INSURERS' SANDY CLOSURE RATE CLAIM "MISLEADING" SAYS

The 95% closure rate for New Jersey-related superstorm Sandy claims which insurers have been reporting is misleading, according to property lawyer Chip Merlin. In his propertyinsurancecoveragelaw.com website Mr Merlin said that "I have had many conversations with clients, public adjusters and other attorneys in the industry and, frankly, nobody believes this statistic". Mr Merlin reported a recent litigation conference at which Kenneth E. Kobylowski, Commissioner of the New Jersey Department of Banking and Insurance, reasserted the 95% claim in his keynote address. However, he conceded after a question from the audience that this percentage included claims where the insurer had denied the claim and no lawsuit had yet been filed. Mr Merlin observed that this meant "an improper denial or underpayment would count as closed". Commissioner Kobylowski also reported that for the Sandy mediation program instituted by the Department of Banking and Insurance, of the more than 20,000 claims in total that remained open, only about 300 had applied for the mediation programme. Commissioner Kobylowski said that he was disappointed with the low number, but also reported that 85% of the mediated cases had come to a satisfactory resolution, a number with which he was happy.