OIR Issues Memorandum on COVID-19 Preparedness
The Florida Office of Insurance Regulation has issued Information Memorandum OIR-20-03M related to insurers’ business continuity plans and preparedness for the COVID-19 pandemic. The OIR issued the memorandum in response to Executive Order 20-51 issued by Governor Ron DeSantis establishing COVID-19 response protocols. Governor DeSantis also issued Executive Order 20-52 declaring a state of emergency in the State of Florida.
The memorandum specifies that all companies regulated by OIR are directed to review and update their business continuity plans to provide a framework for the continuation of company operations, including key insurance functions such as policy issuance, premium collection, claims adjustment and payment and policyholder service. The plans also must account for Florida Department of Health and CDC guidance surrounding COVID-19, including executive orders issued at the state and national level. Companies also are directed to consider potential impacts of COVID-19 on essential operations, key personnel, supply chain, vendors, contractors and policyholders.
The memorandum also requires companies that have activated their business continuity plans in response to COVID-19 to notify the OIR. The notice should indicate the day the plan was activated and the contact person for the continuity plan. Companies also are required to notify the OIR if their business operations are compromised to a level that jeopardizes their ability to provide essential insurance services to policyholders. This notice must include detailed information regarding the extent to which business operations are compromised and a point of contact.