GOVERNMENTAL RESPONSES
During this COVID-19 outbreak, some governmental authorities are attempting to enact legislation that will require insurers
to respond and pay claims despite the coverage defenses carriers could raise. For example, in New Jersey, legislatures have
introduced a bill that if passed, would require insurance carriers to provide coverage disregarding any applicable policy
Exclusions. Other states are following this trend to include New York, Massachusetts and Ohio presently. There have been
proposals set in place that insurance carriers accept coverage for the Business Income losses and then re-coup funds
through Special Assessments levied against future insurance premiums. In addition, last week, 18 legislators of the House
told insurance trade groups that their members should recognize financial losses triggered by the outbreak as part of
their policyholders’ business interruption coverage. The bipartisan letter was signed by 12 Democrats and 6 Republicans.
SOME OTHER ACTIONS MOVING FORWARD
To help find an alternative solution, insurance trade associations such as the APCIA and the Reinsurance Association of America
have initiated discussions with other business trade groups about the creation of a federal program that could direct money to
affected businesses.
One of the proposals being discussed among the trade groups is a “Federal Business Interruption and Workers’ Protection
Recovery Fund” that is modeled after the September 11 Victim Compensation Fund, which would make assistance available to
all businesses.
The Florida Association of Insurance Agents, is working directly with Congress. Franklin Street is a member of the Florida
Association of Insurance Agents. We have our eyes and ears tuned into many different coverage opinions from multiple
sources, especially the Insurance Information Institute (iii), the National Association of Insurance Commissioners (NAIC)
and the Florida Association of Insurance Agents (FAIA).
Rest assured, Franklin Street is actively monitoring all avenues of recovery for our clients.
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