The Massachusetts Division of Insurance has issued Bulletin 2011-16 that outlines its guidance and recommendations for insurance companies in addressing the damage caused by Tropical Storm Irene in the following counties: Berkshire, Franklin, Hampden and Hampshire. The Division’s Bulletin addresses claims handling, premium payments, vacancy provisions and underwriting including the following:
Claims Handling
- Prompt investigation of all claims is required
- Regarding claim denials, proper documentation needs to be provided to the insured which will be sufficient to allow the insured to apply for federal disaster assistance
- Insurers are expected to offer displaced claimants reporting timeframe extensions
- Insurers should establish expedited claim processing procedures and simplified claim reporting forms where appropriate
Premium Payments and Vacancy Provisions
Temporary suspension of premium payments, suspension of vacancy provisions for those temporarily displaced and granting requests for reasonable payment plans are encouraged.
Underwriting
The Division states that it is not appropriate for insurers to re-rate, cancel, non-renew, increase rates, change rating classifications or refuse to provide insurance coverage due solely to an individual’s status as a victim of the storm or as an evacuee of this disaster
