Puerto Rico Threatens To Suspend Insurers

WASHINGTON, April 30 -- The National Association of Insurance Commissioners issued the following news release:

Commissioner of Insurance Javier Rivera-Rios warned local insurers that they risk losing their authorization if they do not settle the claims related to hurricane Maria in a timely manner.

"In this second phase I am personally following very closely the property insurers that have not yet settled important and necessary claims for vital service sectors, and they can be sure that I will see this through, whatever the consequences may be, including suspending the authorization of the insurers to continue to do insurance business in Puerto Rico, until they have settled all outstanding claims. I will not tolerate further delay in the timely resolution of these claims," said Rivera-Rios in a written statement.

Rivera-Rios said that as of March 31 of this year, 243,989 claims had been received due to damage and losses caused by hurricane Maria. Of these claims, 80.7% have been closed with payments amounting to $2.2 billion.

"Our office is following how claims and disbursements are being handled by local insurers. We have already issued $5 million in fines against the principal property insurers, and we are continuing in a second phase, where we are exercising our oversight in an effort to closely monitor the claims process," according to the Commissioner.

"The action taken by our office reflects the interest that our Governor, Ricardo Rossello, has in having claims defended in a timely manner, for consumers and for important sectors of our economy, such as manufacturing and commerce, which were affected by hurricane Maria," said Rivera-Rios.