Natural catastrophes are always an opportunity to report on what carriers can do to cement their reputation with customers in their hour of need. Kathy Donovan of Wolters Kluwer gives a reminder of how regulators see catastrophes as an occasion to tell insurers what they must do.
Donovan reports that some East Coast regulators issued bulletins and alerts to give insurers guidance on their responsibilities related to Hurricane Sandy, here’s a partial account from her Compliance Corner blog:
The Delaware Department reminded insurers of the need to activate their Disaster Response Preparation Plan or Catastrophe Plan. These plans include providing timely assistance to insureds which may include, but not be limited to, the obligation to suspend the cancellation and nonrenewal of policies for reasons related to the occurrence of the disaster or catastrophic event and utilizing an expedited and simplified claims process.
The Maryland Insurance Administration issued Bulletin 12-23, indicating its activation of emergency regulation COMAR 31.01.02.06A(3) and (4.) This means that health carriers are required to “waive any time restrictions on prescription medication refills and authorize payment to pharmacies for at least a 30-day supply of any prescription medication, regardless of the date upon which the prescription medication had most recently been filled by a pharmacist and waive any restrictions on the time frame for the replacement of durable medical equipment or supplies, eyeglasses, and dentures.”
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio