Connecticut, Maryland, and Rhode Island Insurance Departments have issued bulletins regarding hurricane deductibles with respect to insurance claims due to Sandy:

Connecticut

On October 30, 2012, the State of Connecticut Insurance Department issued the following Notice:

Please be advised based on information received from the National Hurricane Center (NHC) and the National Weather Service (NWS) A [sic] “Hurricane Warning” was not issued for the State of Connecticut nor did Connecticut sustain hurricane force winds as a result of Storm Sandy. Therefore, pursuant to Public Act 12-162 Section 1. (b) and the Department’s Filing Review Guidelines Related to Underwriting Coastal Homeowners Insurance Policies re-issued on December 9, 2011 (the “Coastal Guidelines”) as it relates to the use of hurricane deductibles companies may not impose a hurricane deductible on Connecticut claims.

With respect to the use of vehicle placards for adjusters assessing damage in Connecticut, we have not confirmed with the Connecticut Emergency Management and Homeland Security (DEMHS) that vehicle placards will be needed at this time, once we hear anything we will inform you accordingly.

Please forward this notice to respective staff accordingly.

Based on NWS data the max gust wind recorded was 86 mph in Madison, CT and the max sustained winds recorded were 59 mph in Bridgeport, CT.

Click here to read the State of Connecticut Insurance Department Notice.

Maryland

On October 30, 2012, the Maryland Insurance Administration issued Bulletin 12-24, which states:

This bulletin serves to advise Maryland’s admitted Property & Casualty insurance carriers that deductibles equal to a percentage of the “Coverage A — Dwelling Limit” of a homeowners policy in the case of a hurricane or other storm, (percentage deductible) do not apply to the weather event that impacted Maryland beginning on October 29, 2012.1 Section 19-209(b) provides,

Applicability of deductible — If an insurer has adopted an underwriting standard that requires a deductible equal to a percentage of the “Coverage A — Dwelling Limit” of the policy in the case of a hurricane or other storm, the deductible may only be applicable beginning at the time the National Hurricane Center of the National Weather Service issues a hurricane warning for any part of the State where the insured’s home is located and ending 24 hours following the termination of the last hurricane warning issued for any part of the State in which the insured’s home is located.

The National Hurricane Center of the National Weather Service did not issue a hurricane warning for the State of Maryland.

If you have any question about this Bulletin, please contact Joy Hatchette, Associate Commissioner, Consumer Education & Advocacy, at (410) 468-2029 or at jhatchette@mdinsurance.state.md.us.

 ¹ This Bulletin supersedes Bulletin No. 11-25, which was issued on September 1, 2011 after Hurricane Irene.

Click here to link to Maryland Insurance Administration Bulletin 12-24.

Rhode Island

On October 30, 2012, the Rhode Island Department of Business Regulation, Insurance Division issued Alert 2012-4, which states:

Based on information issued by the National Weather Service, a “Hurricane Warning” was not issued for the State of Rhode Island. Therefore, pursuant to R.I. Gen. Laws § 27-76 and Insurance Regulation 110, Section 4F, insurers may not impose a hurricane deductible on Rhode Island residential claims.

With respect to the use of vehicle placards for adjusters assessing damage in Rhode Island, we have confirmed with the Rhode Island Emergency Management Agency that vehicle placards will NOT be needed in Rhode Island in order to gain access to damaged areas. Licensed and emergency adjusters and motor vehicle damage appraisers registered with the RI Insurance Division are free to travel throughout the State of Rhode Island to assess property damage resulting from Sandy. Should the situation change we will issue an updated alert.

All licensees are reminded to follow the guidance offered by the Department in Industry Alert 2012-3.

For questions on this alert, please contact Paula Pallozzi, Chief Property & Casualty Analyst at paula_pallozzi@dbr.ri.gov.

Click here to read the Rhode Island Department of Business Regulation Alert.

We will continue to monitor affected states’ insurance department websites for further bulletins regarding Sandy.