New Jersey Senate Bill SCR58

New Jersey 2022-2023 Regular Session

• Introduced: 2/3/22
• Refer: 2/3/22

Caption

Urges Congress to investigate claims that insurance companies have used revised engineering reports to deny flood claims from Superstorm Sandy.

Impact

The resolution calls for a federal investigation into the practices of insurance companies, particularly looking into incidents where engineering reports that supported homeowners’ claims were altered through a 'peer review' process. In one noteworthy case, the U.S. District Court noted that an insurance agent ensured that a report indicated the damage was not flood-related, which ultimately led to the denial of legitimate claims. This situation reflects larger systemic issues within the insurance industry that may be affecting multiple homeowners across New Jersey and similar states.

Summary

Senate Concurrent Resolution No. 58 (SCR58) urges Congress to investigate the claims that insurance companies have used revised engineering reports to deny flood claims from homeowners affected by Superstorm Sandy. The resolution is driven by concerns that following the storm, which devastated large parts of New Jersey, some claims under the National Flood Insurance Program (NFIP) were unjustly denied. This was often based on the assertion that property damage was due to factors other than flooding, such as long-term deterioration or earth movement, rather than the storm itself.

Contention

Supporters of SCR58 express that the intended investigation could uncover widespread malpractice and offer relief to homeowners caught in the crossfire of insurance disputes and bureaucratic decisions. Conversely, critics may argue about the efficacy of investigations into private sector practices and the responsibility of homeowners to ensure adequate coverage for their properties. The outcome of this resolution could also influence how flood insurance policies are managed in the future, potentially leading to reform in oversight practices for insurance companies.

Notable_points

SCR58 raises significant concerns surrounding the accountability of insurance companies in the wake of natural disasters. Should Congress heed this resolution and pursue the investigation, it could not only affect claims related to Superstorm Sandy but could also set precedents for how flood claims are handled nationwide. Additionally, if the findings indicate that revised reports are commonly used to deny legitimate claims, this could trigger significant changes in legislation regarding insurance practices and consumer protections.