This is the fourth Division of Insurance Bulletin issued so far in 2014
The tornado, categorized as an F2, touched down in the city of Chelsea and traveled into Revere between the time periods of 9:29 A.M. and 9:32 A.M on July 28, 2014. While luckily no one was injured, the tornado caused significant damages to both the home and businesses in its path, with at least 13 structures currently identified as uninhabitable and likely to be earmarked for demolition.
In the wake of this severe weather event and the damage that it caused, the Division of Insurance issued Bulletin 2014-04 this week, to offer “guidelines and recommendations for insurers dealing with insureds who have suffered damage. The following is a reproduction of what the DOI Bulletin contains:
Claims Handling
- All insurers are required to promptly investigate all claims. This includes the investigation of the causation of loss to ascertain if coverage exists on a claim-by-claim basis.
- Residents’ and businesses’ ability to qualify for federal disaster assistance may be dependent on furnishing evidence that the insurer has denied an insured’s claim in whole or in part. In those cases in which an insurer is denying a claim, the insurer must provide proper documentation to the insured which will be sufficient to allow the insured to apply for federal disaster assistance, where available.
- The Division expects insurers to offer extensions to claimants who have been displaced from their homes or businesses as a result of the disaster if they are unable to meet reporting timelines or other requirements that are specified in their insurance policies or otherwise.
- Insurers should establish expedited claim processing procedures and simplified claim reporting forms where appropriate.
Premium Payments and Vacancy Provisions
- The Division encourages all insurers to provide prompt and immediate relief to those policyholders impacted by the disaster, including the temporary suspension of premium payments and suspension of vacancy provisions for those temporarily displaced.
- The term “suspension” is not intended to mean forgiveness of the premium; rather, it refers to an extended grace period for the payment of premium.
- Insurers are also encouraged to work with policyholders with regard to the collection of premiums, including granting requests for reasonable payment plans.
- The Division will work with insurers to minimize the regulatory effects of an insurer’s suspension of premium payments, specifically in regard to financial review requirements.
Underwriting
- It is not appropriate for insurers to re-rate, cancel, non-renew, or refuse to provide insurance coverage due solely to an individual’s status as a victim of this storm or as an evacuee of this disaster.
- It is not reasonable to change policyholders’ rating classifications or increase their insurance rates solely because they are victims of this storm or evacuees of this disaster.
The Division will also be providing assistance to tornado victims in Revere through September
In addition to issuing the above Bulletin, the Division has also made staff members available in Revere to assist tornado victims. The DOI staff members will be in the Community Room of the Revere Police Headquarters at 400 Revere Beach Parkway on Wednesdays through September 10th, from 3PM – 7PM. The will be available to answer questions and assist insureds with the entire insurance claim process.
