Alabama Awaits Detail of Data Call from Windstorms

Regulators and consumer groups in Alabama are awaiting the results of a data call from insurers to see if they are quickly handling claims and resolving other residents’ claimants.

Commissioner Jim Ridling issued the data call last month in the wake of a number of communities that flattened commercial buildings, resident housing, and vehicles and killed at least 28 individuals.

The computer modeling firm AIR, estimated that the losses in Alabama would be between $1.9 billion and $2.6 billion. Those numbers would exceed the $2 billion losses of Hurricane Ivan, which until now was the costly storm to have impacted the state.

As a result, Gov. Robert Bentley added the storms to his Affordable Homeowner Insurance Committee, which is contemplating calling a special session of the state legislature in January to address catastrophic losses.

“Every dollar of losses is attached to a family, a home, or a business,” said Bentley when he announced the addition of the tornado damage to the committee’s agenda. “These numbers help provide a framework for insurance industry to execute its response and keep its promises to Alabama families and businesses.”

Under the data call, insurers are required to submit the number of claims they received on or before June 30, the total number of open claims awaiting information from the insured and all other open claims.

By September 30, insurers would are required to submit the number of claims they received, the number of claims were there are awaiting claims from the insurer and all other claims.

By definition, an open claim means a claim where an insured is disputing the settlement offered by the insurer. It the insurer has paid the actual cash value for property loss, the claim is considered closed unless the insured files a request for the full replacement cost.

If an insurer has paid an insured for the total loss of a vehicle and then is selling the damaged vehicle for salvage, the claim can be considered closed.

Ridling said the results of the data call should help insureds resolve their claims, plus provide needed information to the governor’s commission.

“We have confidence in these numbers, and having visited several areas, they pass the eyeball test,” said Ridling. “The important thing now for our agency is to work with consumers through the claims process.”

Topics Catastrophe Carriers Natural Disasters Claims Windstorm Alabama