In response to the ongoing COVID-19 situation, CADA announced in March a plan to provide premium relief for dealerships participating in its CADA 360 Employee Benefits program.
“CADA 360 wants to ensure that employee benefits coverage is maintained during these difficult times and has come up with a solution that will allow you to keep your employees protected without any cash outlay from dealers in the plan for April and May,” said the association in its announcement.
CADA 360 has implemented a two-month premium relief plan, waiving premium coverage for April and May to provide an immediate cash flow relief to dealers and their employees in the plan. It ensures benefits coverage is maintained — even for those employees that were laid off as a result of the current crisis.
“Because some dealers reduced operations and staffing levels earlier this week, coverage would be continued for employees who were actively at work or on vacation on March 16,” said CADA, adding that new plan members would not be included for April or May — “except for those in the waiting period who are eligible for coverage.”
Furthermore, there will be no renewal rate changes until the 2021-22 policy year — which means rates will be frozen and therefore guaranteed until the dealership’s next renewal, on or after July 1, 2021.
Finally, CADA 360 is expanding its standard provisions for extending benefits during a layoff throughout the COVID-19 situation. This means that dealers can extend coverage to temporary layoffs, leaves of absence, or work-share arrangements for 60 days beyond the end of the premium relief period. Afterwards, it will revert back to the standard CADA 360 handling.
“If industry or government consultations affect our position, we will re-evaluate as the situation evolves,” said CADA.
Dealers interested in learning more about what the association is doing during the crisis can visit the CADA COVID-19 page here.
