Requires insurers that sell flood insurance to provide certain policyholders with certain information.
Impact
The bill aims to bolster consumer protections for flood insurance policyholders in New Jersey by ensuring they receive thorough information about their claims. By requiring insurers to provide all relevant documentation, it seeks to minimize disputes and improve communication between policyholders and insurers. This could benefit many individuals and families who experienced property damage during Superstorm Sandy by enabling them to better understand their claims process and the evidence supporting their claims.
Summary
Bill A789 is a legislative proposal in New Jersey that mandates insurers selling flood insurance to provide specific information to certain policyholders who are claimants for property damage. This bill is particularly significant due to its reference to policyholders who held insurance on October 28, 2012, the date when Superstorm Sandy caused substantial damage in the region. The intention behind this bill is to ensure that affected policyholders have transparency regarding the documents and reports related to their claims, which might include engineers' evaluations and other related communications.
Contention
One notable aspect of the bill could potentially arise from the penalties that might be imposed on insurers for non-compliance. The stipulation that civil penalties can range up to $2,500 for the first violation and $5,000 for subsequent violations suggests an effort to enforce strict compliance. This could lead to debate among insurers regarding the feasibility and fairness of such penalties, especially if they perceive the documentation requirements as burdensome or if they question the intent behind the specific date referenced in the bill.
Relating to the operation of the Texas Windstorm Insurance Association, to the resolution of certain disputes concerning claims made to that association, and to the issuance of windstorm and hail insurance policies in the private insurance market by certain insurers; providing penalties.
Requiring agents and insurers to respond to inquiries from the commissioner of insurance within 14 calendar days and authorizing certain rebate pilot programs to exceed one year in duration.
Requiring agents and insurers to respond to inquiries from the commissioner of insurance within 14 calendar days and authorizing certain rebate pilot programs to exceed one year in duration.