✦ Insurance companies that sustain heavy losses during the COVID-19 pandemic can access tax relief through the recently passed Coronavirus Aid, Relief and Economic Security (CARES) Act, building on policies established in the 2017 Tax Cut and Jobs Act. That’s according to a new report from credit rating firm A.M. Best, which writes in a news release that “the $2 trillion CARES Act provides a special rule applicable for all companies’ net operating losses in 2018 to year-end 2020, allowing these to be carried back to each of the five tax years prior to the year of loss, which could help all insurance segments.” Read the full analysis at https://bit.ly/2VjoK9d.
✦ New York state will require insurers to pay claims on behalf of beneficiaries who can’t pay their premiums due to the COVID-19 pandemic and related economic contraction. The state also mandated that payers defer premiums due for individual and small group commercial plans to June 1 if plan members lose the ability to pay due to the pandemic, and it banned payers from reporting such missed premiums to credit agencies. Payers in New York cannot impose late fees on premiums. New York’s Dept. of Financial Services “will consider any liquidity or solvency concerns of the health plans in giving effect to this directive,” said a state press release. Go to https://on.ny.gov/2Rquywr.