Urges Congress to investigate claims that insurance companies have used revised engineering reports to deny flood claims from Superstorm Sandy.
Impact
The resolution underscores the negative consequences faced by homeowners who have encountered obstacles in claiming flood insurance benefits under the National Flood Insurance Program (NFIP). With widespread claims denied, there is increasing concern regarding the integrity and accountability of insurance companies. This bill calls upon Congress to assess the extent of these practices to potentially reform regulations surrounding flood insurance and protect consumer rights, aiming to ensure that legitimate claims are honored.
Summary
Senate Concurrent Resolution No. 21 (SCR21) urges Congress to conduct thorough investigations into the practices of insurance companies regarding the denial of flood insurance claims linked to Superstorm Sandy. The bill highlights incidences where revised engineering reports were allegedly used by insurance firms to deny legitimate claims, claiming that damages were due to factors outside the storm, such as long-term deterioration. This resolution seeks to address the significant impact on homeowners in New Jersey and other similar states affected by the storm's devastation and subsequent insurance denials.
Contention
A key point within SCR21 is the reference to a specific court case, Raimey v. Wright National Flood Insurance Co., which suggests that engineered reports were altered inappropriately, resulting in uninsured damages. This raises serious concerns about the professional ethics of engineering firms working for insurance companies and whether a standard practice of manipulating reports exists. Critics argue that these actions undermine trust in the insurance system and negatively impact vulnerable populations recovering from disaster.
Carry Over
Urges Congress to investigate claims that insurance companies have used revised engineering reports to deny flood claims from Superstorm Sandy.
Requires DOBI to publish and maintain Internet webpage containing certain information on most wanted persons list for certain insurance crimes, including insurance crimes related to Super Storm Sandy.