Last week Governor Cuomo imposed new emergency regulations on insurers. Doing so will aid hundreds of thousands of NY state residents whose properties were damaged or destroyed when Hurricane Sandy struck a month ago.
- The New York Department of Financial Services made an emergency amendment to New York Insurance Regulation 64 (11 NYCRR Part 216) reducing from 15 business days to 6 business days the time for insurers “to commence” an investigation of certain types of claims “occurring from October 26, 2012 through November 15, 2012” in the 10 designated counties (Bronx, Kings, Nassau, New York, Orange, Queens, Richmond, Rockland, Suffolk or Westchester) and, if they wish their investigation to include an inspection of the damaged or destroyed property, to conduct that inspection within that 6 day period;
- The inclusion within that emergency regulation of a provision allowing claimants to commence certain repairs immediately and before the insurer has had an opportunity to inspect the damaged property “[w]here necessary to protect health or safety” and provided the claimant submits proof of loss documentation;
- the issuance of Executive Order Number 82 temporarily suspending from today and until further notice the requirements of New York Insurance Law § 2108 so that the DFS may more easily issue temporary public adjuster licenses that authorize such temporary licensees to adjust property/casualty insurance claims in the counties of Bronx, Kings, Nassau, New York, Orange, Queens, Richmond, Rockland, Suffolk and Westchester that are commenced during the period this executive order remains in effect; and
- In addition the state’s insurance regulator will begin posting report cards on the performance of insurers to the agency’s website. This will ideally make the companies more accountable for their response to customers needing assistance following the storm.
While we applaud the intent by the governor, we question the enforceability of regulation 64. For example what does “commence” actually mean? Personally we think the decree has more political value than policyholder value.
We do like the Report Card idea as public relations is so important in this era driven by the power of social media. Insurance carriers should really think twice before they take the hard stance as consumers have far more power and voice than in storms past.
We just thought we would share……
