New Jersey Insurance Commissioner Ken Kobylowskisays residents with unresolved non-flood insurance claimsrelated to Superstorm Sandy can have their cases mediated throughthe American Arbitration Association (AAA), at their insurer'scost.

"[Gov. Chris Christie] promised New Jersey residents tohave the mediation program up and running by the end of April andwe have accomplished that task," said Kobylowski. "Thisprogram represents another option consumers have to resolvedisputes with their insurance companies regarding the coverageprovided by their policies or the size of claim payments."

The mediation program will allow property owners to submithomeowner's, automobile and commercial property claims to amediator who will review the case and assist in settlementdiscussions.

Disputed non-flood Sandy-related claims greater than $1,000 thatdo not include a reasonable suspicion of fraud and are based onpolicies in force at the time Sandy made landfall will be eligiblefor mediation. Insurance carriers will pay for the cost of themediator.

Policyholders who wish to bring legal representation to themediation session may hire an attorney at their own expense.

"Six months after Sandy insurance carriers have settled morethan 93 percent of Sandy related claims," said Kobylowski."But there is still much more work to do. We will not rest untilevery claim has been resolved following this unprecedentedstorm."

The mediation program will not include flood insurance claims atits inception because those claims are regulated by the federalNational Flood Insurance Program (NFIP). However, the Departmentcontinues to discuss with NFIP the possibility of theirparticipation in mediations at a later time.

State-regulated insurers were required to notifypolicyholders with open or unresolved homeowner's, autoand commercial claims that they can ask for a mediation conferenceand detailed instructions for filing that request. Participation bypolicyholders is voluntary.

Insurers authorized or admitted to transact business in NewJersey and the New Jersey Insurance Underwriting Association willbe required to participate in the Mediation Program. Surplus linesinsurers and risk retention groups may elect whether ornot to participate.

Application forms are now available online at www.adr.org, by phone at 855-366-9774 or via email at [email protected].