Connecticut Establishes Insurance Mediation Program In Wake of Super Storm Sandy
On October 1, 2013, Public Act No. 13-148: An Act Establishing a Mediation Program for Certain Insurance Policy Claims and Concerning Requirements for Persons Performing Repairs, Remediation or Mitigation Pursuant to a Loss (“Act”), went into effect in Connecticut. The Act establishes a voluntary consumer mediation program for Connecticut and will give policyholders another avenue for helping resolve claims following a catastrophic event.
Under the new law, after the Governor declares a state of emergency following a storm or other natural disaster hits the state, the Commissioner of Insurance will be authorized to launch the special mediation program. Mediations will be limited to personal risk insurance policies and will allow policyholders who are having a dispute with their insurance companies to present evidence to a panel of arbitrators who will provide a recommendation for settlement. Insurers have no choice but to take part in the mediation if a request is filed by its insured.
The Act was designed as a response to streamline the claims process following natural disasters, such as Super Storm Sandy in 2012. The new law is not retroactive and thus will not apply to claims arising from Sandy.
For a complete copy of the Public Act click here