The following notice is required In accordance with Bulletin No. 20-16 from the Department of Banking and Insurance of the state of New Jersey. The Department has directed all licensed life insurers to provide their policyholders or certificate holders who may be experiencing a financial hardship due to COVID-19 with at least a 90-day grace period to pay life insurance and annuity contracts premiums. The purpose of this extended grace period is to assure that insurance policies or contracts are not cancelled for nonpayment of premium during this challenging time due to circumstances beyond the control of the insured. A policyholder may elect this 90-day emergency grace period to begin retroactively on April 1, 2020 or opt for the grace period to begin on May 1, 2020. During this extended grace period, the Company cannot cancel any insurance policy for nonpayment of premium.
The Company will:
- Waive late payment fees otherwise due, including any interest permitted pursuant to N.J.S.A.17B:25-3, and not report late payments to credit rating agencies, during the 90- day period;
- Allow premiums due but not paid during the 90-day period to be paid over the course of the following year in up to 12 equal installments;
- Extend to 90 days the period to exercise policyholder and contract holder rights and benefits under life insurance and annuity contracts.
The extended grace periods described above shall apply to policyholders that were in good standing with the Company on March 1, 2020. This grace period is intended to be applied to premiums due after the initial premium has been made to secure coverage. It is not intended to change the terms of the issued policy or contract or be considered a waiver or forgiveness of the premium. Rather, it is intended that the Company grant the policyholder or certificate holder an extended grace period for the payment of premium due without penalty or interest.
Please contact us at 1-800-736-7311 or contactus@americanamicable.com if you would like to discuss your billing options.