Gov. Ned Lamont signed an executive order April 1 allowing for a 60-day grace period on insurance premium payments.

Executive Order 7S mandates that no Connecticut insurer may lapse or terminate a covered insurance policy because a policyholder does not pay a premium or interest during this time.

The executive order applies to any entity licensed and regulated by the Connecticut Insurance Department—including health insurance carriers as well as property and casualty carriers. 

The grace period is not automatic and affected policyholders must provide additional information to insurance carriers.

The deferment is also not applicable to self-funded plans, which make up approximately 65% of the group market in Connecticut. 

More than half of Connecticut's residents are covered by employer-sponsored health insurance. 


Businesses may apply for the 60-day grace period if they are group policyholders that were required to close, significantly reduce operations, or suffered significant revenue loss as a result of the coronavirus pandemic.

Insurance carriers will provide instructions on how policyholders may apply for the deferment, as well as further information on the affidavit that is required to accompany the application.

The grace period begins April 1, 2020, for a period of 60 calendar days, and ends June 1, 2020. 

The grace period begins April 1, 2020 and ends June 1, 2020. 

While the language prohibits an insurer from lapsing, terminating, or forfeiting coverage for nonpayment of the premium, interest or indebtedness, it also explicitly states that the grace period is not a waiver. 

This means that the 60 days is only an extension of time in which a payment can be made, not payment forgiveness.

Additionally, if a policyholder took advantage of a 60-day grace period offered by the carrier for March and April of 2020, the carrier will not be required to offer an additional 60-day extension.

For more information, contact CBIA's Michelle Rakebrand (203.592.7532) | @MRakebrand

Filed Under: COVID-19, Healthcare

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