The National Association of Insurance Commissioners (“NAIC”) has issued FAQs and provided updates that clarify various aspects of its recently issued data call for premiums and claims data regarding business interruption insurance.
On May 11, 2020, the National Association of Insurance Commissioners (“NAIC”) launched a data call to collect premium and claims data regarding business interruption (“BI”) insurance (“Data Call”), as discussed here. Originally, all 50 US states, the District of Columbia and US territories were expected to participate in the Data Call. However, the NAIC has provided a list of “Participating Jurisdictions”, which indicates that the insurance departments of New York and New Mexico as well as several territories are not participating in the Data Call. The New York Department of Financial Services is instead conducting its own data call under a “Section 308” letter issued on May 13, 2020.
The NAIC has also published Frequently Asked Questions (“FAQs”) on the COVID-19 Property/Casualty Data Call page of its website. The FAQs address a number of scenarios where BI coverage and premium amounts may be imbedded in policy provisions and total premium amounts in a way that creates difficulty in reporting solely on BI coverage or the portion of premium attributable to the BI portion of the coverage. The FAQs also provide guidance on policies that cover business income from more than one state or employees from multiple states which, if counted separately, may change the character of, say, a medium-sized business to a small business. The inclusion of surplus lines insurers domiciled in a US state or territory is also confirmed in the FAQs. The NAIC’s International Insurers Department is conducting a separate COVID-19 survey of alien surplus lines insurers.
Data from Part 1 of the Data Call – Business Interruption Premium and Exposure – is due from Property and Casualty Insurers in Participating Jurisdictions on June 1, 2020. Data from Part 2 of the Data Call – Business Interruption Claims and Losses – is due from Property and Casualty Insurers monthly beginning on June 15, 2020.
Details about the Data Call and access to the complete set of FAQs is available here.