New Jersey Senate Bill SCR22

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

If adopted, SCR22 would not enact new laws but serve as a powerful statement encouraging federal investigation into alleged misconduct by insurance companies. The resolution reflects lawmakers' concerns about the fiduciary duty of insurers to act in the best interest of their clients, as well as the need for fair and just claims handling practices. Should the DOJ find evidence of wrongdoing, this could lead to potential legal consequences for the insurers involved, including financial penalties and reforms in claims handling processes.

Summary

SCR22 is a Concurrent Resolution introduced in New Jersey that urges the United States Department of Justice (DOJ) to investigate the claims handling practices of insurance companies related to flood insurance claims from Superstorm Sandy. The resolution aims to address increasing concerns about delays and improper practices by insurers, which have reportedly led to the fraudulent denial of coverage for many homeowners affected by the disaster. The bill highlights the reliance of thousands of homeowners on the National Flood Insurance Program for compensation related to property damage caused by the storm.

Contention

The bill draws attention to troubling allegations that insurance companies may have manipulated engineering reports to improperly deny claims. These allegations stem from specific court cases and numerous reports from residents, indicating widespread challenges in obtaining rightful insurance coverage. The resolution supports a comprehensive investigation to determine the extent of these practices and seeks accountability for any violations that may have occurred, thus sparking a necessary dialogue between state and federal authorities about insurance regulations and consumer protection.