For the island of Puerto Rico, recovering after Hurricane Maria has been incredibly difficult. In the six months since the hurricane ravaged the island, millions of Puerto Ricans have struggled to rebuild among an island-wide power outage, scarcity of clean drinking water, and slow response from insurance companies. However, Puerto Rico’s Commissioner of Insurance has made it clear that insurance companies will not be able to shirk their duties.
Last month, Commissioner of Insurance Javier Rivera issued a whopping 2,587 violation orders to six different insurers. Under Puerto Rican law, insurers are expected to handle claims promptly and in good faith. If a policyholder in Puerto Rico does not agree with an insurance company’s determination of their claim, they can request an investigation by the Commissioner of Insurance. These investigations have already illustrated a widespread issue of unfair dealings on behalf of the insurance companies.
To address this dishonest behavior, the violation orders also assessed fines to the insurers. The Commissioner of Insurance has issued over $2 million in fines to insurers for unnecessarily delaying processing Hurricane Maria claims.
Insurers Acting In Bad Faith
Insurance companies are first and foremost businesses. So when natural disasters occur, insurance companies face millions of dollars in claims payouts. Most companies are not in a rush to pay out, and in fact many will use bad faith tactics to limit or completely deny payouts. Insurance companies try to limit payouts to save on their bottom lines, but this is not just morally wrong – it is also illegal. Policyholders that pay their premiums regularly deserve full coverage under their policies delivered in a reasonable timeframe.
Know Your Rights After Hurricane Maria
Even under the best circumstances, rebuilding after a natural disaster is challenging. After Hurricane Maria, property owners faced substantial hurdles from the lack of electricity and damage to the island’s highways. Many property owners are still facing significant issues, but dishonest insurance companies shouldn’t be one. Puerto Rico’s Insurance Code provides numerous protections for policyholders, but insurance companies often count on policyholders being unaware of their rights. In Puerto Rico, insurers are expected to resolve claims in a 90-day claims window unless there are extenuating circumstances. Failing to meet his deadline can result in fines like the ones issued by the Commissioner of Insurance.
