State regulators last week finalized agreements that will lead three property insurers paying fines for violating claims-handling laws after hurricanes.
Insurance Commissioner Michael Yaworsky signed what is known as a “consent order” in which American Coastal Insurance Co. agreed to pay $400,000 because of violations after 2022’s Hurricane Ian, according to a copy of the order posted on the state Office of Insurance Regulation website.
In part, the order pointed to a law that requires insurance adjusters to be licensed and “appointed.” It said officials found 36 instances in which American Coastal were not properly appointed.
Also, in part, the order said officials found 34 instances of the company not paying or denying claims within a required 90 days.
Another consent order will require TypTap Insurance Co. to pay a $150,000 fine over claims-handling violations after Hurricane Ian and 2023’s Hurricane Idalia.
In part, officials found that TypTap, in 27 instances, did not acknowledge receiving communications about Ian claims within a required 14 days, according to the consent order.
Also, Sutton National Insurance Co. will pay a $50,000 fine stemming from its claims-handling after Ian. A consent order said, in part, that officials found Sutton National did not use properly appointed adjusters in 34 instances.