ing any applicable deductible, except that
the parties may agree to mediate a dispute
involving a lesser amount.”
Claims Processing Provisions
In addition to the legislative provision on
mediation programs, the Connecticut Insurance Department issued Bulletin IC- 33
on June 25, 2013, setting forth its position
concerning claims-processing procedures,
as well as the suspension of premium payments for insured disaster victims, throughout the duration of the governor’s declaration of a state of emergency. Key
claims-processing provisions addressed
in the Bulletin include the Department’s
expectation that insurers, licensees, and
interested parties would take the following
actions upon receiving notice of a claim:
Promptly establish contact with the
Promptly survey and assess the claimant’s damage.
Provide prompt and accurate responses to claimants.
Provide prompt payment for additional living expenses (ALE) and for temporary repairs after assessment of the
Promptly set appointments with the
claimant for examination and resolution of all claims matters.
26 DECEMBER 2013 60th Anniversary Claims Magazine PropertyCasualty360.com
Despite the extremely, and bless- edly, quiet hurricane season of 2013, the insurance industry has received “regulatory reminders”
this year not only about what states are empowered to do in the event of a catastrophe,
but also what they most likely would do in
implementing emergency measures.
As one might expect, much of what
was recently issued comes from the states
most impacted by Superstorm Sandy. Insurers may want to take note of these recent guidance and reminder documents
and consider assessing their own emergency response plan in light of possible
regulators’ plans and expectations.
Established Mediation Programs
Connecticut’s HB 6549 (2013), which
was effective Oct. 1, 2013, authorizes
its Insurance Department to establish a
mediation program for any open claim
for loss or damage as a result of a cata-
strophic event for which the governor has
declared a state of emergency. The statute
addresses personal or real property cov-
ered under certain personal risk insur-
ance policies, condominium association
master policies, or unit owners’ associa-
tion property insurance policies.
Insurers licensed to write the applicable lines of coverage will be required
to participate in the mediation program.
Connecticut law defines an eligible claim
as “any dispute between an insured and
such insured’s insurer arising from such
catastrophic event in which the difference between the position of the parties
for the actual cash value or the amount
of loss is $5,000 or more, notwithstand-
Expectations for 2014
Multi-State Mandates for Claims,
Underwriting and Cat Response
By Kathy Donovan