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California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19

The California State Senate has just amended Assembly Bill 1552 to create certain rebuttable presumptions having to do with COVID-19-related business interruption claims and disputes. In its original form, the legislation was written to adopt or revise a model curriculum in Native American studies, which is certainly a far cry from insurance regulation. In any event, Michelman & Robinson explains what it could mean for insurers if this bill, as amended, is passed and signed into law. (Read More)

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CDI Announces New Order Regarding Workers' Compensation Premium Savings for CA Businesses Affected by COVID-19

Last week, the California Department of Insurance issued a press release announcing an order issued by Commissioner Ricardo Lara mandating that premiums for worker’s compensation coverage reflect the reduction in risk attributable to the state’s COVID-19-related stay-at-home mandates. By way of this alert, Michelman & Robinson addresses questions carriers may have about the order. (Read More)

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Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19

The Nevada Division of Insurance (“NVDOI”) issued an important notice last week to all property and casualty insurers doing business in the state. Pursuant to the notice, the NVDOI will temporarily disallow the issuance of new business interruption policies—and those providing related coverage—if they contain exclusions specifically mentioning COVID-19, viruses, or pandemics. Michelman & Robinson answers some of the questions insurers and policyholders in Nevada may have about the notice. (Read More)

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California Modifies the Tolling of Statutes of Limitations in Civil Cases

Most lawsuits must be filed within a prescribed period of time, and the deadline for initiating a civil action is known as the statute of limitations. While the statute of limitations varies depending upon the type of claim contemplated in any given matter, as a rule, if it “runs out” prior to the filing of a complaint, the case is no longer valid. (Read More)

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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. (Read More)

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California Insurance Commissioner Extends Order for Insurers to Partially Refund Premiums

This is an update to Michelman & Robinson's previous report about California Insurance Commissioner Ricardo Lara’s bulletin (Bulletin 2020-3) to insurance companies requiring the return of premiums to businesses and consumers in an effort to provide financial relief during the coronavirus crisis. By way of a new bulletin (Bulletin 2020-4) issued today (May 15, 2020), Commissioner Lara has extended his prior mandate directed at all admitted and non-admitted property and casualty and workers’ compensation carriers doing business in California. M&R explains the scope of Commissioner Lara’s updated directive here. (Read More)

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NAIC Issues Business Interruption Data Call in the Wake of COVID-19

Late last week, the National Association of Insurance Commissioners (“NAIC”) issued a letter online to all property and casualty insurers on behalf of insurance regulators nationwide regarding a data call to collect information related to business interruption insurance and COVID-19. Carriers can expect to receive the letter directly on—or shortly after—Friday, May 8, 2020. In the meantime, Michelman & Robinson breaks down the information included in the correspondence and answers questions about the data call, the information requested, and who is affected by the NAIC’s outreach. (Read More)

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California Department of Insurance Issues Notice Granting Tax-Filing Extension in Response to COVID-19

In response to the COVID-19 pandemic, the California Department of Insurance has issued a notice granting a tax-filing extension to insurers and surplus lines brokers meeting certain requirements. Michelman & Robinson explains the extent of the relief and how carriers should go about obtaining it. (Read More)

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Attention Insurers: the CDI Has Ordered You to Fairly Investigate All Business Interruption Claims Caused By the COVID-19 Outbreak

That businesses have seen a sharp—and in some instances, total—decline in revenue due to the coronavirus crisis is something we all continue to grapple with. Indeed, the stay-at-home and similar orders in place throughout the nation have served to bring commerce to a screeching halt across industries. Consequently, business owners are turning to their insurance portfolios, seeking to invoke business interruption coverage—to the extent they have it available to them—to compensate for mounting losses of income and the like. (Read More)

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Insurance Companies Have Been Ordered to Provide COVID-19-Related Premium Relief to Businesses and Drivers in California

By virtue of the COVID-19 outbreak and resulting stay-at-home orders in effect throughout California, a substantial number of businesses have closed (at least temporarily) and the roads are virtually free of traffic.

Consequently, premiums paid for certain business-facing policies as well as private passenger automobile insurance may not reflect the present-day risk of loss associated with operating a company or driving a car. In fact, diminished payroll and receipts due to closure orders have, according to some, dramatically reduced the risk of liability loss for businesses, and reduced driving has resulted in fewer accidents, injuries, and fatalities on public highways and roads. (Read More)