California Looks to Fine AIG Unit Over 2008 Fire Claims Handling

Friday, March 9, 2012

California Looks to Fine AIG Unit Over 2008 Fire Claims Handling

New Hampshire Insurance Co. and its claims processing agent York Risk Services, has been cited for 125 violations related to alleged mishandling of claims after a California wildfire in 2008.

New Hampshire Insurance is a subsidiary of American International Group Inc. (AIG).

“The allegations in this case reflect a troubling lack of attention to consumer needs by New Hampshire Insurance Company,” says Adam M. Cole, general counsel at the California Department of Insurance (CDI).

CDI says each violation represents “an alleged unfair or deceptive act,” and each could carry a fine of up to $10,000.

New Hampshire insured about 370 mobile homes lost to the Sayre Fire in Sylmar, Calif. in November 2008. The Sayre Fire charred 11,000 acres and destroyed 489 homes, including 480 mobile homes in the Oakridge Mobile Home Park, says CDI.

CDI says after the fire it received a number of complaints from the insurer’s policyholders.

CDI says it investigated the complaints, which led to the agency formally putting New Hampshire Insurance on notice of the penalties it could get.

The company and York are entitled to an administrative hearing, CDI says.

According to state insurance law, the company could face up to a $5,000 fine for each alleged offense if it is deemed unfair or deceptive. Up to a $10,000 fine for each violation is levied if it is determined the offenses were willful.

This is not the first action taken by CDI against New Hampshire Insurance. In 2009 the insurer agreed to extend replacement cost coverage available to its policyholders after they complained to CDI.

California Fire News 2011

- Follow @CalFireNews

No comments:

How fires get their names

Every year in California thousands of wildfires start throughout the state. In most cases, the dispatch center sending the initial resources to a wildland fire will designate a name for the fire, but the first on scene engine or fire official can also name the incident. Fires are usually named for the area in which they start – a geographical location, local landmark, street, lake, mountain, peak, etc. Quickly naming the fire provides responding fire resources with an additional locater, and allows fire officials to track and prioritize incidents by name. For example during the Southern California Fire Siege of 2003, the largest wildland fire in California history, the Cedar Fire in San Diego County, was named after the Cedar Creek Falls area where it started. The destructive Old Fire, which burned during the same time period in San Bernardino County, was named after the road along which it started - Old Waterman Canyon Road.

CAL FIRE is the largest fire department in California and the second largest fire department in the United States. CDF - CAL FIRE Firefighters answer the call more than 300,000 times a year. CAL FIRE Firefighters make up the fire department for 30 of our 58 counties in California and more than 100 local communities. We serve as the incident command during many of California’s most serious disasters. CAL FIRE Firefighters respond to many various types and forms of calls ranging from structural fires, to auto accidents, to earthquakes, to floods, to the spilling of hazardous materials, to every conceivable disaster; CAL FIRE answer's the calls. CAL FIRE is the largest fire department in California and the second largest fire department in the United States . CAL FIRE firefighters protect 33 million acres of State Responsibility Area (SRA). We have over 4,000 members within CAL FIRE and CAL FIRE is associated with the California Professional Firefighters (CPF) and the International Association of Firefighters (IAFF).

CFN - CALIFORNIA FIRE NEWS - CAL FIRE NEWS

Friday, March 9, 2012