Insurer to Pay $327,400 in Fines for Late Investigations of Super Storm Sandy Claims

Insurer to Pay $327,400 in Fines for Late Investigations of Super Storm Sandy Claims

On May 22, 2014 Naragansett Bay Insurance Company (“Naragansett”) signed a Consent Order with the New York State Department of Financial Services (DFS) agreeing to pay a civil penalty of $327,400 and to enact substantial capacity upgrades for its failure to timely perform adjuster inspections on numerous properties damaged by Super Storm Sandy.

Named Storm Deductible Issue Survives Motion to Dismiss: District of New Jersey Federal Court Issues Decision in Hurricane Sandy Claim

Following Superstorm Sandy, many state insurance departments along the East Coast issued bulletins indicating that insurance companies should not impose hurricane deductibles on homeowners, mainly because the classification of Sandy shifted from a hurricane to a post-tropical storm as it traveled the East Coast.