{"id":"AGY-ST-UTILITIES-HOUSING-AG-073","kind":"context","level":"sector-regulator","jurisdiction":"California (Insurance Commissioner)","state":"CA","metro":"","industry":"","agency":"ST-UTILITIES-HOUSING-AG","eco":"","issuer":"Insurance Commissioner Ricardo Lara","authority":"Cal. Ins. Code 1861.01, 1861.05, 12921","instrument":"Bulletin 2020-3","title":"Premium Refunds, Credits, and Reductions in Response to COVID-19 Pandemic","dateIssued":"2020-04-13","effective":"2020-04-13; refunds for March and April 2020 due no later than 120 days after the bulletin","end":"Initial order covers March and April 2020.","startDate":"2020-04-13","endDate":"2020-09-30","quarters":["2020Q2","2020Q3"],"types":["OTHER"],"addressees":["all property and casualty insurers and workers\u0027 compensation insurers in California (including the State Compensation Insurance Fund)"],"clause":"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\u0027 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.... In responding to this Order, insurers may take the following actions without obtaining prior approval of rates or rules by the Department of Insurance if done consistent with the insurer\u0027s existing rating plan: Reclassification of exposures to comport with current exposure, or Reduction of the exposure base (miles driven, payroll, receipts, etc.) to reflect actual or anticipated exposure.","enforcement":"Cal. Ins. Code 1858 et seq. (enforcement of rating law); Bulletin states the Commissioner \u0027orders\u0027 the refunds and requires reporting","functions":["IN insurers\u0027 pricing, billing and rating systems (mandatory refunds; reclassification of exposures; payroll and receipts exposure bases reduced)","OP commercial policyholders\u0027 premium (workers\u0027 compensation, commercial auto, commercial multiple peril and liability) reflecting \u0027severely curtailed activities\u0027","CB"],"notes":"The Commissioner\u0027s finding: \u0027The COVID-19 pandemic has severely curtailed activities of policyholders in both personal and commercial lines. As a result, projected loss exposures of many insurance policies have become overstated or misclassified. This is especially true for policies where premiums are based partly on measures of risk such as number of miles driven, revenue, and payrolls which have all dropped significantly because of COVID-19.\u0027 A regulator\u0027s contemporaneous finding that payrolls, revenue and driving \u0027have all dropped significantly\u0027 across commercial lines statewide.","sourceUrl":"https://www.insurance.ca.gov/0250-insurers/0300-insurers/0200-bulletins/bulletin-notices-commiss-opinion/upload/Bulletin_2020-3_re_covid-19_premium_reductions.pdf","snapshot":"","fileExists":true,"fileBytes":42074,"grade":"primary","character":"context","description":"","collection":"AGY-ST-UTILITIES-HOUSING-AG","url":"/library/AGY-ST-UTILITIES-HOUSING-AG-073","exhibitUrl":"/exhibit/AGY-ST-UTILITIES-HOUSING-AG-073","citation":"Insurance Commissioner Ricardo Lara, Bulletin 2020-3 (Apr. 13, 2020) (Ex. AGY-ST-UTILITIES-HOUSING-AG-073)","stateName":"California","related":["SEC-13-056","AGY-ST-UTILITIES-HOUSING-AG-072"]}