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FAQs on GFBMIC's Partial Refund on Auto Premiums


Due to reduced driving during this time, Georgia Farm Bureau Insurance has seen a reduction in auto claims which has resulted in less money being paid on our policyholders’ behalf. Georgia Farm Bureau is not looking to profit from these trying times, and we will be giving back a portion of premiums to our auto policy holders to reflect this decrease in claim payments.  

The partial return of premium will vary based on the total amount of auto premium an individual pays and will depend on the amount of money realized from the reduction in auto claims, beginning April 1 and ending on the last day of the month in which the Governor’s Shelter in Place order concludes.

This FAQ is designed to answer questions that may arise in response to the return of premium that is being implemented as a result of the reduction in claims volume related to the COVID-19 Shelter In Place (SIP) Order issued by Governor Kemp.

 

What is the premise for the premium return?

Since Governor Kemp issued the SIP order, Georgia Farm Bureau has seen a reduction in auto claims as a result of less travel.  We are not interested in profiting from the pandemic, so we made the decision to estimate any potential profit that was resulting from this reduction in claims frequency and return it to our auto policyholders.

 

How will the return of premium be calculated?

  • We will look retrospectively and provide our auto insureds with a refund from the additional profit recorded on our auto lines during the period in which the shelter-in-place order for the full population remains in effect, or a minimum of April and May 2020.
  • Any auto policy in force at the end of the month to which a refund applies will be eligible
  • Estimated amount of claims not paid out due to reduced volume will be prorated against the amount of annual auto premium a policyholder is responsible for
  • Please note that payments will vary based upon policy premiums.

 

Will there be any limitations on the amount of premium return?

There are no limitations. The minimum payment on refunds will be $10.

 

When can a policyholder expect their return of premium check?

  • The return of premium calculation will be inclusive of April and May 2020. 
    • Even though the SIP for the full population was lifted on April 30, we recognize that a return to normalcy will occur slowly over the next month and we made the determination that we should include both April and May in the calculation.
  • Checks will be issued as soon as practical after this occurs, with the expectation being 4 to 6 weeks after the end of the SIP month end.

 

What lines of business are included in this return of premium initiative?

All auto lines, including APV, PPA, ACV, BAP, and Fleet are included.

 

Why are other lines of business not included in this initiative?

We have not seen a reduction in claims frequency in other lines due to the COVID-19 SIP.       

 

Does this apply to policyholders who are paid in full?

Yes, this applies to all auto policyholders who have a GFB auto policy in force.  There are no restrictions as it relates to the current standing of their billing status.

 

Can you apply my premium to the amount I owe you?

Unfortunately we are not in the position to be able to credit a policyholders account.  The payment will come in the form of a check issued to the named policyholder on the account.  

 

Do I have to do anything to get the refund?

No, the refund will be calculated at the end of the period in which is outlined above.  Once that occurs and the checks are printed, they will be mailed out to the policyholder.

 

Does this refund policy apply to Brokerage auto lines?

Several of our Brokerage carriers are offering auto refunds to customers in response to COVID-19.  The amount of refund varies by company.  Please contact the Brokerage Company directly at the below phone number listed for specifics on each plan.