Richard Lara, the California Insurance Commissioner issued Bulletin 2020-3 on April 13, 2020.
The subject is Premium Refunds for various lines of insurance, most notably auto insurance and Workers’ Compensation insurance.
To protect consumers and to provide consistent direction to the insurance industry regarding misclassifications of risk resulting from the COVID-19 pandemic and to address certain issues raised in CFC’s petition, Commissioner Lara hereby orders insurers to make an initial premium refund for the months of March and April to all adversely impacted California policyholders in the following lines of insurance, as quickly as practicable, but in any event no later than 120 days after the date of this Bulletin:
- Private passenger automobile insurance
- Commercial automobile insurance
- Workers’ compensation insurance
- Commercial multiple peril insurance
- Commercial liability insurance
- Medical malpractice insurance
- Any other line of coverage where the measures of risk have become substantially overstated as a result of the pandemic.
The details are being left up to each insurer for methodology, amounts and when refunds will be issued.As always, please contact us with questions.