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Insurance Commissioner Threatens Suspension of Several Insurers

Javier Rivera-Ríos said that as of March 31, 20% of claims have not been settled.

Javier Rivera Rios, commissioner of Insurance

Commissioner of Insurance Javier Rivera-Ríos warned local insurers that they risk losing their authorization if they do not settle the claims related to hurricane María in a timely manner.

"In this second phase I am personally following very closely the property insurers that have not yet settled important and necessary claims for vital service sectors, and they can be sure that I will see this through, whatever the consequences may be, including suspending the authorization of the insurers to continue to do insurance business in Puerto Rico, until they have settled all outstanding claims. I will not tolerate further delay in the timely resolution of these claims," said Rivera-Ríos in a written statement.

Rivera-Ríos said that as of March 31 of this year, 243,989 claims had been received due to damage and losses caused by hurricane María. Of these claims, 80.7% have been closed with payments amounting to $2.2 billion.

"Our office is following how claims and disbursements are being handled by local insurers. We have already issued $5 million in fines against the principal property insurers, and we are continuing in a second phase, where we are exercising our oversight in an effort to closely monitor the claims process," according to the Commissioner.

"The action taken by our office reflects the interest that our Governor, Ricardo Rosselló, has in having claims defended in a timely manner, for consumers and for important sectors of our economy, such as manufacturing and commerce, which were affected by hurricane María," said Rivera-Ríos.

This article is translated and used with permission from El Nuevo Día

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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