Insurance Department, insurance companies collaborate to benefit North Dakota consumers

Insurance Commissioner Jon Godfread today applauded the issuance of "Shelter-in-Place-Payback" to car insurance drivers insured by Allstate and the creation of the “Return of Premium Relief Fund” by American Family Insurance. Allstate and American Family Insurance are returning savings resulting from the COVID-19 pandemic. Both Allstate and American Family Insurance have acknowledged that they arrived at these relief options for customers, in part, as a result of various bulletins and guidance from the North Dakota Insurance Department.

“Consumers deserve to share in the savings as auto accidents continue to decline from fewer cars being on the road,” Godfread said. “As many consumers are experiencing financial hardship right now, I applaud Allstate and American Family Insurance for exemplifying the very type of action that needs to be taken at this time. Together, these companies and the North Dakota Insurance Department are putting money in the hands of consumers when they need it most.”  

Customers of Allstate may qualify for a payback equal to 15% of their March and April premiums, payable in April and May respectively. Qualifying customers of American Family Insurance will be entitled to a one-time $50 payment per insured vehicle from the Return of Premium Relief Fund. This comes on the heels of extensions of coverage for customers that are using their personal vehicles to deliver food and supplies during the pandemic.

The Insurance Department issued Bulletin 2020-8 to urge all North Dakota insurers, producers, adjustors and other persons licensed and authorized to transact the business of insurance within the state of North Dakota to provide flexibility and possible relief from certain insurance requirements to those North Dakota consumers and businesses that have been impacted by the COVID-19 pandemic.

Any relief offered to consumers who are facing financial hardship due to COVID-19, as described in Bulletin 2020-8, will not be considered unfairly discriminatory or a rebate if the relief is focused on providing additional consumer protections and is reasonably applied to all insureds, claimants or covered persons that are similarly impacted by this public health crisis.

“The insurance industry is continuing to step up and play its part in the overwhelming response to this public health crisis,” Godfread added. “I want to encourage any North Dakota consumer that has been financially impacted by the COVID-19 pandemic to reach out to their insurance company, before missing a payment or canceling their insurance. Every insurance company has assured me that they are willing to be as flexible as possible to assist consumers during this challenging time. While Allstate and American Family Insurance are two current examples of the lengths the industry is willing to go, most of our companies and agents are willing to try and work with consumers to ensure they have and can maintain the coverage they need.”