The California Department of Insurance has announced that it is ordering insurance companies to refund premiums for March and April 2020. The Department of Insurance’s Bulletin comes as a result of Californians driving fewer miles and the broad closure of businesses due to the pending COVID-19 pandemic.
According to Insurance Commissioner Lara, “[w]ith Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss…Today’s mandatory action will put money back in people’s pockets when they need it most.”