Minnesota Commerce Department asks insurers to serve disaster victims

Commerce Commissioner Mike Rothman issued a bulletin asking P/C insurers to strengthen their disaster planning, preparedness and response

Insurance News

By Lyle Adriano

Mike Rothman, insurance commissioner for the state of Minnesota, issued a bulletin Feb. 25 to all property and casualty insurers operating in the state that urged them to quickly respond to policyholders in the event of a disaster—a time when consumers are at their “most vulnerable”.

“Minnesota consumers need to trust that their insurance companies are fully prepared to help them if disaster strikes,” Rothman stated in the bulletin.

The Commerce Department bulletin requested that each property and casualty insurer assign a disaster liaison that holds a position in the company, has access to information critical in the event of a disaster, and is available to staff disaster response efforts.

The bulletin also required insurers to each prepare a pre-disaster survey for the Commerce Department annually. This report would contain summary data on an insurer’s policies and coverage in Minnesota by ZIP code. In addition, the bulletin reminded insurers that they must be ready to provide the department with detailed claims and loss data after a disaster.

On top of the previous requests, the Commerce Department is requiring insurers to offer a grace period to consumers right after a disaster. This would provide consumers with additional time for them to make premium payments and preempt the cancellation of their insurance coverage.

Rothman’s bulletin instructed insurers to quickly satisfy insurance claims in good faith, especially following a natural disaster. This would involve establishing contact with policyholders making claims, properly surveying and assessing damage, offering timely and accurate responses to consumers, making prompt payments for additional living expenses and temporary repairs, and resolving claims in a timely fashion.
 

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