b'Insurance Regulatory | US/NAIC | Insurance After the COVID-19 Pandemicinterested businesses and nonprofit institutions towould be open to participants for six months after purchase access to revenue replacement assistance,the date of enactment and each certificate issued excess coverages and event cancellation protection. Itwould be valid for up to one year. Once purchased, allows these businesses to affordably obtain financialthe terms of participation would not be able to be protection from economic shutdowns due to viralcancelled or altered. Participation would be renew-outbreaks that is not found in the private insuranceable on an annual basis. The Director of the BCPP market. Licensed insurance agents and brokers wouldwould also design a financial protection product to be authorized to act as the distribution network toaddress event cancellations resulting from pan-market and sell the BCPPs revenue replacementdemic emergencies through rulemaking assistance and insurers would be required to offer therequirements that would be separate from the BCPP to all policyholders who purchase covered linesrevenue replacement assistance program.of commercial insurance coverage.BCPP revenue replacement assistance would be Revenue replacement assistance would be availableparametrically triggered and disbursed automatically to any interested for-profit or nonprofit entityto those affected entities based on a formula and incorporated in the US or a US territory.the protection level selected, once a Presidential Participating entities would be required to enroll inviral emergency has been declared. The BCPP would the BCPP at least 90 days prior to a Presidentialprovide participating entities with revenue replace-viral emergency declaration in order to receivement assistance based on a percentage of the assistance payments. The Director of the BCPPparticipants total payroll and expenses, for up to a would develop a one-page electronic applicationmaximum of three months relief. Participating form for participants and would request the busi- entities could choose from desired levels of protec-nesss previous one to two years of annual taxtion that would be predetermined by the Director of returns to determine expected assistance benefit.the BCPP (i.e., 20%, 40%, 60%up to a maximum of The application would require: (i) businesses with80% of the program determined expenses). The physical locations in more than one state to specifyassistance amount would be for: (a) ordinary payroll the allocation of risk at time of purchase; (ii) busi- and employee benefits; (b) contractually obligated nesses to provide the business categorizationpayments; (c) rent or mortgage obligations for based on the North American Industrycommercial property; (d) other loan obligations; (e) Classification System for purposes of determiningequipment rental and maintenance costs; (f) tax and its assistance benefit formula based on closureinsurance payments; and (g) other categories of statuses; and (iii) the business owner would beacceptable expenses as the Director of the BCPP required to attest to certain things on the applica- determines by regulation. No profits, extra expense, tion. The attestation requirement would requirehigh level compensation or other costs would be that business owners attest (i) to the facts of theconsidered as part of the relief. A predetermined application; (ii) to future compliance with federalformula for any partial or nonpayment based on CDC, OSHA and other specified guidelines; and (iii)determinations of an essential business by closure that the funds would be used to retain employeesorder/Presidential declaration would also be devel-and keep the business viable. The Director of theoped. The Director of the BCPP would from time to BCPP would work with risk mitigation experts totime provide for general terms and conditions develop viral risk mitigation guidelines and safetyregarding the amounts paid for access to the BCPPs standards for businesses that would be provided atrevenue replacement assistance by regulation.the time of application and payment. The BCPP 72 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'