Premium Payment Deferral Option for PolicyOwners Affected by COVID-19
Updated December 30, 2020
To help ease the burden for our PolicyOwners who are experiencing more stress, anxiety and financial uncertainty during this pandemic, MagMutual offered our medical professional liability policyholders the option to defer your premium payment for nine months.
FREQUENTLY ASKED QUESTIONS:
Will I receive a new invoice for my deferred payments?
After your premium deferral is processed, you will receive a summary statement reflecting the installment schedule and future due dates of the deferred balance. You will receive the first invoice on your deferred balance 30 days prior to its due date.
Will I continue to receive invoices after enrolling in the premium payment deferral option?
Yes, potentially. Any time there is endorsement activity on your policy – for example, adding or removing physicians – an invoice may be sent as a record of your new premium amount. You do not need to pay these invoices.
Will I receive any dividends MagMutual pays out during my deferral period?
If you are eligible for dividends, they will be applied to your overall deferred balance.
I have paid one quarterly installment payment on my premium balance and deferred the remaining three payments. When the deferment period ends, will I have the option to spread my deferred balance over four quarterly installment payments?
No, you cannot spread three deferred payments over four quarterly installments. You will have the option to pay them in three quarterly installments or you can elect to pay your balance in full.
- 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.
ADDITIONAL RESOURCES AND SUPPORT:
The MagMutual COVID-19 Resource Center is continually updated with information, guidelines and statements.