Commissioner Lara urges insurers to assist California workers affected by federal shutdown
News: 2019 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Ricardo Lara strongly urges that insurance companies assist Californians who are affected by the Federal Government shutdown and may face delays in paying premiums or cancellation of policies. The Commissioner is asking insurers to be patient and work with these California residents during this difficult time.
“The Federal shutdown is putting Californians at unnecessary risk of losing insurance coverage over late or unpaid bills,” said Commissioner Lara. “I am asking insurers to partner with me to protect our federal workers and contractors in California to give them some peace of mind during this time of uncertainty.”
The partial shutdown of the Federal Government is negatively affecting many California consumers, specifically those employed by the Federal Government and contractors who are not being paid their regular salary or receiving reimbursements when normally due. This delay in payment affects these consumers’ ability to pay their bills on time including insurance coverage, mortgages or other loans.
Commissioner Lara asks insurers to take into consideration the difficulties California consumers are facing and will continue to face until the current shutdown has ended. He urges insurers to relax due dates for premium payments, extend grace periods, waive late fees and penalties, allow forbearance with regard to the cancellation/non-renewal of policies, allow payment plans for premium payments, and exercise judicious efforts to assist affected policyholders and work with them to make sure that their insurance policies do not lapse.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.