Since being assigned earlier this year to the Insurance Committee, Assemblyman Phil Goldfeder (D-Howard Beach) seems to have focused legislative efforts on constituents still working their way back from the devastation wrought by Superstorm Sandy.
In addition to sponsoring bill A05638, which would establish the New York Flood Insurance Association, and the Insurance Good Faith Act, Goldfeder has proposed legislation, which passed the Assembly this week, to enact claim investigation settlement standards, a mechanism to ensure timely payment of funds in the event of a disaster.
The bill would require insurers to respond to a claim arising from a disaster or emergency in accordance with regulations established by the Superintendent of Financial Services. It also would mandate insurers to accept or reject a claim within 15 business days of closing the investigation, and pay a claim within three business days of it being settled. Additionally, insurers would have to allow claimants to make certain repairs necessary to protect health and safety and to accept an alternative proof of damage.
In the days following Sandy, Goldfeder noted, many families were stranded by insurance companies and experienced lengthy delays in the time it took insurers to investigate, process claims and make payments. Delayed insurance payments can result in a lag in Federal Emergency Management Agency assistance, as FEMA is mandated not to duplicate services and will not provide payment for damages until insurance claims are fully settled.
“One of the lessons we learned from Sandy was that insurance companies have the advantage when it comes to claims, and they have little interest in helping families with their loss,” Goldfeder added. “This bill will help give our families the protections they deserve and ensure they are not held hostage when help is needed most.”
By Michael V. Cusenza
michael@theforumnewsgroup.com
