- A 2008 Redux: IRS Provides Temporary Cash/Stock Dividend Relief for Publicly Offered REITs and RICs
- EPLI Insurance and Employee Benefits in the Age of the Coronavirus
may 5, 2020
- Update: PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
- NAIC Issues Business Interruption Data Call in the Wake of COVID-19
may 4, 2020
- PPP Guidance Issued by the SBA and U.S. Treasury at Odds With the CARES Act—Michelman & Robinson Files First-of-Its-Kind Lawsuit Challenging FAQs
may 1, 2020
april 29, 2020
- Planning for Your Employees' Return to the Workplace
- Los Angeles Hospitality Workers Among Those Thrown a Potential Lifeline
april 24, 2020
- Attention Cannabis Businesses: Hope May Be on the Horizon for Federal COVID-19-Related Relief
- California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19
- SEC Approves Amendments to Nasdaq and NYSE Continued Listing Requirements Due to the COVID-19 Pandemic
April 23, 2020
april 21, 2020
- Additional Funding Is on the Way to Resurrect the PPP
- Certifying Your PPP Loan: Proceed With Caution
april 17, 2020
april 16, 2020
- Employment in the Wake of Coronavirus: EEOC and OSHA Guidance Allows Employers to Go Where They Could Not Go Before
- New Yorkers Ordered to Stay at Home Even Longer Amid the COVID-19 Crisis
- Paycheck Protection Program Funds Exhausted
april 15, 2020
- Attention Insurers: the CDI Has Ordered You to Fairly Investigate All Business Interruption Insurance Claims Caused By the COVID-19 Outbreak
April 14, 2020
- Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California
- What to Do If Your New York Business Has Been Deemed Non-Essential
APRIL 13, 2020
- IP Deadlines and Fees Extended Under the CARES Act
- Employment in the Wake of Coronavirus: Reintegrating Your Workforce in the New Normal
APRIL 10, 2020
- You Successfully Applied for and Received a PPP Loan Under the CARES Act: Now What?
- Safer at Home Order in L.A. Extended to May 15
- Maintaining Your Trade Secrets During the Coronavirus Crisis
APRIL 9, 2020
april 8, 2020
- Congress Looks to Bolster the PPP With Another $250B in Funding
- U.S. Treasury Provides Further Guidance to PPP Borrowers and Lenders
- L.A. Mayor Amends COVID-19-Related Paid Sick Leave Ordinance
april 7, 2020
- Clarifying the Paycheck Protection Program: Payment of Insurance Premiums and Loan Forgiveness under the CARES Act
April 3, 2020
april 2, 2020
april 1, 2020
March 31, 2020
march 30, 2020
- Large Employers Required to Pay Coronavirus-Related Sick Leave Under New L.A. Ordinance
- Insurance Coverage Potentially Triggered by COVID-19
- Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
- DOL Is Requiring Employers to Post Families First Employee Rights Notice
March 27, 2020
- A Comprehensive Guide to Understanding Coronavirus-Related State Assistance Programs: Who is Giving What to Whom (Part II)
- IRS Releases “People First Initiative” Temporarily Adjusting and Suspending Key Compliance Actions
- HHS Relaxing Enforcement of HIPAA to Facilitate Sharing of Information During the COVID-19 Crisis
March 26, 2020
march 25, 2020
march 24, 2020
- Navigating the Coronavirus Pandemic: a Critical Business Review Checklist
- SBA Loans for Companies Impacted by Coronavirus
- SEC Relaxes Federal Proxy Rules for Annual Meetings
march 23, 2020
- Federal Reserve Responds Boldly to Coronavirus-Related Economic Downturn
- The Number of Jurisdictions Implementing Stay-at-Home Orders Is Increasing Exponentially
- Michelman & Robinson’s Guide to Coronavirus-Related Paid Sick Leave and Unemployment Insurance Laws in the Tri-State Area
MARCH 21, 2020
- New Jersey Orders Its Residents to Stay Home
- “Essential Businesses”— What if I am Stopped?
- The IRS and States Provide Tax Relief in the Wake of the Coronavirus Pandemic
MARCH 20, 2020
- New York Governor’s PAUSE Order
- Illinois Governor’s Statewide Stay-at-Home Order
- Force Majeure Clauses in Commercial Real Estate Contracts
MARCH 19, 2020
- SEC Provides Regulatory Relief for Public Reporting Companies
- Student Loan Borrowers Can Breathe a Sigh of Relief, At Least Temporarily
- California Governor's Statewide Stay-At-Home Order
MARCH 18, 2020
- "Shelter in Place" Orders
- Telecommuting in the Age of Coronavirus
- Families First Coronavirus Response Act Just Passed by the Senate and Signed Into Law by the President
MARCH 17, 2020
- M&R Coronavirus Risk Mitigation Team: A Multi-Disciplinary Legal Team Ready To Immediately Address A Host Of Coronavirus-Related Issues for Businesses, Quickly And Holistically
MARCH 16, 2020
MARCH 5, 2020
Attention Insurers: CDI Orders Mandatory Call for Business Interruption Coverage Information in the Wake of COVID-19
MARCH 30, 2020
****UPDATE – This Client Alert has been updated to reflect recent conversations with senior staff at the California Department of Insurance****
In response to the evolving situation presented by the coronavirus pandemic, California Insurance Commissioner Ricardo Lara has circulated a notice to all admitted insurance companies in California, as well as non-admitted carriers doing business in the state, requesting information about business interruption and related coverage. More specifically, the CDI has issued an urgent data survey to better understand the number and scope of business interruption insurance coverages in effect in California and to approximate the number of those policies that exclude viruses such as COVID-19.
In light of this mandatory call, and in an attempt to ease concerns and streamline the data collection process for similar insurance department directives, Ray Farmer, President of the National Association of Insurance Commissioners (NAIC) has assembled a team of state regulators to work with NAIC staff to design a common template that covers (1) insurer operational readiness, (2) relevant financial market impact, and (3) policy coverage matters. Mr. Farmer had urged state regulators (the CDI included) to refrain from commencing data calls until the template is circulated on April 1, 2020 (an anticipated date)—this in order to lessen the burden on responding carriers and also streamline the number of responses that state insurance departments would need to manage.
It is not entirely clear how Commissioner Lara’s position regarding his notice meshes with the NAIC’s call for uniformity when it comes to data requests made by state insurance departments. In an attempt to gain some clarity on the issue, Michelman & Robinson reached out to senior staff members at the CDI and learned that Commissioner Lara’s data call was developed prior to the NAIC’s request, and that once the NAIC template is issued, the CDI will coordinate going forward. In the meantime, for insurance companies (admitted or otherwise) in California, the following Q&A serves to break down Commissioner Lara’s directive in its current form.
Q. What exact information must qualifying insurers provide to the CDI, and when must it be submitted?
A. According to the notice, insurers (again, those that are admitted in California, along with non-admitted carriers doing business in the state) should, to the extent available, provide the following data regarding business interruption-related insurance matters to the CDI no later than April 9, 2020:
- The volume of (1) business interruption coverage, (2) civil authority coverage, (3) contingent business coverage, and (4) supply chain coverage written and that has not lapsed as of March 26, 2020. This information is to be expressed in policy types and numbers of policies written of each type. For the four types of coverage identified, insurers are asked to provide information on the following questions:
- How many policies are covered under each coverage identified above?
- Out of these policies, how many fall under businesses with more than 500 employees, or alternatively, meet your definition of a large business?
- Out of these policies, how many fall under business with less than 500 employees, or alternatively, meet your definition of a medium-sized business?
- Out of those policies covering businesses with less than 500 employees, how many fall under businesses with less than 100 employees, or alternatively, meet your definition of a small business?
Q. Will any mechanism be made available by the CDI to more easily present the requested data?
A. Commissioner Lara has advised that a Microsoft Excel workbook will be sent to carriers in an upcoming communication containing submission instructions. All of the foregoing information is to be entered into the workbook and sent to the CDI no later than April 9.
Q. Given the scope of information being requested, and the requirement to present them in an Excel workbook, questions may arise. Where should qualifying insurers direct inquiries?
A. Questions about the directive should be asked via email and sent to firstname.lastname@example.org.
Q. What has been the reaction to the CDI’s request for data?
A. Carriers, at least some of them, have not been very happy. Comments from David A. Sampson, president and CEO of the American Property Casualty Insurance Association (“APCIA”), provide a glimpse into the mindset of many an insurance company, “the less time insurers have to spend on responding to regulators seeking information, the more likely they will be able to focus on customers.”
There is no doubt that the COVID-19 pandemic is dragging insurance companies into uncharted waters. Which is why Mr. Sampson recently stressed that the more coordinated these data calls are to make them “uniform, limited in scope, and reasonable in timing, the more insurers will be able to focus on customer service obligations.”
Q. Is there any other information about the coverage information subject to the data call or anything else about Commissioner Lara’s mandate that insurers should know about?
A. Yes, along with the notice, the CDI distributed an FAQ on business interruption insurance and other issues affecting California small businesses that may be of interest to insurers required to provide related data. Also, carriers may be interested to know that similar mandatory data requests relating to business continuation and business interruption coverage have also been issued in New York and Florida.
M&R will continue to monitor developments out of the CDI, APCIA and NAIC.
We are working diligently to keep our clients up to date on coronavirus-related developments. Nevertheless, these developments are changing daily and, in some cases even hourly, so it is important that you make sure you are dealing with the most current information. That being said, this alert is not offered, and should not be relied on, as legal advice. You should consult an attorney for guidance and counsel regarding any specific concern or situation.