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What happens if I can’t pay my insurance premiums?

Last Updated: 10/13/2020

Governor Murphy has signed an executive order extending the grace period for residents unable to pay their insurance premiums because of a loss of income or other negative impact as a result of the COVID-19 emergency.

The Governor's order:

  • Extends minimum grace periods: A minimum 60-day grace period will be required for health and dental insurance policies, and a minimum 90-day grace period will be required for life insurance, insurance premium-financing arrangements, and property and casualty insurance, which includes auto, homeowners, and renters insurance. Insurance companies will be required to notify policyholders of this emergency grace period and to waive certain late fees, interest, or other charges associated with delays in premium payments as directed by the Commissioner of Banking and Insurance.
  • Requires insurance companies to pay claims during the grace period: Insurance companies will be required to pay any claim incurred during the emergency grace period that would be covered under the policy. The Order further prohibits insurance companies from seeking recoupment of any claims paid during the emergency grace period based on non-payment of premiums.
  • Ensures that unpaid premiums are made payable over a lengthy period: To ensure that policyholders are not required to make a lump sum payment on unpaid premiums at the end of the grace period, any unpaid premium will be amortized over the remainder of the policy term or a period of up to 12 months, as appropriate and as directed by the Commissioner of Banking and Insurance.
  • Requires insurers to provide each policyholder with an easily readable written description of the terms of the extended grace period.

For more information, refer to Executive Order No. 123.

If your insurance company is not cooperative, you may file a complaint with the NJ Department of Banking and Insurance (DOBI) using their online complaint form. To learn more, visit DOBI's consumer assistance page.

Source: Executive Order No. 123