State adopts disaster protocol for insurers

Insurance claims measures that state officials put in place in the aftermath of Hurricane Sandy will be part of an emergency disaster protocol for insurers in future natural disasters, Gov. Andrew Cuomo announced Monday.

In a letter to insurers, Benjamin M. Lawsky, superintendent of the state Department of Financial Services, outlined the emergency disaster protocol that could be activated. Among the measures first enacted in the wake of Sandy are:

-          An expedited process for temporarily licensing new claims adjusters to help ensure an adequate supply of qualified adjusters in affected areas sustaining large losses;

-          A new online report card to hold insurance companies publicly accountable for their performance processing claims in storm-affected areas;

-          A temporary moratorium on insurers canceling policies in storm-stricken areas for non-payment of premiums;

-          A voluntary mediation process for homeowners and businesses disputing their insurance claims or dissatisfied with denials of their disaster-related claims;

-          Permitting immediate, necessary repairs and the discarding of dangerous debris and broadening proof-of-loss-documentation to include photographs, video recordings, material samples, receipts and inventory listings.

“During Superstorm Sandy these steps helped us speed up relief to New York families and businesses, and they will now become a standard part of our storm response arsenal,” Cuomo said in a press release.

Lawsky said having an emergency protocol for insurers “on the shelf and ready to activate at a moment”™s notice will help ensure that consumers are protected when another storm strikes. This protocol will make it crystal clear to insurers what is expected of them when responding to future natural disasters and helping families and businesses get back on their feet.”

State officials said the financial services department also would expect to work with the banks and mortgage services companies it regulates to provide emergency relief to future storm victims as it did after Sandy. Those post-Sandy measures included providing options for mortgage forbearance and modifications to help prevent foreclosures; faster procedures for the endorsement of insurance claims checks by banks that hold the mortgages, and waiving fees and penalties at banks for storm-affected consumers.