Insurers subject to the data call were expected to receive individual letters on May 8. They will be required to respond to the data call in two parts using prescribed templates that must be submitted electronically through the NAIC Regulatory Data Collection (RDC) application. The first part, which requests information on premiums and policies written, will only be reported once and is due May 22, 2020. The second part, which requests claims and loss information, must be reported monthly, with the first submission reflecting cumulative data through June 8 due June 15, 2020, and mid-month filings thereafter through November 19, 2020.
The data call requires reporting on a group basis with separate reporting for Business Owners Policies and all other policies that include BI coverage (including commercial multiperil policies). For premiums and exposures, it requires a break-out for small, medium, and large businesses (defined by number of employees) and asks for premiums, the number of inforce policies, the percentage of policies with a physical loss requirement, and percentage of policies with a virus exclusion. For the claims and loss report, it requires reporting of the number of COVID-19 related reported claims, the number of closed claims with and without payment, and paid and incurred losses. The instructions and reporting forms can be found here
The NAIC data call is being issued amidst significant legislative and regulatory pressure for insurers to pay BI losses despite what their policies say. As of the date of this alert, bills that would mandate retroactive BI coverage have been introduced in multiple states, and BI-related federal legislation has also been introduced. For more information on these proposals and discussion and analysis of COVID-19-related BI coverage issues, see our Legal Alert: Legal and Regulatory Developments – Business Interruption Insurance for COVID-19 Related Losses
III. Information Requests on COVID-19 Preparation and Exposure