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New York Regulatory Notices

New York Policyholder Notice Regarding Business Interruption Coverage

As you know, AXA XL’s insurance coverages and terms and conditions are tailored to meet the most complex insurance needs of individual clients. So, we are unable to provide specific advice here on claims or coverage. For your general knowledge, however, and as required by the NY Department of Financial Services, we are including short summaries of certain types of coverage:

1. Business Interruption Coverage: Coverage is provided for the actual loss of Business Income sustained due to the suspension of your operations caused by or resulting from direct physical loss or damage by an insured cause of loss. The purpose is to replace what the business would have financially received had the loss not occurred. For certain policies certain coverage is extended by means of an Infectious Disease extension.

2. Civil Authority Coverage: extends the business income and extra expense coverage to cover a loss that is caused by the action of civil authority that prohibits access to covered premises due to direct physical loss or damage to third party property in the vicinity of our policyholder which prevents our insured from operating at the covered premises. The loss must be caused by or resulting from an insured cause of loss. Coverage is typically provided with a separate sub-limit and waiting period.

3. Contingent Business Interruption Coverage: Provides coverage for loss of Business Income or Extra Expense due to the physical loss or damage by an insured cause of loss, covered under our insured’s policy, at a supplier or customer of our insured. Named suppliers/customers and unnamed suppliers/customers may have different sub-limits.

4. Supply Chain Coverage: Coverage is provided for the loss of Business Income or Extra Expense due to the physical loss or damage by an insured cause of loss, covered under our insured’s policy, at a supplier of products or services to our insured.

It is important to understand that determining whether there is coverage for a COVID-19 related loss would be based on the facts of an actual claim and the terms and conditions of the particular policy we issued to you. As a result, this letter does not address how the terms, conditions and limitations of your policy might apply to an actual COVID-19 loss.

New York COVID-19 Affected Policyholder Notice Addressing Financial Hardship

If you would like to discuss billing or make alternative payment arrangements or if you have any questions about the below, please contact us at 1-800-622-7311 or reach out to your broker.

A recent Executive Order issued by NY Governor Cuomo, together with recent amendments to the insurance and banking regulations (the “regulations”) enacted by the New York State Department of Financial Services (“Department”), extend existing grace periods and other additional rights under certain property/casualty insurance policies if you are an individual or small business and can demonstrate financial hardship as a result of the novel coronavirus (“COVID 19”) pandemic (“affected policyholder”). These grace periods and rights may be extended further. Please check the Department’s website at https://www.dfs.ny.gov/consumers/coronavirus for updates.

If you are an individual, generally, personal lines property/casualty insurance policies are covered by these amendments, including auto, homeowners’ and renters’ insurance. If you are an individual and an affected policyholder, please contact us if you are uncertain whether your policy is covered.

If you are a small business, only certain types of commercial lines property/casualty insurance policies are covered by these amendments, generally including property, fire, commercial general liability, special multiperil, medical malpractice, workers’ compensation, commercial auto (including livery and other for-hire vehicles), and commercial umbrella insurance. A business qualifies as a “small business” if it is resident in New York State, is independently owned and operated, and employs 100 or fewer individuals. If you are a small business and an affected policyholder, please contact us if you are uncertain whether your policy is covered.

Moratorium on Cancellation, Non-Renewal, and Conditional Renewal
If you are an affected policyholder, we, as your insurer, may not cancel, non-renew, or conditionally renew your property/casualty insurance policy for a period of 60 days. If you do not make a timely premium payment during this period or any extended period and can demonstrate financial hardship as a result of the COVID-19 pandemic, we may not impose any late fees relating to the premium payment or report you to a credit reporting agency or a debt collection agency regarding such premium payment.

Catching up on Overdue Insurance Payments
The regulations also require us to permit you, as an affected policyholder, to pay the overdue premium over a 12-month period if you did not make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic and can still demonstrate financial hardship as a result of the COVID-19 pandemic. This also applies if we sent you a nonpayment cancellation notice prior to March 29, 2020.

Policies Financed by Premium Finance Agencies – Grace Period
If your insurance policy has been financed through a premium finance agency, and you, as an affected policyholder, do not make an installment payment, the premium finance agency may not cancel your policy for a period of at least 60 days, including any contractual grace period, and subject to the safety and soundness of the premium finance agency. In addition, if you do not make a timely installment payment to the premium finance agency, the premium finance agency must extend the due date for the installment payment by at least 60 days, may not impose any late fees relating to that installment payment, and may not report you to a credit reporting agency or a debt collection agency regarding that installment payment.

Catching up on Overdue Payments to Premium Finance Agencies
If you, as an affected policyholder, do not make a timely installment payment to the premium finance agency due to financial hardship as a result of the COVID-19 pandemic, the premium finance agency must permit you to pay the installment payment over a 12-month period if you can still demonstrate financial hardship as a result of the COVID-19 pandemic, subject to the safety and soundness of the premium finance agency. This also applies if the premium finance agency issued a non-payment cancellation notice prior to March 29, 2020.

How to Demonstrate Financial Hardship
If you, as an affected policyholder, are unable to make a timely premium payment due to financial hardship as a result of the COVID-19 pandemic, you may submit to us or your premium finance agency, as applicable, a statement that you swear or affirm in writing under penalty of perjury that you are experiencing financial hardship as a result of the COVID-19 pandemic, which we or your premium finance agency, as applicable, must accept as satisfactory proof. Such statement need not be notarized.

Questions
If you have any questions regarding your rights under the Executive Order or regulations, please contact us, your broker or your premium finance agency.