New York–New York is considering a requirement that insurers clarify language in homeowners property coverage policies, the state's top insurance regulator said here today.
New York Insurance Superintendent Howard Mills made his comments at a policyholder advice conference held by the law firm of Anderson Kill & Olick.
Mr. Mills revealed the department's activity in response to an audience question concerning conflict over exclusionary policy language that has led to legal action by Mississippi Attorney General Jim Hood. Mr. Hood has sued insurers to compel them to honor hurricane damage claims that carriers contend are not covered because of flood exclusion language.
Mr. Mills said his department is examining policy language and that "the devil is in the details." The goal, he said, is to "make policies much clearer and much more understandable for the average consumer."
The superintendent also promoted the notion of a federal program to provide an insurance backstop for "mega catastrophes." The concept is being promoted by regulators in California, New York, Illinois and Florida after a regulator catastrophe summit in San Francisco.
Mr. Mills said he did not expect any immediate reaction to the four states' catastrophe summit proposals, but rather hoped to "get a dialogue going." He added that he believed the mega-catastrophe fund proposal would gain impetus as more stories emerge about how federal tax dollars put toward Gulf Coast post-hurricane relief are being "wasted and squandered."
He cited a report that such federal relief funds had been used to send New Orleans police officers to Las Vegas for post hurricane rest and recreation. As more news of waste comes to light, "there will gradually be an acknowledgemet that it's better to pre-plan" for mega-catastrophes than to simply rely on federal funding, he said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.