Narragansett Bay Insurance Company Fined $327K for Superstorm Sandy Claims

The Narragansett Bay Insurance Company was fined $327,400 for delaying insurance inspections for claims related to Superstorm Sandy.

The Pawtucket-based company was fined by New York authorities.

“When a natural disaster like Superstorm Sandy strikes, insurers must respond rapidly to help their policyholders recover and rebuild,” Gov. Andrew Cuomo said in a statement. “Delays can be devastating in the aftermath of an emergency, and as we prepare for the new reality of extreme weather it is imperative that insurers are swiftly reviewing and paying claims."

The company said it disagreed with investigators' account but will pay the fine to "move beyond the matter."

“While NBIC does not agree with the findings of the DFS, we have decided that it is in the best interests of our policyholders, agency-partners, reinsurers, and investors to accept their conclusion, move beyond this matter, and continue to focus our time and efforts on meeting the continued coastal homeowners insurance needs of our customers,” the company said in a statement, according to the Insurance Journal.

Authorities said their investigation started last year "after policyholders complained of being unable to reach adjusters, as well as adjusters failing to show up to scheduled appointments for which policyholders had often already waited weeks."

The company and New York authorities agreed to a consent order that can be read here.

"The investigation uncovered that Narragansett failed in numerous instances to perform adjuster inspections of damage related to Superstorm Sandy in the time frames required by law and regulation," officials said in a statement. "The agreement also stipulates that Narragansett must, within 60 days, improve its systems and procedures to ensure that it can successfully process New York policyholders’ catastrophe claims within the legally required time frames."

The company said it provides insurance for about 125,000 families in New York, New Jersey, Massachusetts, and Rhode Island, according to the Insurance Journal.