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Should an insurance ID card be issued for a 6-month or 12-month period?

 

That depends. Generally speaking, insurers are permitted/required to provide insurance ID cards that are valid only for the period of time for which coverage will be in place and has been paid by the insured. However – again, generally speaking – if the insured is on an insurer-sponsored payment plan, has financed premiums through a premium finance company, or has paid in full for the applicable policy period, an ID card may be issued for the corresponding policy period.

Here are how our respective states’ laws and regulations address the issue:

Delaware
The insurance ID card is valid for no more than the term stated in the policy, but not to exceed 6 months. However, an insurance ID card may be issued for a 12-month period if the premium has been written on an annual basis and the premium:

  • is being paid in installments of no more than for a 12-month period or
  • has been paid in full for the 12-month period.

This applies to insurance ID cards for personal and commercial lines coverage. (See 18 Del. Administrative Code Section 606, and 18 Del.Code Section 2118(o))

Maryland
The insurance ID card is valid only for the period for which the insured paid for motor vehicle liability insurance coverage. However, if the insured is on an insurer-sponsored payment plan or has premium financed through a premium finance company, the insurance ID card may be issued for periods of six months.

This applies to insurance ID cards for personal and commercial lines, with the exception of buses and taxis. (See MD Code, Insurance Section 19-503.1)

Pennsylvania
The insurance ID card (referred to as a “financial responsibility identification card” in the Pennsylvania statute) discloses the period for which the insured paid for coverage. However, where the insured has financed premiums through a premium finance company or is on an insurer-sponsored payment plan, the insurance ID card may be issued for periods of six months. State regulation forbids an insurance ID card from being valid for more than one year from the effective date.

This applies to insurance ID cards for personal and commercial lines coverage. (See 75 Pa.C.S.A. Section 1782, and 31 Pa.Code Section 67.24)


 

 

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