Insurance companies will need to answer Sandy insurance claims quicker or face poor grades in the state’s new online grading system for insurers.
Governor Andrew Cuomo announced the new measures yesterday to help expedite insurance payments to victims of Superstorm Sandy. The Department of Financial Services (DFS) issued a new regulation that will cut insurance companies’ time to follow up on claims from 15 days to six days.
Companies that do not begin investigating within six days face a fine of $1,000.
“In the wake of Hurricane Sandy, it is vital that New Yorkers receive their claim settlements as soon as possible, so that they can rebuild their homes, businesses and lives,” Cuomo said. “There simply is no substitute for speed when it comes to insurance payouts after a storm. We must do everything possible to make sure we hold insurance companies accountable to their customers.”
In addition to speeding up claims, the governor announced an online grading system assessing insurance companies to hold them accountable. The reports cards can be found at www.NYInsure.ny.gov. The criteria insurance companies will be judged on is:
- Number of claims and dollar amount of claims
- Average time for an adjuster to inspect
- Number of claims closed with and without payment so far
- Total number of consumer complaints
- Number of complaints as a percentage of number of claims