Bill > SCR21

This joint resolution urges Congress to investigate potential fraudulent practices by insurance companies in handling flood insurance claims related to Superstorm Sandy. Specifically, the resolution highlights concerns about insurance companies using a "peer review" process to revise engineering reports in ways that improperly deny legitimate flood damage claims. The resolution references a specific legal case (Raimey v. Wright National Flood Insurance Co.) where a U.S. Magistrate Judge found that an engineering firm secretly rewrote an initial report to change the cause of property damage, effectively preventing homeowners from receiving fair compensation. The National Flood Insurance Program (NFIP), a federal program managed by the Federal Emergency Management Agency (FEMA), provides flood insurance through private insurance companies, and the resolution seeks to determine how widespread this potentially deceptive practice of manipulating engineering reports might be in New Jersey and other states affected by Superstorm Sandy. The resolution calls for immediate congressional investigations to uncover the full extent of these potentially improper claim denial practices and protect homeowners' interests.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/SCR21