California Insurance Commissioner Ricard Lara has issued an order to insurers to send premium refunds for the months of March and April to California policyholders impacted by COVID-19. This order is in response to Commissioner Lara’s finding that the risk of loss for private passenger auto insurance is lower as a result of the pandemic, and that additional reductions in risk exist.
This order affects all insurers with California policyholders in the following lines of insurance:
- 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.
To read the complete text of Bulletin 2020-3, click on the image below.