New Jersey Senate Bill SCR60

New Jersey 2022-2023 Regular Session

• Introduced: 2/3/22
• Refer: 2/3/22

Caption

Urges U.S. Department of Justice to investigate certain claims handling practices related to Superstorm Sandy flood insurance claims.

Impact

The resolution brings to light significant allegations suggesting that some insurance companies engaged in unethical practices, such as altering engineering reports to deny claims based on flawed conclusions. This has raised the alarm about the integrity of claims processing, particularly in the context of the National Flood Insurance Program, which involves premiums paid by many affected homeowners. SCR60 seeks to amplify scrutiny on these practices, which could influence both state and federal legislation surrounding insurance claims and consumer protection.

Summary

Senate Concurrent Resolution 60 (SCR60) urges the United States Department of Justice to investigate certain claims handling practices by insurance companies related to flood insurance claims stemming from Superstorm Sandy. The resolution highlights the increasing reports of delays and improper handling of claims, which are concerns for thousands of homeowners who relied on their flood insurance policies during this catastrophic event. It emphasizes the fiduciary duty of insurance companies to act in their insureds' best interests and to handle claims in good faith.

Contention

A notable point of contention within the resolution lies in the allegations that certain insurers may have manipulated claims data to escape financial responsibility. There are serious implications if such fraudulent practices are substantiated, potentially leading to accountability measures against the implicated companies. The resolution not only requests an investigation but also implies the potential for reforms in how flood insurance claims are managed in the wake of natural disasters, aiming to safeguard homeowners' rights and ensure fair compensation.