october 28, 2020
october 22, 2020
October 19, 2020
- Hope for Companies Where COVID-19-Related Business Interruption Claims Have Been Denied Without Investigation
october 15, 2020
october 12, 2020
october 8, 2020
october 5, 2020
september 22, 2020
- California Employers Now Subject to Additional COVID-19-Related Laws Related to Cal/OSHA Reporting and Worker’s Compensation
september 21, 2020
September 11, 2020
- COVID-19-Related Paid Sick Leave Has Been Expanded in California Yet Again to All Employers with 500+ Employees
august 4, 2020
july 6, 2020
july 1, 2020
- PPP Loan Deadline May Be Extended as SBA Issues New Rules Relating to Loan Forgiveness and Eligibility
- California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19
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
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
- 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)
- 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
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
House Introduces Pandemic Risk Insurance Act of 2020 in the Wake of COVID-19 Business Interruption Claims
Legislation known as the Pandemic Risk Insurance Act of 2020 (the PRIA), which was introduced in the U.S. House of Representatives this week, aims to create a reinsurance program in response to the growing COVID-19 crisis and in anticipation of future pandemics and their effects on the insurance industry and broader economy. Similar in scope and with language comparable to the Terrorism Risk Insurance Act of 2002 (TRIA) that was passed after 9/11, the PRIA, if signed into law, would cap the total pandemic-related insurance losses that carriers might face going forward. Michelman & Robinson explains.
Q. What is the purpose of the PRIA?
A. As set forth in a press release issued earlier this week, the PRIA, introduced in the House by Congresswoman Carolyn B. Maloney (D-NY), would establish a system of shared public and private (read: insurer) responsibility for business interruption losses resulting from future pandemics and public health emergencies—this in order to help prevent associated economic losses by (1) requiring insurance companies to offer affordable business interruption policies that cover pandemics and (2) creating a program to ensure there is capacity to cover these losses through a federal backstop that maintains marketplace stability and shares the burden alongside the insurance industry.
Q. Why is there a need for the PRIA?
A. Millions of small businesses and nonprofits are unable to recover from the coronavirus outbreak due to exclusions in their business interruption policies. With that serving as its impetus, the PRIA seeks to create a market-friendly insurance solution that would guarantee business interruption and event cancellation coverage in the event of another pandemic. In terms of those presently impacted by the economic fallout of COVID-19, the public-private partnership and program that the PRIA envisions will instill the confidence needed for businesses large and small to reopen, which is a crucial element for the expected economic recovery.
Q. What lines of insurance would the PRIA affect?
A. The PRIA would apply to business interruption, event cancellation, and certain other property and casualty insurance policies.
Q. How would the goals of the PRIA be accomplished?
A. The PRIA contemplates the establishment of a voluntary Pandemic Risk Reinsurance Program (PRRP) within the U.S. Treasury Department that, among other things, would do all of the following:
- Mandate that participating insurers offer business interruption insurance policies (including event cancellation insurance) that provide coverage for losses due to pandemics
- Ensure that the program only be triggered when aggregate insured losses for a covered pandemic or public health emergency exceed $250M
- Establish that the federal government would be on the hook for a sum equal to 95% of insured losses that exceed insurer deductibles, once the PRRP has been triggered
- Set each participating insurer’s deductible at 5% of the value of its direct earned premiums during the preceding calendar year
- Establish a $750B program cap for federal contribution and authorize the Treasury Secretary to determine the pro-rata share of compensation beyond that cap if losses exceed that amount
- Clarify that the program does not prohibit insurers from purchasing reinsurance coverage in the private market
It is important to specify that the PRRP would be voluntary, and those carriers that elect to be involved must offer business interruption and event cancellation policies that cover, among other things, pandemic- or public health emergency-related losses in exchange for the federal government’s agreement to pay 95% of those losses (that exceed applicable deductibles) in excess of $250M.
Q. If passed, would the PRIA be retroactive and impact current business interruption insurance policies that do not cover pandemics?
A. No, the PRIA specifically states that it “may not be construed to affect any policy of business interruption insurance in force on the date of [the bill’s] enactment . . ..” Placing an even finer point on it, the PRIA defines covered public health emergencies as “any outbreak of infections disease or pandemic . . . for which an emergency is declared, on or after January 1, 2021. . ..”
Notwithstanding the foregoing, if an insurer elects to participate in the PRRP, policy exclusions in effect on the date of its enactment that specifically exclude losses covered under the PRRP will be void, and any state approval of those exclusions is preempted, unless the exclusion can meet certain criteria, such as written approval from the policyholder.
Q. Will the PRIA impose any other requirements on participating insurers?
A. Yes, in addition to the requirements set forth above, participating insurers will be required to submit information relating to insurance coverage for business interruption resulting from covered public health emergencies to the Treasury Secretary.
Q. Will the PRRP terminate?
A. Yes, the legislation, as written, is set to terminate on December 31, 2027.
Q. How will the public and insurance companies know if the PRIA and PRRP serving their purposes?
A. The PRIA specifically requires the Treasury Secretary to conduct studies on the effectiveness of the PRRP and the likely capacity of the property and casualty insurance industry to offer insurance for risk of public health emergencies after the termination of the PRRP. Moreover, the Treasury Secretary is instructed to conduct studies on small insurers participating in the PRRP and identify competitive challenges that they may be facing in the business interruption insurance market.
Q. How are the PRIA and TRIA similar?
A. The PRIA is comparable to TRIA in that, if passed, it will offer a similar federal backstop mechanism. Much of PRIA seems to have been based on the language and structure of TRIA; however, among other things, there are some notable differences regarding triggering amounts (aggregate insured losses of $200M under TRIA and $250M under PRIA); program caps for federal contribution ($100B under TRIA and $750B under PRIA); and participating insurer deductibles (starting at 20% under TRIA and 5% under PRIA).
M&R will be following the PRIA as it works its way through Congress, and will provide updates on the legislation as it becomes available.
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.