Tower Group Cos. says it “emphatically rejects” allegations ofunsatisfactory Superstorm Sandy claims-handling practices broughtby New York.

The New York Department of Financial Services says the actionsof three insurers—Tower Insurance Co., Narragansett Bay InsuranceCo. and Kingstone Insurance Co.—following the late October stormare “totally unacceptable.” The DFS is investigating each insurer,announced Gov. Andrew M. Cuomo.

New York to Investigate Three Insurers for Handling ofSandy Claims

In a statement to PC360 Tower Group says the DFS sentit a letter in January outlining the same allegations revealed whenit announced an investigation Feb. 21.

On Jan. 31 “we provided voluminous information that refutes anyfactual basis for the allegations contained in [the letter],” saysTower, adding that it has since heard no word from the DFS.

“We emphatically reject the allegations set forth in [theletter] and [Gov. Cuomo] press release,” the insurer continues. “Wewere surprised and disappointed to see that the governor's officerepeated the same allegations…without any acknowledgement thatTower complied with the DFS's requests, with information that fullyrefutes the allegations contained in the DFS's originalinquiry.”

Policyholders of Tower have complained of the insurer's allegedfailure to send adjusters after Sandy. Some say claims were deniedover the phone, with no adjuster visit, says the DFS. Additionalcomplaints against Tower include wrongful denial of claims underthe sewer backup exclusion, difficulty reaching the company, and ofdelays in the claims process.

New York-based Tower says it takes its obligations topolicyholders seriously. It added that many employees werepersonally affected by Sandy, but “thousands of our employees,adjusters and agents spared no effort in meeting our obligations tothe Sandy-affected communities—often the same communities wherethey live and work.”

Tower has closed 95 percent of Sandy claims and paid more than$160 million to policyholders.

Narragansett Bay and Kingstone have not responded to requestsfor comment.