North Carolina, Georgia Regulators: Insurance Is Essential Business

Regulators in North Carolina and Georgia are clarifying that insurance is considered an essential business as states move to limit what industries remain open during the current coronavirus outbreak.

On March 24, North Carolina Insurance Commissioner Mike Causey requested that if Governor Roy Cooper issued a statewide “Stay at Home” or “Shelter in Place” order, that financial services, including insurance services, would be deemed essential businesses to remain open to the public throughout the COVID-19 health emergency.

NCDOI said in a statement March 26 that while Governor Cooper has not yet issued such an order, many local units of government have done so, with all orders currently exempting insurance services.

The state insurance regulator said the insurance industry can choose to have their essential employees (agents, adjusters, etc.) either work in the office or at home during the declared “Stay at Home” or “Shelter in Place” orders, and does not mean an office must open its doors. Instead, the insurance industry can have their essential employees be available either by phone, online or by appointment.

“This designation allows consumers to have access to information about their insurance products at all times during this critical period,” said Causey. “However, in no way do I want to put insurance industry employees in harm’s way if they feel their health and well-being is jeopardy by meeting face-to-face with clients.”

Causey and NCDOI will continue to operate if and when a statewide “Shelter in Place” declaration is made. In addition, it will continue to update the regulated community on the impact of any such orders.

In Georgia, Insurance and Safety Fire Commissioner John King requested that counties and municipalities across Georgia determine that insurance services are an essential services, and at a minimum permit employees to work on-site who are fulfilling core functions.

King issued a bulletin this that referred to March 19 guidance from the U.S. Department of Homeland Security that identified 16 critical infrastructure sections that are needed to maintain the “services and functions Americans depend on daily.” King said the financial services sector, which includes insurance services, is identified as one of the critical sections.

“Counties and municipalities that determine non-essential businesses should be closed should consider insurance services as essential business services,” King’s bulletin states.

The bulletin says that although some insurance business can be handled remotely, insurance companies must have individuals on-site to complete core functions, including:

• Providing IT support for employees working remotely
• Processing mail, to include receiving claims and other time-sensitive items
• Claims adjusting, including processing and payment of claims. Because some claims, including disability and workers’ compensation, are paid on a regular, periodic basis, and claimants are dependent on receiving timely payments.
• Security for both facilities and information access.

The bulletin noted that certain counties in Georgia – Fulton and Bibb – “contain extensive facilities for national insurers that serve millions of customers through the Southeast, Midwest, Florida and New York regions.”

“An interruption to these facilities would affect insurance claims across broad swaths of the United States at a critical time,” the bulletin states.