N.Y. Issues New Disaster Protocol for Insurers

New York Gov. Andrew Cuomo announced that his administration has established a new emergency disaster protocol that insurers “should expect to follow” in the event of future severe storms and other natural disasters.

The emergency disaster protocol includes a number of measures the state’s Department of Financial Services (DFS) put in place in the wake of Superstorm Sandy at Gov. Cuomo’s direction to help accelerate claims payments and ensure New Yorkers receive their insurance benefits.

“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,” said Gov. Cuomo.

The measures implemented after Sandy are among the potential procedures that can be activated as part of the statewide Emergency Disaster Protocol for insurers. They include:

• Creating an expedited process for temporarily licensing new claims adjusters to help ensure an adequate supply of qualified adjusters when large losses create a spike in demand for adjusters;
• Establishing a new online report card to hold insurance companies publicly accountable;
• Putting in place a temporary moratorium on insurers canceling policies in storm-stricken areas for non-payment of premiums;
• Creating a voluntary mediation process for homeowners and businesses disputing their insurance claims or dissatisfied with denials of their claims;
• Protecting the health and safety of New Yorkers by 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.

In the wake of Sandy, DFS also worked with the banks and mortgage services to provide additional relief to New Yorkers. Those measures included 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.

DFS said it expects to work with banks and mortgage services to provide similar relief to impacted families and businesses during future storms.