Sanders, Welch, Balint Call On Federally-Backed and Private Insurers to Act Quickly and Fairly During Vermont Flood Recovery

BURLINGTON, Vermont, July 26 -- Rep. Becca Balint, D-Vermont, issued the following news release and letter on July 24, 2023:

Sen. Bernie Sanders (I-Vt.), Sen. Peter Welch (D-Vt.), and Rep. Becca Balint (D-Vt.) today sent letters to 95 insurance companies holding federally-backed and private insurance policies across Vermont - including the top flood, homeowner, and auto insurance companies - calling on them to act quickly and fairly when assessing what damage from the recent floods can be covered under their individual policies. While most individuals and small businesses in Vermont have no flood insurance, the vast majority of those who do are covered through the federal government's National Flood Insurance Program (NFIP). NFIP is managed by the Federal Emergency Management Agency (FEMA), with policies operated by private insurance companies.

In the letters, the congressional delegation called on these companies to take specific and critical steps to help insured Vermonters get back on their feet, including temporarily suspending premium payments, promptly processing all claims, providing advanced payments when possible, and properly investigating all claims to determine if coverage exists. They also asked them to respond to the delegation no later than July 31, 2023, to confirm whether their respective companies are taking these steps and to detail any additional actions they have planned to help impacted Vermonters recover from this crisis.

"It is imperative that impacted Vermonters know how to best avoid incorrect insurance claim denials," Sanders, Welch, and Balint wrote in the letters. "To achieve this, we are counting on your company to take the steps outlined below to ensure that Vermonters receive all the help to which they are entitled to rebuild their lives following this catastrophic flooding. This is the time for showing compassion and flexibility for working families and small business owners so that disaster survivors in Vermont can get back on their feet as quickly as possible. As an insurance provider, you play an important role in this recovery process, and your actions today will decide the state's trajectory for years to come."

Sanders, Welch, and Balint concluded the letters by making clear to the insurance companies that each of their offices are in continuous and direct contact with impacted Vermonters, and that the delegation will be notifying the Department of Financial Regulation of any problems that arise, as well as following up directly with the insurers to address them.

Sanders, Welch, and Balint wrote: "We are closely tracking incoming correspondence from Vermonters regarding their insurance claims and payments by company, insurance type, and monitoring specific issues that constituents are experiencing. Should we notice any problematic patterns, we will be notifying the Department of Financial Regulation, as well as contacting your company directly to talk through possible solutions. Thank you in advance for doing the right thing by those Vermont families and businesses you insure as they, and our state, recovers from catastrophic flooding."

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July 24, 2023

Dear Insurer:

As an insurer of Vermonters, you know that Vermont is currently experiencing our worst natural disaster since 1927. Many hundreds of homes and businesses have been damaged by the terrible flooding throughout the state.

As Vermont families and businesses transition from response to recovery, they will be relying on their insurance companies to act expeditiously and treat them fairly in assessing what damage can be covered under their individual policies. This is particularly important in a time of disaster, as many Vermonters will qualify for federal funding only after receiving determinations from their insurers. Additionally, impacted individuals, businesses, and homeowners have a limited window to apply for federal dollars, making it critically important that they receive responses from you in an expeditious fashion.

It is imperative that impacted Vermonters know how to best avoid incorrect insurance claim denials. To achieve this, we are counting on your company to take the steps outlined below to ensure that Vermonters receive all the help to which they are entitled to rebuild their lives following this catastrophic flooding. This is the time for showing compassion and flexibility for working families and small business owners so that disaster survivors in Vermont can get back on their feet as quickly as possible. As an insurance provider, you play an important role in this recovery process, and your actions today will decide the state's trajectory for years to come.

Specifically, we request that your company take the following steps to help Vermonters recover from this horrific disaster. Please respond no later than July 31st to confirm whether your company is taking these steps, and with any additional actions you have planned. For any step your company is not taking, please explain the reason for your decision.

1. Premiums: Temporarily suspend premium payments and vacancy provisions for those impacted by the disaster and work with policyholders to come up with a workable repayment plan.

2. Expedient Processing: Quickly and accurately process all claims made and provide advance payments whenever possible to ensure the volume of claims does not delay payment and extend hardship. This will be critical in not only paying Vermonters for their covered claims but will enable them to apply for federal disaster relief assistance, which requires documentation of insurance claim denials. Failure to promptly process claims could prevent Vermonters from receiving critical federal disaster relief assistance.

3. Underwriting: As previously mentioned by Vermont's Department of Financial Regulation, insurers should not re-rate, cancel, non-renew, or refuse to provide insurance coverage solely due to an individual's status as a victim or evacuee of this disaster. United States Congress Likewise, insurers should not change the policyholder's rating classification or increase rates because they are a victim of recent flooding.

4. Flexibility: Use all existing authorities to execute your duty to properly investigate all claims to determine if coverage exists. Given the severity of this situation and the fact that federal funding will focus on only necessary expenses, insurers must be comprehensive, flexible, and compassionate when settling claims, in addition to being prompt. Furthermore, insurers should work with claimants impacted by the flooding that may be unable to meet reporting timelines as specified in their policies.

We are closely tracking incoming correspondence from Vermonters regarding their insurance claims and payments by company, insurance type, and monitoring specific issues that constituents are experiencing. Should we notice any problematic patterns, we will be notifying the Department of Financial Regulation, as well as contacting your company directly to talk through possible solutions.

Thank you in advance for doing the right thing by those Vermont families and businesses you insure as they, and our state, recovers from catastrophic flooding. Responses and any questions regarding these requests may be directed to insurers@sanders.senate.gov. If you have any questions, please also feel free to call my office directly at 202-224-5141

Sincerely,

BERNARD SANDERS

United States Senator

PETER WELCH

United States Senator

BECCA BALINT

Member of Congress

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Original text here: https://balint.house.gov/news/documentsingle.aspx?DocumentID=110