Premium Payment Deferral Option for PolicyOwners Affected by COVID-19
Posted April 1, 2020
To help ease the burden for our PolicyOwners who are experiencing more stress, anxiety and financial uncertainty during this pandemic, MagMutual is offering our medical professional liability policyholders the option to defer your premium payment for nine months. At the end of the nine months, you will have the additional option to spread your outstanding balance out over your subsequent policy period. This offer is available to both new and existing policyholders.
HOW IT WORKS:
Example 1: If your renewal date is May 1, 2020, and your annual premium is $10,000, policy premium won’t be due until February 2021. At that time, you can elect to either pay the $10,000 in full (assuming you renew with MagMutual) or use our quarterly, interest-free payment plan and pay $2,500 each in February 2021, May 2021, August 2021 and November 2021 (in addition to whatever your new policy premium is at that time).
Example 2: If your policy incepted on January 1, 2020, your annual premium is $10,000, and you are on the quarterly payment plan, you will have already paid your first installment of $2,500. You can now elect to defer your upcoming April 1 payment until January 2021. At that time, you can elect to either pay the outstanding balance ($7,500) in full or (assuming you renew with MagMutual) use our quarterly, interest-free payment plan and pay $2,500 each in April 2021, July 2021 and October 2021 (in addition to whatever your new policy premium is at that time).
Example 3: If your policy incepted on November 1, 2019, with an annual premium of $10,000, and it is on the quarterly payment plan, you will have already paid the first and second installments of $2,500 each. You have two options: you can defer the remaining payments until February 2021. At that time, you can pay the outstanding balance ($5,000) in full or (assuming you renew with MagMutual) use our quarterly payment plan and pay $2,500 each in February 2021 and May 2021. Or, you can pay your remaining payments as scheduled, and instead defer your entire $10,000 premium when you renew on November 1. Then, on August 1, 2021, you can either pay the outstanding balance in full or pay installments in August 2021, November 2021, February 2022, and May 2022.
- Applies only to medical professional liability premiums
- Applies only to policies billed directly by MagMutual. Deferral option is not available on policies billed through an insurance agency or finance agreement.
- Payment deferral option begins April 1, 2020, and is available for one-time use only.
- Applies only to medical professional liability policyholders whose policy is in force and of record as of April 1—December 31, 2020. Offer ends December 31, 2020.
- Policyholders with an outstanding balance on their current policy can elect to defer their remaining premium or wait to defer their renewal premium, but cannot defer both.
- Policyholders electing to defer their renewal premium must first satisfy any outstanding balances on their current policy.
- At the end of the nine-month deferral period, policyholders have the option to pay the outstanding premium amount in one lump sum or in quarterly installments spread over their subsequent policy period.
- After the premium deferral is processed, policyholder will receive a summary statement reflecting the installment schedule and future due dates of the deferred balance. (Note: because of the way invoices are reconciled, an automatically generated invoice that does not reflect the deferral may go out prior to deferral being processed.)
Policyholder will receive the first invoice on their deferred balance 30 days prior to the future due date.
- Policyholder is responsible for any applicable premium taxes, surplus charges or assessments due during the deferral period.
- Any dividends declared by MagMutual during the deferral period will be paid to the policyholder when they make their first payment.
- Applies only to medical professional liability policyholders with annual premiums less than $2,000,000. For premiums over this amount, please speak to us about customized payment plan options.
- If the policy is not renewed, all outstanding premiums are owed upon expiration of the policy.
- Assumes your state will allow premium deferments outside of policy norms.
- Does not apply to any deductibles or SIRs due.
HOW TO GET STARTED:
If you meet the criteria outlined under the Conditions section above, click here to complete the online enrollment agreement. If you prefer, you can download this form and return it to us via email or mail. For additional assistance, please call us at 800-282-4882.
ADDITIONAL RESOURCES AND SUPPORT:
The MagMutual COVID-19 Resource Center is continually updated with information, guidelines and statements.