Hurricane Ivan Reports

BULLETIN TO: All Property and Casualty Insurers Operating in Alabama FROM: Walter A. Bell, Commissioner DATE: March 9, 2005 RE: Hurricane Ivan Reports Our February 23, 2005, bulletin was issued regarding complaints related to the handling of claims arising out of damage caused by Hurricane Ivan. The February 23rd bulletin instructed insurers to file a report regarding claims that remained open 30 days after the issuance of the bulletin. This bulletin provides instructions to insurers for properly preparing and submitting the report. A cover letter should be prepared providing the total number of claims submitted to the insurer as a result of Hurricane Ivan along with the total number of claims remaining open as of March 25, 2005. The cover letter should also provide the name, title and contact number for the person within the company authorized to provide the Department with general claims information as well as for the person or persons authorized to handle individual claims inquiries from the Department. Attached to the cover letter should be a more detailed report providing the following information: A. For open claims submitted between September 16, 2004, and November 15, 2004: 1. Total number of claims filed during this time period. 2. Number of claims still open due to ACV/RCV issue. 3. Number of other claims, not ACV/RCV issue, where the insurer is awaiting information from the insured. 4. Number of other claims still open not addressed in #2 or #3 above, with the company’s expected timetable for closure of these claims. B. For open claims submitted by the insured, or by a producer on behalf of an insured, between November 16, 2004, and January 15, 2005, the following information is required: 1. Total number of claims filed during this time period. 2. Number of claims still open due to ACV/RCV issue. 3. Number of other claims, not ACV/RCV issue, where you are awaiting information from the insured. 4 . B. For open claims submitted by the insured, or by a producer on behalf of an insured, between November 16, 2004, and January 15, 2005, the following information is required: 1. Total number of claims filed during this time period. 2. Number of claims still open due to ACV/RCV issue. 3. Number of other claims, not ACV/RCV issue, where you are awaiting information from the insured. 4. Number of other claims still open not addressed in #2 or #3 above, with the company’s expected timetable for closure of these claims. C. For open claims submitted by the insured, or by a producer on behalf of an insured, between January 16, 2005, and March 25, 2005, please provide the total number of claims filed during this time period and the number of claims still open. For the purpose of this bulletin and the bulletin of February 23, 2005, an “open claim” means a claim for which a dispute exists between the insurer and the insured or a claim for which the BULLETIN March 9, 2005 Page 2 company “reasonably expects to make a future payment.” An insurer company does not “reasonably expect to make a future payment” on an claim when it pays the insured an amount equal to or greater than the amount claimed by the insured on a proof of loss or similar document. For the purpose of this bulletin, the “ACV/RCV” issue means the insurer has paid the actual cash value (ACV) of the property insured under a replacement cost policy and has held the claim open more than 60 days since payment of ACV awaiting the replacement of the property by the insured, at which point the difference between ACV and RCV (replacement cost value) will be paid to the insured. For reporting purposes under this bulletin, a claim shall not be considered open for the first 60 days after the ACV is paid. Insurers with no open claims related to Hurricane Ivan do not need to file any report. This directive applies only to companies with pending Hurricane Ivan claims at which point the difference between ACV and RCV (replacement cost value) will be paid to the insured. For reporting purposes under this bulletin, a claim shall not be considered open for the first 60 days after the ACV is paid. Insurers with no open claims related to Hurricane Ivan do not need to file any report. This directive applies only to companies with pending Hurricane Ivan claims. Reports should be submitted by April 11, 2005, to the Commissioner’s office as follows: Postal Address: Commissioner of Insurance PO Box 303351 Montgomery AL 36130-3351 Overnight Address: Commissioner of Insurance 201 Monroe St Ste 1700 Montgomery AL 36104 334-269-3550 WAB/JJ/RN/bc