COVID-19: Payment Grace Period
Temporary Payment Grace Period
The coronavirus (COVID-19) outbreak, and emergency public health measures by state and local leaders throughout the country, has led to widespread business interruptions, unemployment and disruption of daily activities for consumers and employees of credit unions, including but not limited to self-quarantine and isolation to protect individual’s and the overall public’s health. Due to the unprecedented and extraordinary impact of the COVID-19 emergency, ASI has implemented the following cooperative action steps that impact the timing of your quarterly premium payments and other matters:
The ASI excess insurance policy requires premium payments generally within 30 days and also provides for a 30-day grace period. Through at least September 30, 2020, or until such later date as the national and state guidance and restrictions as to social distancing, stay-at-home and other orders/guidance is lifted, ASI has increased the grace period to 60 days, so that insured credit unions have up to 90 days in total to make their quarterly premium payments. At this time, we will maintain this 90-day total time period to remit premium payments for first quarter 2020 premiums that will be due not later than June 30, 2020 and for second quarter 2020 premiums that will be due not later than September 30, 2020.
We will work with credit union personnel on a case-by-case basis to ensure that continuation of excess insurance coverage is not impacted by the timing of premium payments in the event that circumstances dictate more time than 90 days is needed to make a premium payment, in effect deferring policy cancellation actions due to non-payment of premiums during the COVID-19 crisis.
Please note that the ASI excess insurance policy does not include any provision for ASI to charge late payment fees and we do not and will not charge any late payment fees. Please also note that the ASI excess insurance policy is perpetual and does not expire – it can only be terminated by the member credit union or by ASI. Our electronic Premium Payment System (PPS) continues to be available for those that use the PPS or for any credit union that wishes to sign up to use the PPS.
If you have any questions on any of these matters, please e-mail us at Mail@AmericanShare.com or use the Contact form at the bottom of this page.