Courtesy of AF Group
SBAM’s partner, Accident Fund Group, compiled a list of frequently asked questions for policyholders as it relates to COVID-19.
Accident Fund Group
Frequently Asked Questions – COVID-19
Q: Policyholders are having to reduce or eliminate payrolls due to a rapidly changing business environment. Policyholders have concerns about how their ability to pay their insurance premium. How is AF Group going to handle these situations?
A: We are taking several steps to assist in these situations. First, we are suspending all non-pay cancellation actions across all brands for 60 days, beginning Monday, March 23, 2020. This should provide respite from financial obligations for businesses especially hurt by reduced business.
Additionally, we are committed to working with our policyholders who need to reduce payrolls on a temporary basis. We will also offer payment options for policyholders struggling to make recent audit payments.
Q: Some policyholders are having to deploy their employees in new or additional roles to help them cope with the downturn in their business. How will AF Group handle these situations at audit time?
A: We will be as flexible as possible with audits, assuming policyholders keep detailed payroll records of employees whose primary duties have changed. In these situations, we will allow payroll to be split among class codes (e.g., a restaurant worker becomes a driver for home delivery).
Q: There may be delays due to remote work situations in binding coverage on policies that have been quoted with an AF Group company. How will you handle the backdating of policy binding?
A: We will follow our standard backdating process of obtaining a ‘no known loss’ letter to verify the account hasn’t suffered losses during the time period between the bind date and the order.
Q: How will you handle payroll reporting and payments for policyholders on the AccuPremium pay-as-you-go program?
A: Our AccuPremium servicing company is providing assistance to customers who need to report zero or lower payroll. Also, as mentioned above, we will be suspending all non-pay cancellations for a 60-day period to allow our policyholders additional time to make their payments.
Q: How will we handle onsite requirements for loss control visits?
A: For those insureds who cannot or will not accommodate onsite servicing, we may be willing to delay in person visits or explore alternative options prior to quoting, binding or issuance. Alternatives may include completing a phone or virtual survey. The expectation is that as soon as practical, we will work with policyholders to reschedule onsite visits.
Q: How will AF Group handle onsite premium audits?
A: If an onsite audit is not possible during this time of public health crisis, we will make arrangements to meet at a different location or obtain the needed records electronically. As mentioned above, we will suspend any rules against splitting payroll for individual employees as long as the employer is able to provide documentation of payroll splits during the policy period.
Q: How will AF Group handle non-renewals of policies during this time?
A: Non-renewals will be handled on a case-by-case basis, but we will try to limit those that occur over the next 60 days. If necessary, we will look at extending coverage on a short-term basis to allow non-renewed policyholders time to secure replacement coverage. Please discuss any pending non-renewals with your business development consultant or underwriter.