OneAmerica: COVID-19 Lapsed Policies and Grace Period Extensions

OneAmerica: COVID-19 Lapsed Policies and Grace Period Extensions

 

At OneAmerica, we believe in being there when our custoemrs need us most. We recognize that due to the far-reaching effects of the COVID-19 pandemic, some life insurance policyowners currently have struggle to pay their premiums on time. To help those who have a real need during this time and to address the various state requests and directives, the following procedures are being implemented:

 

For policies that have lapsed

If a life insurance policy lapsed AFTER the policyowner’s resident state issued a moratorium on lapses, then:

1. OneAmerica is AUTOMATICALLY extending coverage on those impacted life insurance policies until June 1st, 2020.
2. No action is required by you or the policyowner. It is automatic.
3. These policies will show as lapsed in the administrative systems, Account Services and OSO. The status of these policies will not be updated in the systems– they will continue to show as lapsed.
4. The OneAmerica home office will mail letters to the individual policyowners impacted, and producers will receive a copy of letters to impacted policyowners.
5. This will be applied only to the states that have requested a moratorium on a state-by-state basis.
6. Impacted time frames are based on the date the policyowner’s residential state requested a moratorium– therefore, start dates will vary.
7. Policyowners may reinstate policies until June 1st, at which time back premiums would be due. Otherwise, the policy will terminate.

For policies that have not yet lapsed

For policies in grace that have not yet lapsed:

1. From April 1st, 2020 through June 1st, 2020, American United Life (AUL), State Life and Pioneer Mutual (PUL) will automatically not lapse life insurance policies.
2. This will be for all states– not just those who have moratoriums in place.
3. No action is required by you or the policyowner. It is automatic.
4. We are working toward an automated solution to reflect this grace period extension and keep the policy inforce within our administrative systems. Until this automated solution is implemented, the process for those already lapsed would be followed. This means that the policy would show as lapsed within our administrative systems.
5. After the grace period extension, back premiums would be due if the policyowner wishes to keep the coverage. Otherwise, the policy will terminate.

** Please note: This does not include non-forfeiture options (e.g. RPU, PUL, ETI, etc.)

In both cases, OneAmerica will continue to monitor the situation to determine if any additional extensions may be needed. As always, we will continue to comply with state requirements and ensure that we’re addressing this quickly-evolving situation and communicating any changes as needed.