Insurers accused of Child Victims Act violations

New York lawmakers are urging the state Department of Financial Services (DFS) to investigate allegations that insurers are neglecting claims tied to the Child Victims Act (CVA).

Assemblymember Linda B. Rosenthal and Senator Brad Hoylman-Sigal have formally requested DFS to address concerns that survivors of child sexual abuse are being denied compensation by insurance companies.

In a letter to DFS Superintendent Adrienne Harris, the two cited the ongoing complaints from abuse survivors who allege that insurers are failing to process their claims.

Separately, it was pointed out that despite the grievances being raised with DFS for months, the agency has yet to take meaningful action.

Rosenthal and Hoylman-Sigal wrote: “As authors of the Child Victims Act law of 2019, we are writing regarding disturbing reports we have received from survivors who say their claims are not being properly processed by insurers regulated by the NYS Department of Financial Services.

“It has come to our attention that some insurance companies may not be complying with the guidance issued by DFS in Insurance Circular Letter No. 11 of September 12, 2019, and therefore the law as set forth in the CVA.

“We ask that your office investigate this issue and let us know how DFS plans to ensure that insurers comply with the law and do so in an expeditious manner.”

The CVA was designed to give survivors of childhood sexual abuse a chance to file claims for compensation, even for decades-old incidents. However, five years after its passage, thousands of survivors are still waiting for insurers to honor their claims.

Some insurers, including Chubb, have been accused of disregarding DFS’s guidance to comply with the CVA. Interstate has also been cited as among those getting in the way of compensation.

Stephen Jimenez, a survivor and advocate, asserted: “At this point, silence is complicity. Superintendent Harris’ failure to enforce her own department’s guidance is allowing insurers like Chubb to profit from the pain and suffering of survivors who were sexually abused as children.

“The insurance industry is fighting to run out the clock and protect their profits, because every survivor that dies waiting for justice is one less claim for them to pay.”

Jimenez also voiced appreciation for the ongoing support from lawmakers Rosenthal and Hoylman-Sigal who continue to press DFS for action.

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