New Jersey issues Order to Speed Up Processing of Superstorm Sandy Claims
On February 5, 2013, the New Jersey Department of Banking and Insurance (“DOBI”) issued Order No. A13-104 (the “Order”) requiring insurers to expedite their response to claims complaints resulting from Superstorm Sandy. Insurers must now respond to inquiries from DOBI within five business days of receipt of a DOBI claim inquiry, and may only request one extension for an additional five business days in which to respond. Pursuant to N.J.A.C. 11:2-17.6(d), insurers would otherwise have fifteen business days to respond, and no limits are placed on the number of extensions that may be requested. Any claims that are not related to Superstorm Sandy are specifically exempted from these changes.
According to the press release, approximately 22% of the estimated 430,774 homeowners, commercial property, personal and commercial auto and business interruption insurance claims that were filed are still outstanding. In addition, the press release notes that approximately 70% of flood claims remain unresolved.
to view the official press release.
for a copy of the Order.