In consultation with the Delaware Department of Insurance, Gov. John Carney on Tuesday issued a sixth modification to his state-of-emergency declaration that requires that insurers cease cancelations or non-renewals of insurance policies due to nonpayment throughout the duration of the declared Delaware State of Emergency for those residents and business owners who are experiencing a loss of income.
In declaring a Public Health Emergency earlier this week, the governor specified that health insurers are to waive all prior authorization constraints for lab testing and future treatment of COVID-19. Delaware Insurance Commissioner Trinidad Navarro had previously recommended insurers take those actions in a bulletin to the industry.
“We are grateful for Gov. John Carney’s leadership during the COVID-19 crisis,” said Navarro. “Whether it is ensuring care without delay by removing prior authorizations in the short-term, or limiting the long-term effects of the virus’s economic impact by helping people keep their insurance, this thoughtful, detailed approach is just what our state needs.”
Delaware’s insurance carriers will freeze cancelations and nonrenewal of policies that might have otherwise occurred due to delays in payments through the duration of the state of emergency for individuals who have been laid off or fired due to the state of emergency or organizations who have had to close or significantly reduce business.
A carrier would now be required to seek a court order before they could cancel or non-renew any health, life, disability, property, auto and commercial/business insurance policies.
In addition to the immediate assistance, Navarro said, this action helps to reduce the long-term impact of the virus on insurance, because if policies were not renewed or were canceled, it could have hindered future insurance policy approvals or increased premium costs for those individuals and businesses due to the cancelation or non-renewal creating a lapse of insurance.