Lawmakers advocate stimulus aid to insurers on business interruption
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A group of Pennsylvania Democratic lawmakers is urging Congress to reimburse property/casualty insurers for costs related to the payment of business interruption insurance claims during the COVID-19 pandemic from federal stimulus funds.
Introduced Monday in the Pennsylvania state legislature, House Resolution 842 states that the pandemic has left businesses facing “unprecedented financial challenges, uncertainty and possible closure” and that “all businesses are deserving of federal stimulus aid.”
It urges Congress to pass “legislation that channels reimbursement and aid through insurance companies and provides reimbursement to insurance companies that voluntarily pay claims submitted on business interruption insurance policies.”
H.R. 842, is sponsored by 18 Pennsylvania Democrats, led by Rep. Michael Driscoll.
The proposed resolution has been referred to the House Insurance Committee.
Just last week, Pennsylvania lawmakers joined Louisiana, New York, Ohio, Massachusetts and New Jersey in introducing a bill that would force insurers to retroactively cover business interruption claims due to COVID-19.
The developments come as insurance groups maintain that any action to mandate coverage for pandemics could threaten the solvency of the property/casualty industry.
More insurance and risk management news on the coronavirus crisis here.
