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

The Pawtucket-based company delayed insurance inspections for claims related to storm damage, New York authorities said.

Some of the damage that Superstorm Sandy caused in New Jersey in 2012. File photo.
Some of the damage that Superstorm Sandy caused in New Jersey in 2012. File photo.
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.
Cheap Guy May 31, 2014 at 02:38 PM
NBIC is a fly-by-night, outfit The only thing the do well is COLLECT PREMIUMS ! !
mohamed j. freij June 03, 2014 at 09:06 PM
I had my home insurance policy with Union Mutual Fire Insurance Company of Vermont, policy purchased from AAA. Last September the area of Sowams Road was hit by a wind driven hail storm that caused damage to most roofs in the area. Make sure you check your roof, if your roof is damaged you can file a claim to replace the roofing shingles unless if you have Union Mutual fire Insurance company of Vermont which would deny any claims for hail damage to roofing shingles. Lesson learned......I switched to AMICA.... very professional and best service....... Stay away from Micky Mouse insurance companies
Leave RI June 05, 2014 at 09:32 AM
Those stories sound hideous. I use Jake...from State Farm.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »