Hawaii Commissioner's Memorandum 2004-12A

LINDA LINGLE GOVERNOR JAMES R. AIONA, JR. LT. GOVERNOR To: From: Subject: • STATE OF HAWAII INSURANCE DIVISION DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS P.O. BOX 3614 HONOLULU, HAWAII 96811-3614 335 MERCHANT ST., 2ND FLOOR HONOLULU, HAWAII 96813 November 10, 2004 MARKE. RECKTENWALD DIRECTOR J.P. SCHMIDT INSURANCE COMMISSIONER Memorandum 2004-l 2A Insurers Authorized to Conduct Flood Insurance Business in the State of Hawaii J.P. Schmidt ~~~ Insurance Commissioner Manoa Valley Flood The Insurance Division participated in State Civil Defense's Disaster Assistance and Recovery Center (DARC) in response to the October 30, 2004, flooding in Manoa Valley. At the DARC, the flood victims asked common questions about their homeowner' s, automobile and flood insurance and if and how insurance companies can aid in the recovery of damages that occurred. Several flood victims said they called their insurance company and were told they had no coverage over the phone, without any agent or adjuster assessing the damage to the property, or were told that no adjuster was available. For the homeowners that had purchased flood insurance from the National Flood Insurance Program (NFIP), one recmTing comment from these flood victims was that they contacted their insurance agent and were told to call NFIP' s 1-800 number and then connected to a company on the mainland. Timely inspection of a property and consultation with the homeowners is essential to proper claims determination and handling. The law requires prompt handling of claims, proper determination of whether coverage exists or not. Refusing to pay a claim without a conducting a reasonable investigation based upon all available information is a violation of the law. The Hawaii Insurance Division encourages insurers to maintain its high standard of prompt and proper claims determination and handling ermination and handling. The law requires prompt handling of claims, proper determination of whether coverage exists or not. Refusing to pay a claim without a conducting a reasonable investigation based upon all available information is a violation of the law. The Hawaii Insurance Division encourages insurers to maintain its high standard of prompt and proper claims determination and handling. In the case of homeowners that have purchased flood insurance, we encourage insurers to send out its agents or adjusters to assist these victim in filing a damage claim with the NFIP and not merely tell the homeowners to call the 1-800 number. If you have any questions or comments on this issue, please call the Insurance Division at (808) 586-2790.