United Fire Group Inc.

03/31/2020 | Press release | Distributed by Public on 03/31/2020 16:17

UFG Insurance response to state directives and regulatory actions

UFG Insurance response to state directives and regulatory actions

Released on: Mar 31, 2020, 16:00 PM
As you are undoubtedly aware, the unprecedented COVID-19 pandemic has elicited a multitude of activity from the various regulators. We want you to know, as our valued agency partners, how UFG Insurance is responding to this very fluid situation.

State mandates
Some states have responded with Bulletins or Executive Orders, which appear to mandate responses from insurers. Some of these are legitimate exercises of regulatory power, such as data calls which will enable the regulator to evaluate the scope of insurance issues arising in the public interest from COVID-19.

Other communications appear to require insurers refrain from certain actions (e.g. cancellation moratoriums) which would otherwise be necessary, such as invoking lapses or terminations in coverage when premium is not paid or when drivers are not properly credentialed.

Even though such practices are contrary to basic risk management and assessment principles, UFG will work with our agency partners and insureds to equitably shoulder the consequences presented by these unprecedented times.

The effect of those portions of regulatory actions that purport to invalidate policy language and extend coverage for exposures neither contemplated nor priced is unclear.

UFG intends to comply with every legitimate exercise of regulatory power but serious questions remain about whether some attempts to retroactively amend coverages are appropriate under our legal system.

State requests
Some states have requested insurers exercise restraint due to economic hardship many residents are encountering. Because we value our relationships with our agents and insureds, UFG pledges to extend every reasonable accommodation, as suggested by these requests, to you and the business you have entrusted to us.

What this means at UFG
UFG truly believes the strength of a relationship is measured by what is done when presented with adversity. While most UFG employees are working from home, our robust IT infrastructure and business continuity plan should allow us to continue with 'business as usual,' including responding to your inquiries and requests.

Please contact your underwriter or marketing representative with questions or concerns.

Thank you for your continued partnership. We're here for you and open for business, despite the uncertain times. For the latest news and information on how UFG is responding to COVID-19, visit ufginsurance.com/news.