COVID-19 Update – March 31, 2020

Question:

Can the Servicing Carrier reduce or eliminate liability coverage on certain commercial vehicles?

Answer:

Note that CAR Rule 6.C.2. requires that physical damage coverage may only be written for an Eligible Risk in conjunction with liability coverage for that same vehicle. Therefore, liability coverage may not be eliminated. However, the requirement for liability coverage pursuant to Rule 6.C.2. would not prohibit a Servicing Carrier from reducing liability coverage limits to applicable statutory minimum requirements on a policy-wide or vehicle-specific basis if requested to do so by the insured. Be advised, however, that policyholders must comply with any financial responsibility law under other federal, state, or local jurisdictions.
Refer to Bulletin No. 1097 for further information.

Question:

Can the Servicing Carrier amend the rating territory of the business address and/or the radius to local where insureds have cited that their operations are shut down or very significantly diminished due to the public health crisis?

Answer:

Consideration of such changes is consistent with the DOI directive, but CAR recommends that Servicing Carriers employ a reasonability evaluation on a case by case basis and in concert with the requirements of any financial responsibility law under other federal, state, or local jurisdictions.

Question:

Recent CAR approved forms such as Principal Place of Business and Non-Fleet PPT certifications contemplate “wet signatures.” Given the manner in which insurance agents must conduct business during the public health crisis, can e-signatures be accepted on these documents as we all work to reduce person-to-person contact?

Answer:

Yes. The accommodation of electronic signatures keeps with the intent and spirit of the DOI’s Bulletin and helps to minimize the need for physical contact during this time.