The California Department of Insurance published a press release asking insurers to implement protective measures for insureds who are affected by the government shutdown.
The shutdown began on October 1, 2025. California is home to 160,000 federal workers who have not received a paycheck since the shutdown started, and may be facing financial hardship. Small businesses may also be affected by interrupted federal contracts and grants.
Insurance Commissioner Lara asks that insurers enact the following measures to protect affected policyholders:
- Postpone or withdraw a notice of cancellation or nonrenewal issued after October 1 because of nonpayment of premium
- Provide a grace period for nonpayment of premium for at least 30 days or longer if the shutdown persists
- Extend deadlines for submitting proof of loss and other claim forms, conducting examinations under oath, medical exams, physical inspections of property, doing required repairs to comply with underwriting guidelines, and others.
The press release can be found here.