Premium Payment Grace Period and Continuity of Coverage for Federal Employees Impacted by the Government Shutdown
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This bulletin mandates accommodations (grace periods, moratorium on cancellations/nonrenewals, waiver of late fees, flexible documentation, and repair time extensions) that Delaware-licensed carriers must provide to federal employees and contractors residing in Delaware who are financially impacted by a federal government shutdown.
The revised Bulletin clarifies that the accommodations outlined are mandatory requirements under Delaware law rather than mere recommendations.
Accommodations and Applicability
Accommodations and applicability
Required and encouraged carrier actions for impacted policyholders:
Premium payment grace period
- Carriers must allow sufficient time for premium payment recovery; a minimum 60-day grace period is recommended; longer grace periods are encouraged where feasible.
Waiver of late fees/penalties/interest
- Carriers must not impose late fees, penalties, or interest charges related to delayed premium payments during the shutdown.
Flexible documentation
- Carriers may request reasonable documentation to confirm impacted status (for example, a furlough notice or pay stub).
Repair time extensions
- While not statutorily mandated, carriers are strongly encouraged to provide at least a 30-day extension for property repairs when shutdown-related delays prevent timely completion; longer extensions are encouraged where appropriate.
Applicability
- Applies to all admitted and non-admitted carriers providing personal and commercial insurance in Delaware, including but not limited to life, health, auto, homeowners, property, casualty, and renters insurance; carriers must implement accommodations uniformly and in good faith.
Effective period
- All required accommodations remain in effect for the duration of the federal shutdown and for an additional 30 days thereafter to allow for recovery and resolution of delayed compensation.
Scope, Operational Thresholds, and Codes
| No codes listed |
Required Carrier Actions During Federal Shutdown
Required accommodations for policyholders during a federal shutdown
Carriers must implement specified accommodations for policyholders financially impacted by a federal government shutdown: allow sufficient premium-payment grace periods (a minimum 60-day grace period is recommended; longer periods are encouraged), refrain from canceling or nonrenewing policies solely for nonpayment during the shutdown (per 6 Del. C. § 2508E), waive late fees/penalties/interest related to delayed premium payments, may request reasonable documentation of impacted status (e.g., furlough notice or pay stub), and are strongly encouraged to provide at least a 30-day extension for property repairs when shutdown-related delays prevent timely completion. These accommodations must be applied uniformly in good faith and remain in effect for the duration of the federal shutdown plus an additional 30 days.
- Minimum recommended 60-day premium-payment grace period; longer encouraged (chunk 5).
- Do not cancel or nonrenew policies solely due to nonpayment during the shutdown (6 Del. C. § 2508E) (chunk 5).
- Waive late fees, penalties, and interest charges related to delayed premium payments during the shutdown (chunk 6).
- May request reasonable documentation such as a furlough notice or pay stub to confirm impacted status (chunk 7).
- Strongly encouraged to provide a minimum 30-day extension for property repairs when delays are shutdown-related (chunk 8).
- Accommodations apply to all admitted and non‑admitted carriers and remain in effect for the shutdown duration plus 30 days (chunk 9).
Who Is Impacted and Required Accommodations (Definitions)
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