Three terms are defined; eligible employees, net written premiums received, and state of emergency. Eligible employees are those full-time employees with a normal work week of 25 or more hours. Net written premiums received are gross direct written premiums less return premiums and dividends credited or paid to policyholders as shown on the carrier's financial statement. State of emergency means the state of emergency declared March 9, 2020 to protect Ohio citizens from COVID-19.

The bill states that every policy providing business interruption coverage in force as of the effective date of the bill shall be construed to include among covered perils global virus transmission or pandemic during the state of emergency. Coverage shall apply during the state of emergency. The business must be located in Ohio and have one hundred or fewer employees, and be covered by a policy that included business interruption on the effective date of the bill. Insurers paying such claims may apply to the Superintendent of Insurance for relief and reimbursement from funds collected for this purpose.

The Superintendent will develop claim procedures for insurers to follow to submit claims and will include standards for carriers to use to avoid fraudulent claims by insureds. Claims to insurers will either be paid as they are received or after an assessment has been charged to collect funds for these claims.

An assessment will be charged to carriers in order to recover the costs of these claims. Assessments will be in proportion to net written premiums subject to the assessment on risks in the state during the calendar year immediately preceding the effective date of the bill. A business Interruption Insurance Fund will be created in the state treasury. Any funds remaining after all claims have been paid will be returned to insurers in a manner prescribed by the Superintendent. When the fund balance reaches 0, the fund will be dissolved.

Massachusetts

A bill was proposed to the legislature stating that every insurance policy providing property damage that provides business interruption coverage, regardless of terms and exclusions in the policy, will be construed to provide coverage for interruption directly or indirectly resulting from COVID-19. Carriers may not deny a claim for loss of use or occupancy and business interruption on account of COVID-19 being a virus, even if the policy excludes viruses, and even if there is no physical damage to the property. The coverage will apply subject to policy limits until the emergency declaration is lifted. This applies only to insureds with 150 or fewer full-time equivalent employees, and whose policies are in force on the effective date of this act, or become effective before the date executive order 591 is rescinded by the Governor.

Insurers that provide such coverage may apply to the Commissioner for relief and reimbursement from funds collected for such purpose. The Commissioner will establish procedures for the submission of such claims. The Commissioner is authorized to make one or more assessments against insurers selling business interruption coverage as necessary to recover the amounts paid to insurers for these claims.