Disaster Response Plan · Appendix 16: Disaster Response Plan Checklists.....307 ii. Introduction This handbook is intended to serve as a guide for insurance regulators to develop

State Disaster Response Plan

April 2003

National Association Of Insurance Commissioners

© Copyright 2002, 2003 by National Association of Insurance Commissioners All rights reserved.

Revised Edition

ISBN 0-89382-931-5

National Association of Insurance Commissioners Insurance Products & Services Division

816-783-8300 Fax 816-460-7593

www.naic.org/insprod [email protected]

Printed in the United States of America

No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any storage or retrieval system, without written permission from the NAIC.

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Disaster Response Plan Introduction..................................................................................................................... 1 Overview of Committee, Subcommittees and Task Groups ............................................... 3 Preparation Tasks ............................................................................................................ 5 Section I. Before the Disaster—Introduction of Concepts and Groups............................. 5

1. Executive/Policymaking Committee ................................................................................. 5 1.1 Insurance Department Planning Subcommittee................................................................. 5

1.1a Insurance Community Liaisons ...................................................................................... 6 1.1b Mediation Program ......................................................................................................... 7 1.1c Exceptions to Common Settlement Practices ................................................................. 8 1.1d Market Assistance Plans ................................................................................................. 9 1.1e Insurance Disaster Assessment Team........................................................................... 11 1.1f Emergency Licensing of Adjusters ............................................................................... 11 1.1g Early Access for Adjusters............................................................................................ 12

1.2 Combined Resources Subcommittee ............................................................................... 13 1.2a Logistics Task Group.................................................................................................... 14 1.2b Coordination/Communications Task Group ................................................................. 15 1.2c Command Post Task Group .......................................................................................... 16 1.2d Consumer Information Hotline Task Group ................................................................. 18 1.2e Media Relations Task Group ........................................................................................ 20 1.2f Volunteer Recruiting and Training Task Group ........................................................... 20 1.2g Market Monitoring Task Group.................................................................................... 22

Activation Tasks............................................................................................................. 25 Section II. Immediately Before, During and Immediately After the Disaster .................... 25

2. Executive/Policymaking Committee ............................................................................... 25 2.1 Insurance Department Planning Subcommittee............................................................... 25

2.1a Insurance Community Liaisons .................................................................................... 25 2.1b Mediation Program ....................................................................................................... 26 2.1c Exceptions to Common Settlement Practices ............................................................... 26 2.1d Market Assistance Plans ............................................................................................... 26 2.1e Insurance Disaster Assessment Team........................................................................... 26 2.1f Emergency Licensing of Adjusters ............................................................................... 26 2.1g Early Access for Adjusters............................................................................................ 27


Section III. Post Disaster Tasks...................................................................................... 32 3. Executive/Policymaking Committee ............................................................................... 32

3.1 Insurance Department Planning Subcommittee............................................................... 32 3.1a Insurance Community Liaisons .................................................................................... 32 3.1b Mediation Program ....................................................................................................... 32 3.1c Exceptions to Common Settlement Practices ............................................................... 33 3.1d Market Assistance Plans ............................................................................................... 33

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3.1e Insurance Disaster Assessment Team........................................................................... 33 3.1f Emergency Licensing of Adjusters ............................................................................... 33 3.1g Early Access for Adjusters............................................................................................ 34


Appendix 1: Referral Sources for Consumers .................................................................. 39 Appendix 2: Market Assistance Plans ............................................................................. 43 Appendix 3: Sample New Releases, Bulletins, Consumer Brochures, and Claim Forms ... 65 Appendix 4A: South Carolina’s Disaster Response Volunteer Statement.......................... 77 Appendix 4B: Florida’s Disaster Response Volunteer Statement...................................... 81 Appendix 5: Florida’s Emergency Adjuster Licensing Regulation ..................................... 83 Appendix 6A: Florida Department of Insurance Sample Disaster Response Plan.............. 93 Appendix 6B: Missouri Department of Insurance Sample Disaster Response Plan..........159 Appendix 7: Data Reporting ..........................................................................................251 Appendix 8: Model National Emergency Management Assistance Compact (EMAC)

Legislation ..................................................................................................265 Appendix 9: Sample Bulletin .........................................................................................271 Appendix 10: Midwest Zone’s Ending Arguments Gently, Legally and Economically

(E.A.G.L.E.) .................................................................................................275 Appendix 11: Identification of Catastrophe Perils ...........................................................281 Appendix 12: Insurance Partnerships for Improved Disaster Recovery ...........................285 Appendix 14: Guidelines for IDAT Reports .....................................................................303 Appendix 15: 2003 Members by Zone ............................................................................305 Appendix 16: Disaster Response Plan Checklists ...........................................................307

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Introduction This handbook is intended to serve as a guide for insurance regulators to develop and adopt comprehensive disaster response plans. The handbook recommends that subcommittees and task groups execute the plan and coordinate efforts to effectively respond to disasters affecting the insurance marketplace in their jurisdiction. The handbook recommends that any disaster plan establish and maintain partnerships between public and private organizations to ensure the most efficient resource allocation and communication possible. In so doing, the citizens of any jurisdiction can be assured of the most coordinated response by all accountable parties. Each insurance department is expected and encouraged to tailor the plan to its own staffing and technical resources as well as to the types of disasters most likely to occur in its particular region of the United States or its possessions. In some instances, it may make more sense to combine the efforts of more than one group if staffing is limited. Although this handbook references alternate designated facilities to be used in case the insurance department headquarters are damaged or destroyed in a disaster, this handbook does not include internal disaster recovery or business continuation planning. Such planning should be independently undertaken by insurance regulators. This handbook recommends three distinct plan “stages”: I) Preparation; II) Activation; and III) Post Disaster. While the distinction between these stages may be obvious to some, it is important that any plan define the trigger(s) for when each stage ends and another one begins. Each task group should have specific responsibilities for each stage and each major activity should list the person accountable for completing the activity. Recommended responsibilities and activities are enumerated generically in this document. The activities are, by no means, exhaustive but, rather, are a guide to be amended where appropriate in a particular jurisdiction. Last, the appendices contain several reference documents. It is suggested that you review these when preparing your disaster response plan, as you may find an approach or plan that is particularly suitable in your jurisdiction.

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Overview of Committee, Subcommittees and Task Groups

Executive/Policymaking Committee The primary purpose of this group is to provide overall executive direction to the Insurance Department Planning Subcommittee and the Combined Resources Subcommittee at any stage necessary. This group should be comprised of senior-level managers in the insurance department with the authority to make policy decisions about every aspect of the plan’s execution and resources. This group should ensure that the insurance department implements and maintains a comprehensive Disaster Response Plan and that it is evaluated periodically. Insurance Department Planning Subcommittee The primary purpose of this group is to establish and maintain response needs or resources, including insurance community liaison contacts, a mediation program, exceptions to common settlement practices, market assistance plans, etc. This group should be comprised of insurance department staff members and would regularly report to the Executive/Policymaking Committee. Combined Resources Subcommittee The primary purpose of this group is to provide oversight for the operational components of the insurance department’s Disaster Response Plan. This group should also be responsible for coordinating activities with state and/or federal emergency management agencies where applicable. This group would regularly report to the Executive/Policymaking Committee. Logistics Task Group The primary purpose of this group is to ensure that the technical and physical resources necessary to fulfill the requirements of the insurance department’s Disaster Response Plan are available and operational when needed. This group’s responsibilities would typically be focused on such resources as laptop or desktop computers, related network or other connectivity resources, printers, fax machines, cell phones, pagers, vehicles and temporary office space/furniture as needed. This group would regularly report to the Combined Resources Subcommittee. Coordination/Communications Task Group The primary purpose of this group is to provide coordination/communication to zones, insurance departments and other state and federal agencies. This group would regularly report to the Combined Resources Subcommittee. Command Post Task Group The primary purpose of this group is to coordinate the day-to-day operations of the “command post” environment to include interaction among private and public entities, insurance department personnel and insurance industry representatives during and following a disaster. This group would regularly report to the Combined Resources Subcommittee.

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Consumer Information Hotline Task Group The primary purpose of this group is to efficiently and effectively respond to consumer inquiries when a disaster occurs. This group is also responsible for monitoring and reporting complaints signaling trends in claims handling practices (see Appendix 9), which might suggest an insurer’s inability to effectively respond as necessary. This group would regularly report to the Combined Resources Subcommittee. Media Relations Task Group The primary purpose of this group is to receive and disseminate current relevant information to consumers and media prior to, during and following a disaster. This group would regularly report to the Combined Resources Subcommittee. Volunteer Recruiting and Training Task Group The primary purpose of this group is to ensure that the department has a sufficient number of well-trained and prepared volunteers to respond to disaster-related consumer needs, including field duties, consumer hotline assistance, etc. This group would regularly report to the Combined Resources Subcommittee. Market Monitoring Task Group The primary purpose of this group is to monitor and evaluate information provided by staff in the field (investigative/fraud related) as well as from the Consumer Information Hotline Task Group to identify and address emerging issues affecting the industry’s response. This group would regularly report to the Combined Resources Subcommittee.

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Preparation Tasks Section I. Before the Disaster—Introduction of Concepts and Groups 1. Executive/Policymaking Committee The primary purpose of this group is to provide overall executive direction to the Insurance Department Planning Subcommittee and Combined Resources Subcommittee at any stage necessary. This group should be comprised of senior-level managers in the insurance department with the authority to make policy decisions about every aspect of the plan’s execution and resources. This group should ensure that the insurance department implements and maintains a comprehensive Disaster Response Plan and that it is evaluated periodically. Recommended composition: • Commissioner/Director or senior deputy • Deputy of consumer services division • Senior consumer services staff person • Senior administrative services staff person • Senior market conduct staff person

Task Description By Date Responsible

Person(s) 1) Establish and appoint the Insurance Department Planning

Subcommittee. By X date

2) Establish and appoint the Combined Resources Subcommittee. Ongoing 3) Oversee activities of the Insurance Department Planning

Subcommittee. Ongoing

4) Oversee activities of the Combined Resources Subcommittee. Ongoing 5) Oversee the implementation and maintenance of the Disaster

Response Plan. Ongoing

1.1 Insurance Department Planning Subcommittee The primary purpose of this group is to establish and maintain response needs or resources, including: insurance community liaison contacts, a mediation program, exceptions to common settlement practices, market assistance plans, etc. This group should be comprised of insurance department staff members and would regularly report to the Executive/Policymaking Committee. Recommended composition: • Consumer services staff person • Administrative services staff person • Market conduct staff person • Other staff as needed This group may need to establish objectives for monitoring issues such as claims handling standards and assessment, general industry response assessment and market assistance needs that may arise.

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Note: All Section 1.1 tasks are the responsibility of the Insurance Department Planning Subcommittee.


Person(s) 1) Establish and maintain an insurance community liaison contact

list.

2) Establish and appoint an insurance disaster assessment team. 3) Oversee the emergency licensing of adjusters. 4) Establish and maintain exceptions to common settlement

practices.

5) Establish and maintain a mediation program. 6) Establish and maintain a market assistance plan (See Appendix 2). 7) Work with state and/or local office of emergency management

officials and insurance industry representatives, before the occurrence of a disaster, to identify individuals authorized for early access to impacted areas for claims adjusting purposes (See Section 1.1g).

1.1a Insurance Community Liaisons Liaisons are appointed by insurers doing business in the state. Each liaison should have an available back up, and both would likely be a member of the insurer’s disaster response team. Liaisons should be able to provide coverage data and loss statistics, by county or region, according to any standardized format developed by the insurance department. Liaisons must be knowledgeable of company internal information systems and sources, and authorized to access such systems so that applicable and timely information can be provided to the insurance department or emergency response agencies upon request.


Person(s) 1) Establish procedures to ensure documentation and statistical

reporting procedures pursuant to Section 24A of the Statistical Reporting Handbook (NAIC) (Appendix 7).

2) Develop a list of insurance community liaisons. Should be members of insurer’s disaster response team who are familiar with company processes, systems and protocols and have access to key information. Should include primary and secondary contact person information.

3) Compile contact information and claims processing information. By X date annually

4) Compile exposure data. By X date annually

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Person(s) 5) Consider establishing a password-protected site on insurance

department Web site for authorized insurance department and insurance community liaison personnel to report claims-processing information.

• Insurance community liaisons will report other disaster information to be posted to insurance department’s Web site including: Lists of company claim offices and phone numbers Adjuster information Company toll-free numbers, etc.

6) Determine where insurance community liaison activity will occur (e.g., may have a permanent seat in state’s emergency operations center or insurance department’s command post).

7) Establish a trigger for activating the insurance community liaisons (e.g., when state emergency operations center is at Level 3 or higher, or when Commissioner/Director determines that activation will benefit the insurance department, industry and consumers).

8) Determine what information, if any, will be required to be reported upon activation of the insurance community liaisons.

9) Develop insurance community liaison disaster reporting form (See Sample in Appendix 13), which should, as much as possible, be uniform with other states’ forms. Such information should be reported by the insurance community liaisons and may include such detailed information as:

• Exposures by zip code • Incurred losses to date • Number of claims received • Number of insureds contacted • Number of claims settled • Available reinsurance, etc.

10) Contact all insurance community liaisons to ensure they have copies of the most current insurance community liaison disaster reporting form.

11) Ensure updates to all data. 1.1b Mediation Program Sometimes claims that originate during a disaster go unresolved if the insured and adjuster are unable to agree on a question of fact. To avoid costly and unnecessary litigation, a mediation program designed to help the insured and insurer reach a satisfactory conclusion may be considered. Mediators for the program should be qualified individuals who have been trained in mediation techniques by certified mediators according to state law. Those serving as mediators do not issue rulings, but act as facilitators helping the insureds and insurers reach settlements that are beneficial to both. A voluntary approach to dispute resolution is generally beneficial to insureds and insurers alike. The insured and insurer must agree to mediation before the mediation process begins. Those participating in the mediation process should have full settlement authority.

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Person(s) 1) Coordinate with insurance industry to determine if a mediation

program is desired for post-disaster claim disputes.

2) Determine if additional statutory authority is needed in order to implement such a program. (Seek additional authority, if desired.)

3) Establish the mediation program and set protocol for when the program is activated and rules by which the program will operate (e.g., Oklahoma’s Ending Arguments Gently, Legally and Economically (E.A.G.L.E.) program—Appendix 10).

• Ensure that protocols include requirements for: Proper training of mediators Eligibility of claims for mediation (size/type, etc.) Where mediation takes place Who pays costs, etc.

4) Establish: • Monitoring mechanism for program; • Evaluation standards for success of program; and • Protocols for when mediation program should be deactivated

(e.g., some states may wish to keep mediation program in force continuously; others may wish to activate such plan after disasters).

1.1c Exceptions to Common Settlement Practices Following a major disaster, in order to accommodate the magnitude of claims in an efficient and compassionate manner, there will likely be a need for exceptions to common settlement practices, including (but not limited to): Auto insurer “declaration of total loss” for vehicles that are located within

the disaster area and are not accessible to adjuster inspection. Insurers’ allowance and/or acceptance of affidavits of death as viable

proof of loss on life insurance contracts (See Appendix 3 for an example). Some disasters may occur in which it becomes apparent that individuals may not be found or, if found, identification will be impossible.

Insurer consideration of the need to extend time restraints, which normally apply to the filing of claims and the settlement of claims.

Placing insurance department antifraud units on high alert in anticipation of unscrupulous activities that may follow a major disaster. Arrangements also should be made to allow antifraud units access to the disaster site (also see Section 1.2g Market Monitoring Task Group).

Insurers providing additional grace periods for policyholders whose dwellings or businesses have been damaged or destroyed and who temporarily may not have the ability to pay premiums as a result of a major disaster.

Regulators may wish to consider exception or adjustment to any established time frames in which adjusters must contact a claimant. Regulators may wish to consider modification to what constitutes “contact,” i.e., use of phone, mail or fax. In addition, if due to certain deductible levels or other appropriate factors, there are claims that would result in no payment, regulators may wish to consider different response time requirements for adjusters in this instance.

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Person(s) 1) Determine which exceptions to common settlement practices may

need to be established to accommodate a magnitude of claims in an efficient and compassionate manner, through communications with the insurance industry.

2) Develop triggers, in consultation with industry, as to when such practices will be implemented or amended. Document changes and ensure that they are fully communicated to the industry and consumers.

1.1d Market Assistance Plans A market assistance plan is a clearinghouse or system for matching insurance buyers with insurance sellers. A market assistance plan collects and maintains an extensive database of information on authorized property and casualty insurers and on licensed agents and the types of policies they are authorized to write. Although market assistance plans are not residual markets or insurers, they have often been required prior to establishing a residual market program such as a joint underwriting association (JUA). It is important for states to ensure that the enabling statutes and/or administrative rules for establishing a market assistance plan are in place during the Preparation phase of the Disaster Response Plan. It may take six months to establish a market assistance plan, and longer if the state must first obtain enabling legislation or adopt administrative rules to implement a plan. Generally, admitted insurers and, where allowed, eligible surplus lines insurance producers prepare a market assistance plan “Plan of Operations.” The Plan of Operations typically establishes the mechanism for assigning applications. The Plan of Operations should provide for a high degree of regulatory oversight to avoid any appearance of unfair treatment in the assignment process. Insurers submit the plan to the Commissioner/Director for review and approval, and if approved, the department adopts the plan, usually by rule. Market assistance plans can work in different ways: Types of Insurance Provided—Market assistance plans are generally

established for property and casualty lines of insurance, and may include personal or commercial property, commercial liability or other lines.

Trigger for Activation—Market assistance plans may be established after public hearing, or after the Commissioner/Director determines that a specific line of insurance is unavailable or unaffordable.

Participation—Market assistance plans may be voluntary or compulsory. In most states, participation is compulsory. If voluntary, participating insurers should agree to assume their fair shares of insurance applications submitted to the market assistance plan.

Applications—Market assistance plans may require that licensed producers submit applications to the market assistance plan for

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marketing. However, some market assistance plans have been structured to allow consumers to submit applications directly.

Administration—Market assistance plans are usually administered by an executive committee consisting of some or all of the following: Interested insurers; Licensed insurance producers or an agent’s association; Public members; Surplus lines insurance producers; and Commissioner/Director or insurance department personnel as an ex

officio member.

Financing—Market assistance plans may be financed by admitted insurers, be self-supporting through application fees, or receive some financial assistance from the insurance department.

Duration—Market assistance plans may be established for continuous existence or for shorter time periods after which the market assistance plan is de-activated.


Person(s) 1) Research and discuss with insurance industry representatives the

need for market assistance plans if post-disaster marketplace disruptions dictate that one is necessary. (See Appendix 2 for background information on market assistance plans.)

2) Determine plans for establishing a market assistance plan, such as:

• Whether it be a general property and casualty market assistance plan or specific to one line of coverage, such as workers’ compensation, etc;

• Who should participate; • If/how the market assistance plan should be extended to

include non-admitted markets; • Who should administer the market assistance plan; • How the market assistance plan will be funded; • Whether coverage required will be identical or whether similar

products will be acceptable; • Resources needed to operate the market assistance plan, etc.

3) Determine trigger(s) for activating the market assistance plan (e.g., coverage is becoming unaffordable and/or unavailable; rate/form filing increases or coverage exclusions/restrictions; consumer complaints, etc.).

4) Pursue statutory and/or rulemaking authority to allow the insurance department to establish a market assistance plan if such enactments are necessary.

5) Determine protocols for monitoring market assistance plan activity, evaluating its success, and protocols for isassembling/deactivating the market assistance plan when no longer needed.

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1.1e Insurance Disaster Assessment Team An insurance disaster assessment team should be developed to tour affected area(s) as soon as possible to evaluate the damage and provide initial damage estimates and estimates of the number of adjusters that will be needed. This team could be comprised of senior insurance company representatives, adjusters and/or representatives of the insurance department. The Insurance Department Planning Subcommittee would likely establish this team.


Person(s) 1) Work with insurance industry and disaster management

community to develop uniform insurance disaster assessment team information for reporting (see Guidelines in Appendix 14).

2) Identify important information to assist the state in seeking a state or federal disaster declaration, and find information sources. (The information may be available through the uniform insurance disaster assessment team for reporting guidelines and the insurance community liaison disaster reporting form.)

3) Identify a method to quickly resolve disputes or concerns if they arise regarding a company’s early access to the disaster area(s).

4) Review insurance disaster assessment team membership, confirm availability of team members and update contact information.

Annually

1.1f Emergency Licensing of Adjusters States may wish to consider adopting rules or regulations that outline the qualifications and procedures for emergency licensing of adjusters. Depending on a state’s laws regarding “permanent” adjusters, it may wish to consider distinguishing among insurer staff adjusters, independent adjusters and public adjusters in such rules or regulations. An insurance department’s Disaster Response Plan should address the activation of such licensing procedures in a prompt and efficient manner. Use of a state’s Web site is ideal for advance publication of such rules so that affected insurers and adjusting firms can prepare in advance. (See Appendix 5 for an example of a state’s “Emergency Adjuster Licensing Regulation.”)


Person(s) 1) Determine if statutes/regulations permit emergency licensing

procedures for adjusters, and if so, for which type (e.g., company adjusters, independent adjusters and/or public adjusters).

2) Initiate legislative/regulatory procedures to establish authority if statutes/regulations do not provide for such.

3) Establish guidelines for expedited licensing. 4) Distribute guidelines to interested parties on the insurance

department Web site or informational bulletin site.

5) Establish protocol for sharing the list of emergency adjusters with appropriate internal insurance department staff, Combined Resources Subcommittee, etc.

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1.1g Early Access for Adjusters Regulators may wish to coordinate with state and/or local emergency management officials and industry representatives to establish a program designed to identify individuals authorized for early access to the most severely impacted areas for claims adjusting purposes. Such a program might include issuance of State Emergency Response Team (SERT) badges to insurers, managing general agents, agent associations and other approved organizations for this purpose. Issuance could be coordinated through the insurance department or through an industry trade organization. With early access, the adjuster can assess the amount of damage to individual structures and issue emergency funds (ALE checks) covering temporary living expenses to policyholders of the impacted area. SERT badges would be issued for a specified period (e.g., one year), where allowable under state law and/or law enforcement policy, and would allow early entry into disaster zones.

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1.2 Combined Resources Subcommittee The primary purpose of the Combined Resources Subcommittee is to provide oversight for the operational components of the insurance department’s Disaster Response Plan. This group would also be responsible for coordinating activities with state and/or federal emergency management agencies where applicable. This group would regularly report to the Executive/Policymaking Committee. All task groups would report to this committee. This group should also monitor, coordinate and advise other insurance department staff or state/national leaders regarding disaster response needs or resources in the event of a disaster affecting more than one state or jurisdiction. Recommended composition: • Commissioner/Director or senior deputy • Senior consumer services staff person • Senior administrative services staff person • Disaster leaders from state’s top writing insurers (if desired) • Representatives from local, state and/or federal government and emergency

management agencies (if desired)


Person(s) 1) Create, test and maintain long-term formal, written “public-private

disaster partnerships” with appropriate organizations designed to coordinate response to disasters.

2) Create a list of key decision-makers for disaster management. 3) Update and maintain the list of key disaster management decision-

makers and share that list widely within the disaster management community.

By X date annually

4) Call an initial meeting of members to: • Discuss the insurance department’s Disaster Response Plan; • Explain duties of the Combined Resources Subcommittee and

task groups; • Receive input from members; and • Gather ideas from task group members, references,

educational/informational materials, contact persons, disaster-related issues that may need to be added to this Disaster Response Plan, etc.

5) Coordinate with local, state and federal emergency management agencies and the insurance industry to identify critical areas of mutual need before, during and after a disaster.

6) Establish and appoint a Logistics Task Group and oversee its activities.

By X date & ongoing

7) Establish and appoint a Coordination/Communications Task Group and oversee its activities.

8) Establish and appoint a Command Post Task Group and oversee its activities.

9) Establish and appoint a Consumer Information Hotline Task Group and oversee its activities.

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Person(s) 10) Establish and appoint a Media Relations Task Group and oversee

its activities.

11) Establish and appoint a Volunteer Recruiting and Training Task Group and oversee its activities.

12) Establish and appoint a Market Monitoring Task Group and oversee its activities.

13) Meet periodically to: • Discuss the progress of the task groups • Solve issues that arise • Add/delete items to the state’s specific Disaster Response Plan,

etc.

Biannually or as often as the Commissioner/Director deems necessary prior to the state’s disaster season (if applicable).

1.2a Logistics Task Group The primary purposes of the Logistics Task Group are as follows: Consult with the Combined Resources Subcommittee and other task groups regarding the insurance department’s logistical and technical capabilities and requirements to enable the efficient execution of the insurance department’s Disaster Response Plan. Coordinate with the Command Post Task Group regarding logistical and technical capabilities for command post and/or field or temporary offices. Coordinate with the Consumer Information Hotline Task Group regarding logistical and technical capabilities for hotline and other consumer communication needs. Recommended composition: • Senior consumer services staff person • Senior information technology staff person(s) • Senior administrative services staff person(s) • Other insurance department personnel as needed


Person(s) 1) Identify resource needs of the Combined Resources Subcommittee

and other task groups regarding the insurance department’s logistical and technical capabilities and requirements to enable the insurance department to respond better and faster to disasters and include these in the implementation plan.

2) Coordinate technical requirements for an alternate designated facility to ensure its immediate activation in case the insurance department headquarters is damaged/destroyed in a disaster and include these in the implementation plan.

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Person(s) 3) Determine whether it is feasible to use the insurance department’s

existing toll-free number for the consumer information hotline and whether/how to coordinate all the insurance department toll-free lines if additional lines are necessary.

4) Determine how to incorporate TDD lines if desired by the Consumer Information Hotline Task Group.

5) Determine how to quickly and efficiently link the insurance department satellite and/or temporary field office sites with the insurance department headquarters.

6) Establish method of requesting and securing resources from other states and organizations if needed.

7) Identify available physical and human resources, which may assist in disaster response efforts.

1.2b Coordination/Communications Task Group In time of need, insurance regulators in other jurisdictions may serve as a potential resource to assist in meeting the increased demands on state resources caused by a disaster. In the past, insurance regulators from across the country have volunteered to assist by traveling to the disaster site or to government offices to staff hotlines with knowledgeable personnel. Additionally, federal agencies may call upon a state department for technical information relating to insurance. The Coordination/Communications Task Group may wish to identify resources in advance that might be available for this purpose. This group may want to establish objectives relating to the coordination of available resources in nearby states not affected by the disaster. This could include working with: • NAIC zone disaster response coordinators (see Appendix 15 for 2003 NAIC

Members by Zone). • Emergency Management Assistance Compact (EMAC) states and non-

EMAC states. (The purpose of EMAC is to provide for mutual assistance between the states entering into this compact in managing any emergency or disaster that is duly declared by the governor of the affected state(s), whether arising from natural disaster, technological hazard, man-made disaster, civil emergency aspects of resources shortages, community disorders, insurgency, or enemy attack—see Appendix 8, Model Legislation.)

Recommended composition: • State NAIC liaison • Media relations staff person • Administrative staff person • Senior legal department staff person

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Person(s) 1) Hold discussions with local, state, and/or federal emergency

management agencies to identify critical individuals who can work with the insurance department to prepare for dealing with a disaster, including key contacts in disaster assistance agencies.

By X date annually

2) Obtain a list of NAIC zone disaster response coordinators and alternate zone disaster response coordinators, and ensure that each state within that zone maintains a list of volunteers that are willing to participate if a disaster occurs.

3) Determine which states have signed an Emergency Management Assistance Compact (EMAC) (Appendix 8).

• Research and determine protocols for sharing of insurance department personnel via EMAC for those EMAC states.

• Establish other procedures and guidelines for sharing of insurance department personnel with non-EMAC states.

1.2c Command Post Task Group The primary purpose of this group is to coordinate the day-to-day operations of the command post environment to include interaction among private and public entities, insurance department personnel and insurance industry representatives during and following a disaster. Recommended composition: • Senior deputy staff person • Senior consumer services staff person(s) • Senior claims/market conduct staff person(s) • Insurance department communications staff person • Insurance industry trade association(s) personnel (if desired) The Command Post Task Group should be established in an insurance department conference room, if allowed by a disaster, and be retrofitted with workstations for (at least) 15 people, including phones, electrical and data ports. The command post may be used to temporarily house senior members of the insurance department and its staff, representatives from impacted insurance companies and/or insurance community liaisons that work together to manage communication and solve problems in the days immediately following a disaster event. The Command Post Task Group should operate as a communication conduit between the general public and insurance industry. The Command Post Task Group should oversee insurance department satellite office(s) or temporary field office disaster-related activities. The Command Post Task Group should ensure that each insurance department location (insurance department headquarters and any satellite and/or temporary field office(s)) has at least one individual specifically trained and prepared to answer questions at town meetings and other informational gatherings, brief the press and act to supplement information provided through the media and other sources on the quick and effective preparation of insurance claims information.

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The Command Post Task Group should coordinate field office operations established by the federal and/or state emergency management agencies. In some instances, operating the field offices in cooperation with the Red Cross or other disaster assistance agencies will be most effective. Local field office(s) should address problems, solve them where possible, oversee the areas for which the field office has responsibility, deal with local problems and handle them from a closer vantage point. Where serious disputes or problems arise, the field office will forward these to the command post; otherwise, the field office will manage their own operation and only submit daily status reports of activities. The field office should be charged with channeling information within the zone for which the office has responsibility. Press contacts and general insurance information will come through this point. Insurance department brochures or disaster response information will be made widely available through field office(s) and the Internet. The field office should be staffed with the appropriate number and type of personnel from the insurance department staff and persons from other sources as appropriate. Note: Insurance industry personnel should be assigned to field offices on a voluntary basis so as not to impact company operations during a catastrophe.


Person(s) 1) Determine possible triggers for deciding if an insurance department

command post will be activated (the nature/extent of each disaster may change the previously established triggers).

2) Determine where the command post will be located if activated. 3) Determine what equipment the command post personnel will need

(e.g., phones, workstations, faxes, computer hook-ups, etc.) and communicate this information to the Logistics Task Group.

4) Determine and arrange for an alternate site in case the insurance department headquarters are damaged/destroyed. (The command post may be located in another state or federal agency permanent or temporary office if more appropriate.)

5) Determine if/when the insurance department would need to activate satellite and/or temporary field office(s) and work with the Logistics Task Group to determine logistical/technical requirements.

6) Obtain a list of insurance community liaisons from the Insurance Department Planning Subcommittee to contact for activation (upon trigger being met for activating the insurance community liaisons).

7) Make available for distribution/publication written material explaining how to prepare claims. Prepare for it to be made available through the Internet and the command post and field office(s).

8) Establish procedures/protocol for deactivation of command posts.

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1.2d Consumer Information Hotline Task Group The primary purpose of this group is to efficiently and effectively respond to consumer inquiries when a disaster occurs. This group is also responsible for monitoring and reporting complaints signaling trends in claims handling practices, which might suggest an insurer’s inability to effectively respond as necessary. Recommended composition:

Senior insurance department consumer services staff person Representative of the Volunteer Recruiting and Training Task Group Other insurance department personnel as needed

The Consumer Information Hotline Task Group should plan for and coordinate consumer hotline activities to ensure effective response to consumer inquiries following a disaster. The Consumer Information Hotline Task Group should provide insurer contact information, as well as general information about insurance and how to file a claim. The Consumer Information Hotline Task Group should be prepared to provide guidance to consumers regarding filing a complaint against an agent, adjuster and/or insurer. (It is recommended that consumers be encouraged to work with their agent, adjuster and/or company first to resolve any issue.)


Person(s) 1) Determine desired hotline physical location (recommend location in

insurance department headquarters).

2) Establish protocol for determining when TDD lines are needed. 3) Link field offices and enable the hotline to be able to channel calls

to/from field offices. (Cellular phones or Web links should be used with field offices until those offices are made operational with wired phone links.) Seek assistance from the Logistics Task Group.

4) Determine alternate designated facility capable of immediate activation in case the insurance department central facility is damaged by the disaster.

5) Determine hardware necessary for the hotline (e.g., have phone lines transferred to temporary office space, if necessary).

6) Determine when to activate the hotline (e.g., when disaster is declared, when current toll-free lines are overloaded, etc.) and when to deactivate.

7) Determine whether or when to add additional lines, and, if so, how many (e.g., based on the number of calls received, length of queuing time, etc.).

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Person(s) 8) Establish protocols for how the hotline will function, including

shifts worked, hours of operation and structure (e.g. appoint a team leader for each shift). These decisions should be determined locally and depend on current disaster need, but protocols should be established to help in aiding decision-making when activation occurs.

Note: The prior NAIC Disaster Response Plan recommended 24-hour

hotline activation with volunteers serving 4-6 hour shifts. Florida’s experience after Hurricane Andrew was that 8 a.m.—7 p.m. was sufficient (no value added for longer hours). Weekends may be optional, depending on need.

9) Determine whether to accept industry or community volunteers or multilingual hotline staff, if long-term duration seems necessary.

10) Create list of individuals who will be designated to staff the hotline, as well as coordinate with the Volunteer Recruitment and Training Task Group for additional volunteers if necessary.

11) Establish notification method for hotline staff such as: • Insurance department Intranet or Internet notice; • Automated voice mail dial-in notice; or • Phone tree.

12) Coordinate with the Volunteer Recruiting and Training Task Group regarding a general information kit on:

• Claims handling process; • FAQs about auto, homeowners, life insurance; • Commonly used policy forms (e.g., top five or 10 insurers and

ISO’s forms); and • Coverage information related to state-specific perils (e.g.,

hurricane, earthquake, etc.—see Appendix 11 for catastrophe perils).

13) Contact the Insurance Department Planning Subcommittee regarding the insurance community liaisons to compile and maintain a current list of:

• Top five or 10 property and casualty insurers in the state; • Their disaster coordinator/representative; and • Their contact numbers, web site addresses.

14) Compile and maintain a list of phone numbers/contacts/Web sites for non-insurance referrals. (See Appendix 1 for examples.)

15) Develop procedures to: • Publicize the hotline once activated; • Have local or regional emergency management agency phone

numbers to contact and advise of toll-free insurance assistance number and Web site address (update this list annually); and

• Publicize in other ways (press releases, public service announcements, etc.). Work with Media Relations Task Group.

16) Determine whether the insurance department will accept other means of communications from consumers (fax, e-mail, department Web site) and establish logistics accordingly. Coordinate with the Logistics Task Group.

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1.2e Media Relations Task Group The primary purpose of this group is to receive current relevant information and disseminate such information to consumers and media prior to, during and following a disaster. This group might also engage in public speaking activities by providing insurance department representatives to various locations as needed. Recommended composition: Insurance department media liaison, public information officer Senior insurance department consumer services staff person NAIC media liaison (if desired) Insurance industry media liaison (if desired)


Person(s) 1) Develop and maintain a list of all press/media outlets (both print and

electronic, including newspapers and broadcast media). Update appropriate contact information (names, addresses, phone numbers, e-mail addresses, Web sites).

2) Work with the Command Post Task Group and field office location personnel to ensure that each insurance department location has an individual specifically trained and prepared to answer questions at town meetings and other informational gatherings. These individuals would brief the press and then act to supplement information provided through the media and other sources on how to quickly and effectively prepare insurance claims information.

3) Produce and distribute brochures on disaster preparedness (in conjunction with such materials already produced by emergency management agencies, the insurance industry, etc.).

4) Establish procedures for the flow of information between the Combined Resources Subcommittee and all other task groups.

1.2f Volunteer Recruiting and Training Task Group The primary purpose of this group is to ensure that the department has a sufficient number of well-trained and prepared volunteers to respond to disaster-related consumer needs, including field duties, consumer hotline assistance, etc. Recommended composition: Senior training staff person Consumer services staff person Administrative services staff person, as needed for training Other insurance department staff with expertise needed for training

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Person(s) 1) Recruit, identify and confirm list of insurance department disaster

response volunteers (see Appendix 4), including: • Name • Title • Unit • Home/work phone numbers • Home/work address • Home/work e-mail address • Area of expertise, etc.

Annually or prior to any known “season, i.e., hurricane”

2) Update volunteer pool list and contact information. Annually 3) Interview volunteers:

• Availability status (i.e., who can be ready on a moment’s notice versus those who may need to make arrangements to be away)

• Multilingual abilities • Strengths and weaknesses • Disaster training and/or prior experience • Current insurance expertise • Volunteer interests for disaster duty (e.g., field duty and/or

consumer hotline duty)

4) Establish training requirements, including: • Who should be trained:

Command post staff Field staff Hotline staff, etc.

• What training should be received: Counseling disaster survivors Conflict resolution Listening skills Insurance related Fraud identification training Public speaking

• When training should occur: Ongoing Periodically repeated Crash review course within 72 hours of disaster

5) Develop customized internal insurance department disaster training.

6) Identify existing training opportunities: • Emergency management agencies:

Local State Federal

• Insurance industry

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Person(s) 7) Coordinate with the Consumer Information Hotline Task Group

regarding a general information kit on: • The claims handling process • Frequently-asked-questions about auto, homeowners, life

insurance • Commonly used policy forms (e.g., top 5 or 10 insurers and

ISO’s forms) • Coverage information related to state-specific perils (e.g.,

hurricane, earthquake, etc.) • Command post and/or field office contact information

Provide written materials to the Command Post Task Group for distribution/publication.

By X date annually, preferably prior to state’s “disaster season”

8) Recruit, identify and confirm the list of insurance department consumer hotline volunteers, including:

• Name • Title • Unit • Home/work phone numbers • Home/work address • Home/work email address • Area of expertise

Update regularly.

9) Determine whether insurance department would accept industry or community volunteers for hotline and, if so, set protocols for activating such volunteers (e.g., if disaster is long-term, if multilingual volunteers are needed, qualified person retired from insurance department, etc.).

1.2g Market Monitoring Task Group The primary purpose of the Market Monitoring Task Group is to monitor and evaluate information provided by the field staff (investigative/fraud related) and the Consumer Hotline Task Group, to identify and address emergency issues affecting the insurance industry’s response to a disaster. Recommended composition: Senior market conduct staff person(s) Senior solvency staff person(s) Senior consumer services staff person(s)

For the Disaster Response Plan to be effective, insurance regulators must effectively communicate and coordinate efforts with the insurance industry and insurance consumers to aggressively investigate and prevent fraudulent claims. The sheer volume of claims activity following a disaster creates a multitude of opportunities for dishonest people to attempt to profit from the situation. While most claims are legitimate, many are inflated or fraudulent. Determining the “fraud probability” of any claim is facilitated when the adjuster/investigator is familiar with various fraud indicators. These indicators should help isolate those claims that merit closer scrutiny.

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No one indicator by itself is necessarily suspicious. Even the presence of several indicators, while suggestive of fraud, does not mean that a fraudulent act has been committed. Indicators of fraud are not evidence that fraud has occurred. They merely suggest that a more in-depth investigation is appropriate. All suspicious claims should be referred to the state antifraud unit. These units typically work with the state bureau of investigation and with the attorney general’s office for prosecution. In the event that a disaster has occurred that affects multiple states, information regarding individuals who have been found to have participated in fraudulent activities should be reported to the other affected states.

Types of Fraud Following a Disaster: Inflated property claims;

i) Claims on property that never existed ii) Attempting to cause further damage to insured property to achieve

total loss Policyholders submitting fictitious bills for reimbursement; Price gauging for items that have suddenly become very high in demand; Vendors inflating claims for services rendered; Vendors seeking payment for work that has not been done/completed; False death claims; Unlicensed individuals claiming to be adjusters or public adjusters.

General Indicators of Property Insurance Fraud: Insured is overly pushy for a quick settlement; Insured is unusually knowledgeable regarding insurance terminology and

the claims settlement process; Insured handles all business in person, thus avoiding the use of the mail; Insured is willing to accept an inordinately small settlement rather than

document all claims losses; Insured is recently separated or divorced; Losses are incompatible with insured’s residence, occupation and/or

income; Losses include a large amount of cash.

Fraud Indicators Associated with the Claims Process: Insured over-documents losses with a receipt for every loss and/or

receipts for older items of property; Insured cannot provide receipts, cancelled checks or other proof of

ownership for items of significant value; Insured provides receipt(s) with incorrect or no sales tax figures; Insured provides receipt(s) with no store logo (blank receipt); Loss inventory indicates unusually high number of recent purchases; Insured cannot recall place and/or date of purchase for newer items of

significant value, Insured indicates distress over prospect of an examination under oath; Insured cannot provide bank or credit card records for recent purchases of

significant value; Insured provides receipts/invoices from same supplier that are numbered

in sequence; Insured provides two different receipts with same handwriting or typeface;

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Insured provides credit card receipts with incorrect or no approval code.


Person(s) 1) Coordinate with Volunteer Recruiting and Training Task Group to

develop seminar/course regarding the identification of potential market conduct, solvency issues, or fraud.

2) Report to the Executive/Policymaking Committee regarding marketplace availability and affordability issues for deciding when the market assistance plans may be activated.

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Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2. Executive/Policymaking Committee


Person(s) 1) Establish a schedule and hold regular briefings with appropriate

representatives from the Insurance Department Planning Subcommittee, the Combined Resources Subcommittee and all task groups.

2) Oversee and receive reports from the various task groups designated to implement assigned disaster-related activation duties and work with task groups to resolve any concerns/issues that arise.

Ongoing throughout disaster

3) Give directive to activate documentation and statistical reporting procedures pursuant to Section 24A of the Statistical Handbook of Data Available to Regulators (NAIC). (Appendix 7)

4) Evaluate trigger activations.

2.1 Insurance Department Planning Subcommittee


Person(s) 1) Communicate regularly with the Executive/Policymaking Committee. 2) Monitor the activation and status of the insurance community

liaisons, the insurance disaster assessment team, the emergency licensing of adjusters, the exceptions to common settlement practices, mediation program and the issuance of State Emergency Response Team (SERT) badges (if applicable).

2.1a Insurance Community Liaisons


Person(s) 1) Evaluate the most recent exposure data to identify companies whose

customer base is greatest and is considered to be at high risk in impacted areas.

Immediate

2) Activate insurance community liaisons of affected insurance companies and notify primary or secondary contact persons (e.g., via teleconference).

3) Solicit and evaluate coverage data and loss statistics on an ongoing basis. Compile data from the insurance community liaison disaster reporting form.

4) Distribute aggregate industry data to appropriate parties. Compile data from the insurance community liaison disaster reporting form.

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2.1b Mediation Program


Person(s) 1) Monitor claims payment/settlement information to determine the

need to activate a mediation program (from the insurance community liaison disaster reporting form).

2) Monitor consumer complaints to determine the need to activate a mediation program.

2.1c Exceptions to Common Settlement Practices


Person(s) 1) Initiate and authorize notification to insurers of exceptions to

common settlement practices as dictated by the disaster.

2) Work with industry to resolve problems/issues, or agree on new exceptions as the need arises.

2.1d Market Assistance Plans


Person(s) 1) Solicit and evaluate information from appropriate task groups

regarding the need to activate the state’s market assistance plan.

2.1e Insurance Disaster Assessment Team


Person(s) 1) Tour the affected area(s) as soon as possible to evaluate the

damage and provide initial estimates, as well as estimates of the number of adjusters needed.

2) Work with insurance industry and local/state/federal agencies to resolve any concerns/issues that arise.

Ongoing throughout disaster

2.1f Emergency Licensing of Adjusters


Person(s) 1) Authorize the activation of procedures for emergency licensing of

adjusters if needed. (When triggers are met and a decision has been made to activate this process.)

2) Update/authorize the list of emergency licensed adjusters and distribute to designated insurance department staff.

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2.1g Early Access for Adjusters


Person(s) 1) Notify insurers that adjusters with the State Emergency Response

Team (SERT) badges may enter the disaster area(s) and remind industry what identification will be needed to enter affected area(s) on an early basis (as soon as the insurance department is notified by an emergency management agency that SERT adjusters may be activated and assuming that SERT badges have been issued to adjusters.)

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2.2 Combined Resources Subcommittee


Person(s) 1) Communicate with task groups and report to the

Executive/Policymaking Committee.

2.2a Logistics Task Group


Person(s) 1) Implement all necessary technical requirements requested by other

task groups.

2) Respond to and resolve logistical and technical issues that arise with Disaster Response Plan activation duties (as needed).

3) Activate all implementation plans as dictated by magnitude of the disaster.

4) Document implementation issues for future reference and planning.

5) Report to the Combined Resources Subcommittee. As necessary

2.2b Coordination/Communications Task Group


Person(s) 1) Activate all communications with designated representatives. 2) Contact NAIC zone disaster response coordinators and alternate

zone disaster response coordinators to coordinate needs, information, etc.

3) Identify and report known resource needs that may be addressed by other organizations.

4) Solicit and review information regarding any requests for or offers of assistance from other states. Observe Emergency Management Agency Compact (EMAC) process, if requesting/offering states are EMAC members, or work with the state directly.

5) Report regularly to the Combined Resources Subcommittee.

2.2c Command Post Task Group


Person(s) 1) Determine whether the disaster dictates activating the command

post and if so, designate location, staffing, etc., using previously accepted triggers to guide decision-making.

Disaster declared

2) Establish the necessary number and locations of temporary disaster field offices, following the occurrence of a disaster (may be in an existing state or federal office). Notify Logistics Task Group to set up command post, logistics and technical requirements.

3) Coordinate the placement of insurance department staff and insurer representatives in the affected areas as soon as possible.


Person(s)

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4) Cooperate with the appropriate federal and state agencies and the insurance industry concerning early damage assessment and granting insurance professionals the earliest possible access to the disaster site.

5) Receive feedback on location and scope of the disaster from appropriate sources in the field.

6) Determine whether insurance community liaisons and/or other industry representatives should be present in the command post and if so, notify primary and/or secondary contacts.

7) Determine the number of insurance department personnel needed to staff the command post and any insurance department satellite and/or temporary field offices and request accordingly.

8) Continue to assess the scope of the disaster and provide resources necessary to implement and carry out the Disaster Response Plan.

Ongoing during the disaster

9) Communicate useful information to local, state and/or federal emergency management personnel and consumers in affected area(s) via insurance department satellite and/or temporary field offices or by other means.

10) Receive status reports from insurance department satellite and/or temporary field offices and monitor their activities.

Daily

11) Report to the Combined Resources Subcommittee. As needed

2.2d Consumer Information Hotline Task Group


Person(s) 1) Staff and activate the hotline at an appropriate location as directed

by the Executive/Policymaking Committee or Combined Resources Subcommittee.

Immediate

2) Request activation of other communication options (if needed). 3) At the direction of the Combined Resources Subcommittee, set

hotline hours of operation.

4) Notify hotline volunteers of duties and shifts. 5) Distribute hotline kit materials from the Volunteer Recruiting and

Training Task Group to staff/volunteers.

6) Provide regular reports to the Combined Resources Subcommittee regarding the need for additional lines.

7) Notify the Combined Resources Subcommittee of the need for additional volunteers or volunteers with multilingual skills.

8) Monitor and track the types and nature of disaster-related calls and provide information to command post for appropriate dissemination.

9) Coordinate with the Volunteer Recruiting and Training Task Group to ensure that volunteers receive a refresher course prior to hotline activation and on an ongoing basis as warranted.

29

2.2e Media Relations Task Group


Person(s) 1) Provide guidance or qualified speakers to address issues raised at

town meetings.

2) Distribute press releases, public service announcements and other advisory information to units of the government throughout the disaster area so they may reproduce them for local residents if desired. (Contact the NAIC for assistance in bulk reproduction, if necessary.)

3) Work with the Consumer Information Hotline Task Group to publicize the hotline.

4) Maintain constant communication with the command post and insurance department satellite and/or temporary field office(s) to coordinate information flow so that information supplied to media is consistent, accurate and timely.

5) Provide any media needs throughout the disaster.

2.2f Volunteer Recruiting and Training Task Group


Person(s) 1) Determine from the Executive/Policymaking Committee and/or

Consumer Information Hotline Task Group whether the volunteer pool should be activated, and for which volunteers (e.g., command post, field duties, hotline duties or all).

2) Discuss insurance department volunteer status with appropriate managers to ensure that internal staffing needs are still being met if volunteers participate in disaster activities.

3) Determine from Combined Resources Subcommittee whether industry and/or community volunteers are needed.

4) Notify activated volunteers according to previously established notification protocol.

5) Assure that volunteer kits contain all necessary supplies. 6) Work with the Logistics Task Group to ensure that volunteers have

all the logistical/technical equipment necessary and that all equipment is in working order (e.g., cell phones, laptops, pagers, etc.).

7) Provide volunteers with refresher courses, if necessary. 8) Monitor volunteer activity and provide additional training,

volunteer replacements, etc., as needed.

9) Report volunteer pool information and status to the command post. Daily or as necessary

10) Collect information from field staff and report to: • Executive/Policymaking Committee • Combined Resources Subcommittee • Volunteer groups going to the field

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2.2g Market Monitoring Task Group


Person(s) 1) Participate in meetings held by the Command Post Task Group,

Consumer Information Hotline Task Group and others to solicit feedback regarding potential market response issues.

Ongoing

2) Document findings and initiate appropriate research or investigation as appropriate (see insurance fraud indicators listed in Section 1.2g).

3) Recommend action to the Executive/Policymaking Committee, insurance department insurer solvency unit or legal unit.

As necessary

31

Section III. Post Disaster Tasks 3. Executive/Policymaking Committee


Person(s) 1) Coordinate debriefing meetings with key industry representatives. 2) Conduct debriefing of all Executive/Policymaking Committee

members, Insurance Department Planning Subcommittee and Combined Resources Subcommittee members to document suggestions for improvement to the Disaster Response Plan.

3) Ensure that documentation and statistical reporting procedures are completed pursuant to Section 24A of the Statistical Handbook of Data Available to Regulators (NAIC) (Appendix 7).

4) Participate in any legislative or rule-making process that develops from the disaster event.

5) Review and update procedures as needed.

3.1 Insurance Department Planning Subcommittee


Person(s) 1) Attend debriefing with the Executive/Policymaking Committee. 2) Evaluate success of the insurance community liaisons, the

insurance disaster assessment team, the emergency licensing of adjusters, the exceptions to common settlement practices and the mediation program, and formulate any needed plan improvements.

3) Compile and summarize reports, documents and statistics submitted by the insurance community.

4) Coordinate the distribution of data to the public in conjunction with state confidentiality laws.



Person(s) 1) Solicit input regarding the success of the insurance department in

activating and communicating with the insurance community liaisons during the disaster.

2) Review comments and update procedures as needed.



Person(s) 1) Activate program and notify insurance industry that activation has

occurred.

2) Publicize program so that consumers are aware of its existence. 3) Monitor program activity. 4) Evaluate program success and need for continuance. 5) Review and update procedures as needed.

32



Person(s) 1) Hold debriefing meetings regarding exceptions to practices to

evaluate success.




Person(s) 1) Determine whether market assistance plans should be activated

and determine scope. Recommendation: A market assistance plan may be considered if

a disaster disrupts the operations of the state’s normal voluntary insurance markets to a significant extent. Information that might lead insurance regulators to conclude that market assistance plans should be established would include a significant increase in the number of complaints about the availability of insurance coverage being sought by consumers or businesses.

2) Submit market assistance plan proposals to the Commissioner/Director for approval and implementation (by rule or other procedure if necessary).

3) Monitor the market assistance plan’s activity. 4) Evaluate the market assistance plan’s success. 5) Deactivate the market assistance plan as determined by pre-

established protocols.




Person(s) 1) Debrief team members and volunteer pool participants and provide

recommendations for improvement to the Insurance Department Planning Subcommittee.

2) Conduct formal debriefing with the Insurance Department Planning Subcommittee.

3) Evaluate insurance disaster assessment team procedures.

3.1f Emergency Licensing of Adjusters


Person(s) 1) Evaluate execution of the emergency licensing procedures. 2) Make recommended changes as necessary.

33

3.1g Early Access for Adjusters


Person(s) 1) Evaluate execution of State Emergency Response Team (SERT)

badges (if applicable).

2) Make recommended changes as necessary.

34



Person(s) 1) Conduct a formal debriefing following any disaster where the

Combined Resources Subcommittee action plans are activated. This may be in addition to or in lieu of a bi-annual meeting (or other scheduled meeting).

2) Receive reports from the task groups as to status, ongoing needs and concerns, and suggestions for future improvement to the Disaster Response Plan.

3) Host a fact-finding meeting to assess the effectiveness of advanced preparations.

4) Recommend appropriate amendments to the Disaster Response Plan.




Person(s) 1) Debrief task group members and working staff. 2) Provide recommendations for improvements to the Combined

Resources Subcommittee.

3) Verify inventory and condition of information technology resources. 4) Provide damage assessment or loss reports to the Combined


5) Deactivate any temporary systems as conditions dictate. 6) Review and update procedures.



Person(s) 1) Conduct a formal debriefing to document outstanding and/or

closed issues.

2) Review and update procedures.



Person(s) 1) Deactivate the command post and satellite/temporary field office(s)

as determined by pre-established protocols.

2) Notify all appropriate parties of deactivation when pre-established triggers are met, or when the Commissioner/Director determines what is no longer necessary.

3) Conduct debriefing of all command post participants, satellite and/or temporary field staff personnel, and provide recommendations for improvements to the Combined Resources Subcommittee.


35



Person(s) 1) Deactivate the hotline when pre-established protocols are met or

the Commissioner/Director determines it is no longer necessary.

2) Coordinate with the Media Relations Task Group to publicize deactivation of the hotline.

3) Debrief task group members and volunteer pool participants. 4) Provide recommendations for improvements to the Combined



3.2e Media Relations Task Group


Person(s) 1) Conduct debriefing of the task group, media contacts and others

affected by the task group’s activities.

2) Provide recommendations for improvement to the Combined Resources Subcommittee.

3) Publish statistics as directed by the Executive/Policymaking Committee.




Person(s) 1) Debrief task group members and volunteer pool participants. 2) Provide recommendations for improvements to the Combined


3) Update the volunteer kits according to debriefing recommendations.




Person(s) 1) Conduct or participate in debriefing meetings of appropriate task

groups to further document market response issues.

2) Document findings and recommend action to the Executive/Policymaking Committee, insurer solvency unit or legal unit, as warranted.


36

Appendices

to the

NAIC Disaster Response Plan Handbook

37

38

Appendix 1: Referral Sources for Consumers Other state and federal regulatory agency contact information1

Name Mission Address, Phone

Information E-Mail Web Site FEMA (Federal Emergency Management Agency)

Helping people before, during and after disasters. Has a mission to lead America to prepare for, prevent, respond to and recover from disasters with a vision of “A National Prepared.”

FEMA 500 C Street, SW Washington, D.C. 20472 Phone: 202-566-1600 800-462-9029

http://www.fema.org/

SEMA (State Emergency Management Agencies)

“…To protect the lives and properties of each state when major disasters threaten public safety in any city, county or region of each state. SEMA responds to two types of disasters - natural and manmade. SEMA is also responsible for developing a State Emergency Operations Plan which coordinates the actions of State government departments and agencies in the event of any emergency requiring use of State resources and personnel.”

Missouri Emergency Management Agency P.O. Box 16 2302 Militia Drive Jefferson City, MO 65102 (573) 526-9100 (573) 634-7966 FAX

http://www.sema.state.mo.us/semapage.htm

National Flood Insurance Program

The Federal Insurance & Mitigation Administration (FIMA) manages the National Flood Insurance Program and oversees FEMA's mitigation programs. The National Flood Insurance Program, Program Description offers a more detailed overview and history of the program.

Region VII (IA, KS, MO, NE) 2323 Grand Blvd, Suite 900 Kansas City, MO 64108-2670 816-283-7061 Or 601 N. Mur-Len Rd. Suite 13-B Olathe, KS 66062-5445 913-780-4238 fax: 913-780-4368 800-638-6620

http://www.fema.gov/nfip/

1 Some information relates to the state of Missouri but can be used to access your local agency.

39







http://www.fema.gov/doc/library/nfipdescrip.doc

http://www.fema.gov/doc/library/nfipdescrip.doc



Address, Phone Name Mission Information E-Mail Web Site

American Red Cross

Although the American Red Cross is not a government agency, its authority to provide disaster relief was formalized when, in 1905, the Red Cross was chartered by Congress to "carry on a system of national and international relief in time of peace and apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other great national calamities, and to devise and carry on measures for preventing the same." The Charter is not only a grant of power, but also an imposition of duties and obligations to the nation, to disaster victims, and to the people who generously support its work with their donations.

American Red Cross Greater KC Chapter 211 W Armour Blvd. Kansas City, MO 64111 Ph: 816-931-8400 Fax: 816-531-7306

[email protected]

http://www.kcredcross.org/

National Response Center

The NRC is the sole federal point of contact for reporting oil and chemical spills. If you have a spill to report, contact us via our toll-free number or check out our Web Site for additional information on reporting requirements and procedures.

800-424-8802 For those without 800 access, please contact us at 202-267-2675. The NRC operates 24 hours a day, 7 days a week, 365 days a year.

NRC Duty Officer lst-nrcinfo @comdt.uscg.mil

http://www.nrc.uscg.mil/ nrchp.html

Medical Research Institute of Infectious Diseases (biological)

The U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID) conducts research to develop strategies, products, information, procedures, and training programs for medical defense against biological warfare threats and naturally occurring infectious diseases that require special containment. USAMRIID, an organization of the U.S. Army Medical Research and Materiel Command (USAMRMC), is the lead medical research laboratory for the U.S. Biological Defense Research Program. The Institute plays a key role in national defense and in infectious disease research as the largest biocontainment laboratory in the Department of Defense (DOD) for the study of hazardous diseases.

Commander USAMRIID Attn: MCMR-UIZ-R 1425 Porter St. Fort Detrick Frederick, MD 21702-5011 888-872-7443

USAMRIIDweb @amedd.army.mil

http://www.usamriid.army.mil

40

mailto:[email protected]


http://www.redcross.org/cgi-bin/redirect/redirect.asp?url=http://www.kcredcross.org/&Exits=Chapter%3A+Greater+Kansas+City+Chapter

http://www.redcross.org/cgi-bin/redirect/redirect.asp?url=http://www.kcredcross.org/&Exits=Chapter%3A+Greater+Kansas+City+Chapter

http://www.nrc.uscg.mil/nrchp.html







http://www.usamriid.army.mil/




Centers for Disease Control and Prevention (CDC)

The Centers for Disease Control and Prevention (CDC) is recognized as the lead federal agency for protecting the health and safety of people - at home and abroad, providing credible information to enhance health decisions, and promoting health through strong partnerships. CDC serves as the national focus for developing and applying disease prevention and control, environmental health, and health promotion and education activities designed to improve the health of the people of the United States.

Public Inquiries (404) 639-3534 (800) 311-3435 Centers for Disease Control and Prevention 1600 Clifton Rd. Atlanta, GA 30333

http://www.cdc.gov/netinfo.htm

http://www.cdc.gov/

FBI The FBI's Field Offices are located in major cities throughout the United States and in San Juan, Puerto Rico. In addition, resident agencies are maintained in smaller cities and towns across the country. The FBI encourages the public to report any suspected violations of U.S. federal law. You can do so by calling your local FBI office.

FBI Kansas City 1300 Summit Kansas City, MO 64105-1362 (816) 512-8200

kansascity.fbi.gov

Police Dept The mission of the Kansas City, Missouri Police Department is to protect life and property, preserve the public peace, prevent crime and reduce fear and disorder in partnership with the community.

Kansas City Policy Department 1125 Locust St Kansas City, Missouri 64106 816-234-5000

http://www.kcpd.org/

Capitol Police Missouri Department of Transportation Missouri Capitol Police The Department of Public Safety will enhance the safety and security of Missouri citizens through: Promoting and coordinating efforts that contributes to the state’s public safety Enforcing laws and regulations, as well as providing services that are within its jurisdiction Planning and coordinating response, recovery and mitigation efforts in the event of natural or manmade disaster

Harry S. Truman Building, Suite 101 Post Office Box 36 Jefferson City, Missouri 65102-0036 Phone: 573-751-2764 Emergency: 573-522-2222 Fax: 573-526-3898 ORI : MO0261700

[email protected]

http://www.dps.state.mo.us/home/dpshome.htm

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http://www.cdc.gov/

http://www.cdc.gov/

http://kansascity.fbi.gov/

http://kansascity.fbi.gov/










Fire Department

The Kansas City, Missouri Fire Departments Mission is to provide a resource of competent, caring and capable assistance to the citizens and guests of our community. Every encounter with a citizen or guest is an opportunity to fulfill our mission. Each member of this agency must stand committed to deliver his or her very best ability with each opportunity to serve.

Kansas City, Missouri Fire Department 22nd floor, City Hall 414 E. 12th Street Kansas City, MO 64106 Phone: 816-513-1700 Fax: 816-513-1712

E-mail: [email protected]

http://www.fire-ems.net/

Emergency Medical Services

The National Highway Traffic Safety Administration's (NHTSA) mission is to save lives, prevent injuries and reduce traffic-related health care and other economic costs. The goal of NHTSA's EMS Division is to develop/enhance comprehensive emergency medical service systems to care for the injured patients involved in motor vehicle crashes. We are proud of the fact that improving EMS systems for the highway crash patients has a positive effect on all patients.

State Emergency Services Coordinator Robert E. Dopp, Executive Director Dept. of Public Safety—MERC 2303 Militia Drive Jefferson City, MO 65101 573-526-9237 573-526-9261

http://www.nhtsa.dot.gov/people/injury/ems/

MO State Highway Patrol

Protection Missouri’s Highways Since 1931 “Dedicated to Service and Protection”

PO Box 568, Jefferson City, Missouri 6510

http://www.mshp.state.mo.us/

State Fire Marshal

Missouri State Fire Marshal’s Office The MISSION of the Division of Fire Safety is to provide fire and life safety enforcement and education to all citizens so they receive the highest quality of services to ensure safety and a sense of well-being.

Effective March 1, 2003 2401 E. McCarty P.O. Box 844 Jefferson City, MO 65101 573-751-2930 FAX 573-751-1744

[email protected]

http://www.mdfs.state.mo.us/

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http://www.nhtsa.dot.gov/











Appendix 2: Market Assistance Plans I. A. FLORIDA STATUTE: Title XXXVII Chapter 627, View Entire Chapter,

Insurance Rates and Contracts 627.3515 Market assistance plan; property and casualty risks.—

(1) The department shall adopt a market assistance plan to assist in the

placement of risks of applicants who are unable to procure property insurance as defined in s. 624.604 or casualty insurance as defined in s. 624.605(1)(b), (e), (f), (g), or (h) from authorized insurers when such insurance is otherwise generally available from insurers authorized to transact and actually writing that kind and class of insurance in this state. Through such measures as are found appropriate by the board of governors, the market assistance plan shall take affirmative steps to assist in the removal from the Residential Property and Casualty Joint Underwriting Association any risk that can be placed in the voluntary market. All property and casualty insurers licensed in this state shall participate in the plan.

(2) (a) Each person serving as a member of the board of governors of the

Residential Property and Casualty Joint Underwriting Association shall also serve as a member of the board of governors of the market assistance plan.

(b) The plan shall be funded through payments from the Residential

Property and Casualty Joint Underwriting Association and annual assessments of residential property insurers in the amount of $450.

(c) The plan is not required to assist in the placement of any workers’

compensation, employer’s liability, malpractice, or motor vehicle insurance coverage.

B. FAQ (Frequently Asked Questions) What does FMAP do? FMAP is a service organization primarily dedicated to helping consumers find property and casualty insurance coverage from authorized insurers in the private market. FMAP also assists in depopulating the Florida Residential Property and Casualty Joint Underwriting Association. Is FMAP a state-run organization? No. FMAP was created by the Florida Legislature in 1985, but it is a private non-profit organization funded primarily by annual assessments on insurers authorized to write property and casualty insurance in Florida. Are the agents in FMAP’s Referral Database licensed? All agents in the database are licensed with the Florida Department of Insurance. For more information on agents and insurance companies, please access the Florida Department of Insurance link at the following web site http://www.fldfs.com/ Companies/ or call 800-342-2762.

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How does FMAP obtain its agent referral information? Agents who are appointed with admitted or authorized companies writing property and casualty insurance in Florida complete a questionnaire, and the information contained on the questionnaire is entered into our database. Periodically, FMAP surveys ill licensed property and casualty insurance agents in Florida to update its referral database. Is FMAP’s referral service free to consumers? Yes. There is no charge to consumers no matter how many times the consumer calls. Even the call 800-524-9023 is toll-free. How many calls does FMAP’s Customer Service Center receive daily? The Customer Service Center receives, on average, 100 calls daily. About 50% of the calls are from Dade, Broward and Palm Beach Counties. Why does FMAP charge a fee for providing agents with lists of FRPCJUA policies? Is personal information about the policyholders included in the list? Florida law requires FMAP to help depopulate the FRPCJUA. One method FMAP uses is to produce reports of JUA policies for subscribing agents. The annual fee of $25 per report pays for the expense of preparing and mailing the reports. Florida law also restricts the type of information FMAP can provide. For example, the JUA policyholder’s Social Security number, date-of-birth and other personal information is excluded in the reports. Also, the information that is provided must remain confidential. If you have additional questions or concerns, please call us at 800-524-9023, from Monday to Friday 8 a.m. to 5 p.m. C. Agent Referral Service FMAP’s Agent Referral Service can help you, the agent, expand your business by referring consumers to you who are seeking the kind of insurance you can write. Florida law requires FMAP to assist consumers in locating all lines of property and casualty insurance with the exception of workers’ compensation, employer’s liability, malpractice and motor vehicle coverage. FMAP’s Customer Service Center maintains a database of information on individual agents, and when consumers call the FMAP Customer Service Center, the FMAP representative provides them with a list of agents who can write the desired coverage within the consumer’s geographic area. Interested? To sign up, print, complete and fax the Property and Casualty Insurance Questionnaire to 850-513-3810, or mail it to the Florida Market Assistance Plan, P. 0. Box 1637, Tallahassee, FL 32302-1637. To ensure that FMAP refers only those consumers to whom you are able to offer insurance coverage, please provide complete information for each company you represent. D. Consumer Service Do you need assistance in locating insurance for your property or business? FMAP can help! FMAP maintains an extensive database that stores information on individual agents and the types of policies that they can write. In 1998, FMAP’s

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Customer Service Center assisted over 31,000 consumers seeking insurance coverage. When you call the FMAP Customer Service Center, the FMAP Representative provides you with names and telephone numbers of agents in your geographic area who can write the type of policy you need. Please don’t delay -call us now at 800-524-9023. The call is free and we’re here to help from 8 a.m. to 5 p.m. EST Monday through Friday. E. Commercial Application Program The Commercial Application Program assists commercial residential risks (condominium associations, apartment buildings and homeowners’ associations) in finding coverage in the voluntary market. In 1998, FMAP marketed over 600 commercial residential risks to agents and companies. If a commercial residential risk is unable to locate coverage, the producing agent may submit an application to FMAP for marketing. All new and renewal FRPCJUA commercial residential applications must be submitted to FMAP. FMAP contacts potential markets and sends the applications to authorized insurers or agents who are interested in writing the risks. If a qualified quote is obtained for a commercial residential risk, FMAP will send the producing agent a Letter of Ineligibility for FRPCJUA coverage. If FMAP is unable to place the commercial residential risk with an authorized insurer, FMAP will send a Letter of Unavailability to the producing agent, and the risk may then be submitted to the FRPCJUA. To participate in this program click on the Property and Casualty Insurance Questionnaire, print and complete the applicable sections of the form, specifically the agent and agency information; Section II -Commercial Residential; and Section IV -Counties. Fax the completed form to 850-513-3811, or mail it to the Florida Market Assistance Plan, P. 0. Box 1637, Tallahassee, FL 32302-1637.

For additional information on the Commercial Application Program, please call 850-513-3807 or 800-675-5342.

II. Maine Insurance Code: Title 24-A Chapter 25: Rates and Rating Organization

Subchapter 1: General Provisions §2325-A. Market assistance plans.— 1. Establishment. Whenever a particular type of insurance is unavailable or

unaffordable, the superintendent may establish a market assistance plan. 2. Definition. For purposes of this section a “market assistance plan” is a

voluntary agreement between the Bureau of Insurance and insurers that the Maine Legislature insurers will write insurance at an agreed upon rate for those persons or groups that are unable to obtain coverage.

3. Notification. Whenever the superintendent determines that a market assistance plan is needed, the superintendent shall notify all insurers authorized to write the type of insurance covered by the plan that a market assistance plan is being established and their participation in the plan is requested.

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4. Participation. Each insurer receiving a notice referred to in subsection 3, shall respond within 30 days to the notice. Their response shall indicate the extent to which they are willing to participate and any reasons why they do not wish to participate or only wish to participate on a limited basis.

5. Report. The superintendent shall report to the joint standing committee of the Legislature having jurisdiction over insurance by January30thofeach year whether there is, or may be, within the year a lack of availability in any line of insurance.

III. Ohio Statutes: Insurance Laws Chapter 3930—Commercial Market Assistance

Plan; Commercial Insurance Joint Underwriting Association.— 3930.02 Establishment of plan

(A) The Ohio commercial market assistance plan is hereby established to assist in the placement of commercial insurance risks located in this state. The plan shall operate under the auspices of the department of insurance and shall attempt to be self-supporting. If, however, the fees collected pursuant to division (C) of this section are not adequate to make the plan self-supporting, the balance of the cost of operating the plan shall be borne by the department. The plan is not an insurer and is not authorized to assume insurance risks.

(B) Only written requests for assistance meeting all of the plan criteria shall be

eligible for assistance by the plan. (C) Each request for assistance shall be in writing and shall be submitted by a

licensed Ohio agent or broker and accompanied by a fee, which shall be paid by the applicant for assistance and made payable to the “Ohio commercial market assistance plan.” Each request also shall be accompanied by a statement of the agent or broker, in accordance with procedures, standards, and requirements set forth in rules adopted by the superintendent of insurance, that at least three insurance companies have been contacted for the issuance of insurance and that coverage was not available from those companies. The fee shall be reasonable and determined by the plan after consultation with the superintendent.

(D) (1) In the event the coverage is placed through the plan with a request for

assistance submitted by an agent not appointed by the insurer and the insurer assigns another agent to service the insured, the insurer shall pay the agent a producing fee from the commission with the remaining balance of the commission paid to the agent assigned by the insurer to service the insured.

(2) The plan shall not be considered a party to the relationship among

insured, agent, and insurer.

(E) The superintendent of insurance shall appoint an executive committee, within thirty days of the effective date of this section, to administer the plan. The executive committee may appoint such other committees it considers appropriate to execute the purpose of the plan. The executive committee for the plan shall consist of nine members. Five members shall be

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representatives of commercial insurers and four shall be insurance agents, two of whom shall be representatives from excess surplus lines brokers. The superintendent shall serve as an ex-officio member of the executive committee. The executive committee shall develop a detailed written plan of operation. The plan of operation or any amendments thereto shall be submitted to the superintendent for approval within thirty days of the appointment of the executive committee. The plan of operation or amendments thereto shall be approved or disapproved by the superintendent within thirty days of submission by the executive committee or shall be deemed approved if the executive committee is not otherwise notified within the thirty-day period. The superintendent’s disapproval shall be for specific reasons stated in writing. If the superintendent disapproves the proposed plan of operation, the executive committee shall, within fifteen days, submit for approval an appropriately revised plan of operation. If the executive committee fails to submit a revised plan, or if the revised plan submitted is unacceptable, the superintendent shall adopt a plan of operation.

(F) The superintendent may suspend or reactivate the plan of operation. (G) (1) The executive committee shall designate a fiscal agent for the plan. The

fiscal agent is authorized to receive and hold funds submitted to the plan and to disburse them to pay reasonable and necessary expenses of the plan. The funds may be used for the necessary expenses of the plan, including but not limited to printing, postage, rent, mailing, telephone, and such other expenses incurred by the plan as the executive committee deems appropriate.

(2) The fiscal agent shall maintain books and records of all receipts and

disbursements and shall submit financial statements as requested by the executive committee of the plan. The superintendent or any executive committee member shall have access to such books and records during normal business hours.

(3) The fiscal agent shall maintain a bank account under the name of the

“Ohio commercial market assistance plan.” All checks drawn upon the account of the plan shall bear the signatures of the fiscal agent and another person duly authorized by the executive committee.

(4) If a surplus of funds exists at any time the plan is suspended, the then

existing surplus shall be disbursed to the state treasury to the credit of the operating fund of the department of insurance.

(5) Upon approval of the plan of operation and with the approval of the

existing Ohio MAP committee established by the department of insurance and the executive committee of the Ohio commercial market assistance plan, all assets and all submitted questionnaires of the existing Ohio MAP committee may be transferred to the Ohio commercial market assistance plan and all questionnaires submitted to the existing Ohio MAP committee may be transferred to the Ohio commercial market assistance plan.

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(6) There shall be no liability on the part of and no cause of action of any nature shall arise against any insurer, broker, agent, or any employee of the foregoing, employee or executive committee member of the Ohio commercial market assistance plan, or the superintendent of insurance or his representatives for any action taken by them in the performance of their powers and duties under sections 3930.01 to 3930.18 of the Revised Code.

IV. Oregon Insurance Code: Alternative Insurance Chapter 737: Market Assistance Plans; Joint Underwriting Associations.— Sec. 735.200 Legislative findings; purpose. (1) The Legislative Assembly finds that:

(a) Some businesses and service providers in Oregon have experienced major problems in both the availability and affordability of commercial liability insurance. Premiums for such insurance policies have recently grown as much as 500 percent and the availability of such insurance in Oregon markets has greatly diminished.

(b) These businesses and service providers are essential to achieve goals such as increased workforce productivity, family self-sufficiency and the maintenance and improvement of the health of the citizens of Oregon. The lack of adequate commercial liability insurance threatens these businesses and services.

(2) The Legislative Assembly therefore declares it is the purpose of ORS 735.200 to 735.260 to remedy the problem of unavailable commercial liability insurance for these businesses and service providers by authorizing the Director of the Department of Consumer and Business Services to assist in the establishment of a market assistance plan for providing commercial liability insurance for these businesses and service providers, or, if necessary, by requiring all insurers authorized to write commercial liability insurance in Oregon to be members of one or more joint underwriting associations created to provide commercial liability insurance for these businesses and service providers. [1987 c.774 §73]

Sec. 735.205 Definitions for ORS 735.200 to 735.260. As used in ORS 735.200 to 735.260:

(1) “Joint underwriting association” means a mechanism requiring casualty insurers doing business in Oregon to provide commercial liability insurance to certain businesses and service providers on either an assigned risk basis or through a joint underwriting pool underwritten to standards adopted under the Insurance Code.

(2) “Market assistance plan” means a mechanism through which admitted casualty insurers in this state provide commercial liability insurance for classes of risks designated by the Director of the Department of Consumer and Business Services. [1987 c.774 §74]

Sec. 735.210 Formation of market assistance plans. (1) After a public hearing, the Director of the Department of Consumer and

Business Services may by rule require insurers authorized to write and writing commercial liability insurance in this state to form a market assistance plan to assist businesses and service providers unable to purchase specified classes of commercial liability insurance in adequate amounts from either the admitted or nonadmitted market.

(2) The market assistance plan shall operate under a plan of operations prepared by admitted insurers, eligible surplus line insurers and agents, and approved by the director. [1987 c.774 §75]

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V. Texas Regulations Texas Administrative Code: TITLE 28.—INSURANCE Part I—

Texas Department of Insurance, Chapter 5—PROPERTY AND CASUALTY INSURANCE, Subchapter N.—Residential Property Insurance Market Assistance Program

28 TAC § 5.9400 Residential property insurance market assistance program executive

committee Former Citation 28 TAC § 5.10000 (a) Purpose and Scope of this Section. Adopted pursuant to Texas Civil Statutes,

Article 6252-33, which governs State Agency Advisory Committees, the purpose of this section is to specify the purpose, task, reporting requirements, membership composition, and duration of the Residential Property Insurance Market Assistance Program Executive Committee (the Executive Committee), which operates pursuant to the Insurance Code, Article 21.49-12.

(b) Purpose of the Executive Committee. The purpose of the Executive Committee is to

assist the Commissioner in the administration of the Residential Property Insurance Market Assistance Program (MAP) as authorized by the Insurance Code, Article 21.49-12.

(c) Tasks. The tasks of the Executive Committee are specified in the Insurance Code,

Article 21.49-12 and include those tasks specified in the following paragraphs (1)-(7).

(1) The Executive Committee shall develop and submit a MAP plan of operation

to the Commissioner for consideration of adoption by rule. (2) The Executive Committee shall advise and consult with the Commissioner in

the administration of the MAP. (3) The Executive Committee shall review the demand for and performance of the

MAP six months following the approval of the plan of operation, and at least annually thereafter as necessary, and report to the Commissioner as to the necessity for continued operation of a voluntary MAP, need for establishment of a mandatory MAP, or the need for establishment of a FAIR Plan pursuant to the Insurance Code, Article 21.49A or make other recommendations to the Commissioner that the Executive Committee deems appropriate.

(4) The Executive Committee may advise the Commissioner on the need for

subcommittees to carry out MAP functions.

(5) The Executive Committee shall advise the Commissioner on what information is needed for the Executive Committee’s periodic review of the MAP.

(6) The Executive Committee may advise the Commissioner on any other rules in

addition to the plan of operation that are needed to implement the MAP. (7) The Executive Committee shall perform other tasks as requested by the

Commissioner pursuant to the Insurance Code, Article 21.49-12.

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(d) Reporting Requirements. The reporting requirements of the Executive Committee are

specified in the Insurance Code, Article 21.49-12 and include those requirements outlined in the following paragraphs (1)-(3).

(1) The Executive Committee shall, within 180 days following the August 28,

1995 effective date of Article 21.49-12, develop and submit the MAP plan of operation to the Commissioner for consideration for adoption by rule.

(2) The Executive Committee shall review the demand for and performance of the

program six months following the approval of the plan of operation, and at least annually thereafter as necessary, and report to the Commissioner as to the necessity for continued operation of a voluntary MAP, need for establishment of a mandatory MAP, or the need for establishment of a FAIR Plan pursuant to the Insurance Code, Article 21.49A or make other recommendations to the Commissioner that the Executive Committee deems appropriate.

(3) The Executive Committee shall provide, at the time as requested by the

Commissioner, any other reports or information requested by the Commissioner and necessary to the Commissioner for the implementation of the Insurance Code, Article 21.49-12.

(e) Membership.

(1) Appointed by the Commissioner pursuant to the Insurance Code, Article 21.49-12 § 3, the Executive Committee is composed of 11 members: five members who represent the interests of insurers, four public members, and two members who are licensed local recording agents.

(2) The Commissioner or the Commissioner’s designated representative shall be

an ex officio member of the Executive Committee and must be present in every meeting of the Executive Committee.

(3) Any appointee resigning from the Executive Committee shall be replaced by

the Commissioner with another appointee representing the same constituency as the resigning appointee.

(f) Duration. Pursuant to the Insurance Code, Article 21.49-12, § 6(b), the MAP

program shall be terminated only upon approval of the Commissioner of Insurance, but in no event earlier than 48 months following the commencement date of the initial plan of operation. Termination of the MAP shall constitute termination of the membership and operation of the Executive Committee.

28 TAC § 5.9403 Definitions Former Citation 28 TAC § 5.10003 The following words and terms when used in this plan of operation, which is contained in §§ 5.9401—5.9415 of this title (relating to the Residential Property Insurance Market Assistance Program Plan of Operation), shall have the following meanings unless the context clearly indicates otherwise.

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(1) Agent commissions—The portion of the premium paid by an insurer participating in

the Residential Property Insurance Market Assistance Program for production of the residential property insurance business pursuant to Article 21.49-12 § 4 of the Insurance Code.

(2) Application—The form promulgated by the Texas Department of Insurance to be

completed by an applicant and the originating agent and submitted to the Texas Department of Insurance or completed by an applicant and the Department to apply for assistance in obtaining residential property insurance through the Residential Property Insurance Market Assistance Program.

(3) Commissioner—Commissioner of Insurance of the State of Texas. (4) Department—Texas Department of Insurance. (5) Designated underserved area—An area determined and designated by rule as an

underserved area by the Commissioner of Insurance, pursuant to Article 21.49-12 of the Insurance Code, using the standards specified in Article 5.35-3 § 1 of the Insurance Code.

(6) Executive Committee—The 11-member body appointed by the Commissioner of

Insurance and authorized pursuant to Article 21.49-12 of the Insurance Code to advise and consult with the Commissioner with regard to the administration of the Residential Property Insurance Market Assistance Program.

(7) Insurer—Any insurer licensed to write property or casualty insurance and actually

writing residential property insurance in Texas, including Lloyd’s, reciprocals, or interinsurance exchanges; an insurer is actually writing residential property insurance in Texas if the insurer has reported under the statistical plan a positive number for residential property insurance direct written premium during the last reporting period.

(8) Issuing agent —

(A) A licensed local recording agent appointed to represent the insurer providing residential property insurance coverage through the Residential Property Insurance Market Assistance Program who signs, executes, and delivers the policies of insurance; maintains a record of the business; examines and inspects the risk; receives and collects premiums; and performs other customary duties of a local recording agent; or

(B) A salaried representative for an insurer whose plan of operation does not

contemplate the use of local recording agents appointed to represent the insurer providing residential property insurance coverage through the Residential Property Insurance Market Assistance Program who signs, executes, and delivers the policies of insurance; maintains a record of the business; examines and inspects the risk; and receives and collects premiums; and performs other customary duties of a local recording agent.

(9) Manufactured home—Mobile home, manufactured housing, or manufactured home

as defined in the Texas Manufactured Housing Standards Act (Texas Revised Civil Statutes, Article 5221f).

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(10) MAP—the Residential Property Insurance Market Assistance Program authorized

and operated pursuant to Article 21.49-12 of the Insurance Code to assist consumers in Texas in obtaining residential property insurance coverage in underserved areas as determined and designated by the Commissioner of Insurance by rule.

(11) Originating agent—

(A) A licensed local recording agent authorized by Article 21.49-12 of the Insurance Code to complete an application for assistance on behalf of an applicant for submission to the Residential Property Insurance Market Assistance Program without being appointed to represent the insurer providing the coverage through the Residential Property Insurance Market Assistance Program; or

(B) A salaried representative for an insurer whose plan of operation does not

contemplate the use of local recording agents authorized by Article 21.49-12 of the Insurance Code to complete an application for insurance on behalf of an applicant for submission to the Residential Property Insurance Market Assistance Program without being appointed to represent the insurer providing the coverage through the Residential Property Insurance Market Assistance Program.

(12) Residence premises—The residence premises shown on the declarations page of the

insured’s residential property insurance policy and which includes the one-family or two-family dwelling and other private structures and grounds.

(13) Residential property insurance—Insurance against loss to real or tangible personal

property at a fixed location provided in a homeowners policy or residential fire and allied lines policy.

(14) Residential risk—Dwelling, manufactured home, or other private structure located

on the residence premises, and personal property contained therein. (15) Unaffiliated—Not an affiliate or not affiliated with another insurer or insurers as

“affiliate” is defined in the Insurance Holding Company System Regulatory Act (Article 21.49-1 of the Insurance Code).

28 TAC § 5.9407 Participating insurers Former Citation 28 TAC § 5.10007 (a) Eligibility. An insurer is defined in § 5.10003 of this plan of operation (also §

5.10003 of this title, relating to Definitions) is eligible to participate in the MAP. (b) Voluntary participation. (1) An insurer who wishes to participate in the MAP shall notify the Department in

writing of the insurer’s intent to voluntarily participate in the MAP. (2) An insurer may use any criteria from the MAP application to select applications for

review.

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(3) A participating insurer shall notify all agents appointed with the insurer that the

insurer is voluntarily participating in the MAP and shall provide to its agents information about the MAP and its procedures.

(4) A participating insurer shall provide the Department with no less than 30 days

advance written notice when the insurer decides to terminate its voluntary participation in the MAP.

(c) Required compliance with insurance laws and regulations. (1) A participating insurer shall comply with all laws, rules, and regulations governing

the operation of the MAP. (2) A participating insurer is subject to all other applicable laws, rules, and regulations

governing the writing of residential property insurance in this state. 28 TAC § 5.9408 Participating agents FORMER CITATION 28 TAC § 5.10008 (a) Qualifications.

(1) An individual is eligible to perform the functions of an originating agent for a MAP applicant if the individual, at the time the application to the MAP is completed, is duly licensed by the Department as a local recording agent or is a salaried representative for an insurer whose plan of operation does not contemplate the use of local recording agents.

(2) An individual is eligible to perform the functions of an issuing agent for an

insurer voluntarily participating in the MAP if the individual is duly licensed by the Department as a local recording agent and is appointed to represent the insurer or is a salaried representative for an insurer whose plan of operation does not contemplate the use of local recording agents.

(b) Functions of an originating agent.

(1) The originating agent shall complete the application for assistance in obtaining residential property insurance on behalf of the MAP applicant.

(2) The originating agent shall submit the application and documentation

required by subsection (e) of § 5.9406 of this plan of operation (also subsection (e) of § 5.9406 of this title, relating to Eligibility for Referral) regarding cancellation, non-renewal, or declination to the MAP as soon as possible, but no later than the fifth business day following completion of the application.

(3) Pursuant to Article 21.49-12 § 4(f) of the Insurance Code, if the originating

agent and the issuing agent are not the same person, the originating agent may not be held to be the agent of the insurer unless there is an appointment as specified by Article 21.14 of the Insurance Code.

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(c) Functions of an issuing agent.

(1) The issuing agent shall perform all of the customary duties of a local recording agent including, but not limited to, the following:

(A) signing, executing and delivering policies of insurance; (B) maintaining a record of the business; (C) examining and inspecting the risk; and (D) receiving and collecting premiums.

(2) The issuing agent may also be the originating agent.

(d) Agent commissions.

(1) Originating agent’s commission. (A) Pursuant to Article 21.49-12 § 4(e) of the Insurance Code, the

originating agent shall share commissions with the issuing agent. (B) The originating agent’s share of the commission for the original policy

term shall be as follows: $25 when the policy premium is $500 or less, and $50 when the policy premium is over $500.

(C) If the issuing agent is a licensed local recording agent, the originating

agent’s share of the commission for policy renewals shall be 25 percent of the amount of the commission paid to the issuing agent by the insurer. If the issuing agent is a salaried representative, the originating agent’s commission fee for policy renewals shall be $15. The renewal commission and renewal commission fee requirements shall apply only to policy renewals in which the insurer is the same insurer as when the original policy was issued through the MAP.

(D) Within five working days after the issuance date of the insurance

policy issued through the MAP, the insurer shall notify the Department by mail or facsimile transmission via the electronic database and the originating agent in writing or via electronic means that the insurance policy was issued. The notice shall include the insurance policy number and the name, address, telephone number, and fax number of the issuing agent.

(E) The issuing agent shall be responsible for payment of the originating

agent’s share of the commission and commission fee as specified in subparagraphs (B) and (C) of this paragraph within 30 days after the date the commission payment is made to the issuing agent by the insurer.

(2) Issuing agent’s commission. The payment of the commission to the issuing

agent is based on the contract or agreement between the insurer and the issuing agent.

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28 TAC § 5.9409 Operations Former Citation 28 TAC § 5.10009 (a) Application process.

(1) Applications will be accepted from a duly licensed local recording agent or from a salaried representative for an insurer whose plan of operation does not contemplate the use of local recording agents.

(2) Agents submitting applications to the MAP shall use the application form

(TMAP-10) promulgated by the Department for use with the MAP, shall submit a completed application packet as specified in paragraph (4) of this subsection, and shall submit such applications to the Department’s MAP Division.

(3) Applicants may apply directly to the MAP by contacting the Department to

obtain the Department’s assistance in completing the MAP application form (TMAP-10). Applicants applying directly to the MAP must meet the same eligibility requirements as provided in § 5.9406 of this plan of operation.

(4) For applicants applying directly to the MAP, information will be requested by

Department staff from the applicant based on the same information elements required in the MAP application form (TMAP-10) required of originating agents. Information relating to the originating agent will be marked “not applicable” or “N/A.” In the applicant’s signature box, the Department staff member will indicate “call received by TDI on (date)” with staff member’s initials.

(5) The Department staff will assist applicants applying directly to the MAP as

specified in subparagraphs (A)—(C) of this paragraph.

(A) The Department staff member will request ZIP code information to verify that the risk is located in a designated underserved area.

(B) The Department staff member will request documentation as specified

in subsection (e) of § 5.9406 to verify that the applicant has been unable to obtain residential property insurance within the one year period preceding the date of application to the MAP. If requested, the Department staff member will make a diligent effort to assist the applicant in obtaining the required documentation concerning the applicant’s inability to obtain residential property insurance.

(C) Upon receipt of the documentation showing the applicant’s inability to

obtain residential property insurance, the Department staff member will determine if the applicant is eligible to participate in the MAP.

(6) A completed application packet shall consist of the following to be eligible for

referral to participating insurers:

(A) a completed application form (TMAP-10) signed by both the applicant

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and the originating agent; or if an applicant applies directly to the Department, the application will be initialed and dated by the staff member assisting with the completion of the application as provided in paragraph (5) of this subsection.

(B) declination letter or letters or non-eligibility letter or letters as provided

in § 5.9406 of this plan of operation (also § 5.9406 of this title, relating to (Eligibility for Referral)); and

(C) cancellation or non-renewal notices as provided in § 5.9406 of this

plan of operation (also § 5.9406 of this title, (relating to Eligibility for Referral)).

(7) An application shall indicate if the applicant has a voluntary inspection

property condition evaluation report and certificate of insurability, as specified in § 5.9406 of this plan of operation (also § 5.9406 of this title, relating to Eligibility for Referral). The applicant may provide a copy of the report and the certificate to the insurer at the time of the insurer’s inspection of the residential risk.

(b) Application review. The Department’s MAP Division shall perform the application

review and referral as specified in this subsection and subsection (c) of this section.

(1) If the application is submitted by an originating agent, preliminary processing shall include review of the application for signatures of the applicant and originating agent, logging in of names and addresses of applicant and originating agent, and notification of the originating agent in writing or via electronic means of the receipt of the application.

(2) If the applicant has applied directly to the MAP, preliminary processing shall

include logging in name and address of the applicant. (3) Applications, including the information on the residential risks proposed to

be insured, shall be verified by the Department’s MAP Division for compliance with the requirements specified in this section and in § 5.9406 of this plan of operation (also § 5.9406 of this title, relating to Eligibility for Referral).

(4) Applications submitted by an originating agent that are ineligible for referral

through the MAP will be returned to the originating agent within 14 calendar days of receipt by the Department with written documentation stating the reason or reasons for the ineligibility. A copy of the notice of ineligibility shall be sent to the applicant.

(c) Referral of applications.

(1) Information from eligible MAP applications as specified in paragraph (2) of this subsection shall be faxed or provided electronically by the Department’s MAP Division to all participating insurers for selection for purposes of issuing a quote.

(A) If a policy has not been issued within 90 days from the date the

application is entered on the Department’s MAP application data base,

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the Department’s MAP Division shall notify the originating agent, if the application was submitted by an originating agent, or the applicant, if the applicant applied directly to the Department, in writing or via electronic means.

(B) The MAP application shall remain as an active MAP application

available for selection and quoting by an insurer until a policy is issued but for no longer than one year from the date the application was either entered on the electronic bulletin board or entered on the MAP application database.

(C) If a policy has not been issued within one year from the date the

application is entered on the MAP application database and faxed to participating insurers, the application shall be considered inactive and the Department’s MAP Division shall notify the applicant in writing and the originating agent in writing or via electronic means.

(2) The information provided to participating insurers shall include the following:

(A) originating agent’s name, mailing address, telephone number, fax

number, and agent’s TDI identification number if submitted by an originating agent;

(B) name of applicant and co-applicant, mailing address, and phone

number; (C) applicant’s military status; (D) designated underserved area in which property to be insured is

located, including location zip code, whether in Class 1 designated underserved area or Class 2 designated underserved area, and the county where the property is located;

(E) location of property to be insured, including if same as applicant’s

mailing address, and if not, street address and city; (F) rating Information:

(ii) type of construction; (iii) policy form requested; (iv) dwelling and personal property coverage amounts;

(i) public protection classification code used;

(v) deductible; (vi) year built; (vii) structure type; (viii) usage type; (ix) owner or tenant occupancy;

(G) availability of Voluntary Inspection Program certification.

(d) Insurers’ processing of selected applications.

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(1) Application review and property inspection.

(A) An insurer may select MAP applications for review based on criteria contained on the application.

(B) Prior to issuing a quote or writing a policy, an insurer should

underwrite the risk in accordance with the insurer’s applicable underwriting procedures, including inspecting the property and obtaining the insurer’s own application insurance. An insurer shall evaluate each risk in accordance with the provisions set forth in §§ 5.10004 and 5.10005 of this plan of operation (also § 5.10004 of this title, relating to Policy Forms and Types of Coverage, and § 5.10005 of this title, relating to Rates).

(2) Determination of whether to issue premium quote.

(A) An insurer shall make its premium quote or indicate the insurer’s

refusal to quote within 30 days after selecting the application. (B) If the insurer, however, has not quoted or refused to quote by the 30th

day after selecting an application, the insurer shall be considered to have requested additional time and shall have an additional 15 days to quote or to refuse to quote. Within 45 days after selecting an application, the insurer shall notify the Department’s MAP Division by mail or facsimile transmission that the insurer has quoted or has refused to quote.

(C) An insurer shall issue a premium quote as specified in paragraph (3) of

this subsection.

(3) Issuance of premium quote. Insurers shall issue premium quotes in accordance with the following provisions:

(A) An insurer shall send its quote directly to the MAP applicant and

simultaneously report the required information as specified in subparagraph (C) of this paragraph to the Department by mail or facsimile transmission.

(B) An insurer’s quote shall be valid for at least 30 days after the date the

quote is issued. Within 35 days after issuance of the quote, the insurer shall notify the Department’s MAP Division by mail or facsimile transmission that the quote has been accepted or rejected by the applicant. If an applicant has not affirmatively rejected the quote by the thirty-first day after the quote is issued, the insurer shall notify the Department’s MAP Division by mail or facsimile transmission that the quote has been rejected.

(C) An insurer’s quote shall contain the following information:

(i) name and address of MAP applicant; (ii) MAP application TDI reference number; (iii) location of the residential risk to be insured;

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(iv) insurer’s name, mailing address, and phone number; (v) type of policy being quoted; (vi) the amount of premium due for the policy quoted, limits of

liability, applicable deductible, and term of the policy; (vii) issuance date and expiration date of the quote; (viii) instructions for the applicant to contact the issuing agent to

accept the offered quote; (ix) issuing agent’s name, mailing address, phone number, and fax

number.

(4) Notification of issuance of policy. If the application was submitted by an originating agent, within five business days after the issuance date of the insurance policy, the insurer shall notify the Department by mail or facsimile transmission and the originating agent in writing or via electronic means that the insurance policy was issued. The notification shall include the policy number and the name, address, telephone number, and fax number of the issuing agent.

(5) Inactive application. An application shall be considered inactive upon

acceptance of a quote by the applicant. (e) MAP data collection and analysis.

(1) The Department shall provide quarterly data analysis reports to the Executive Committee to enable the Executive Committee to fully evaluate the operations of the MAP.

(2) Upon the Executive Committee’s request, the Department shall provide

additional data and analyses of data for purposes of review of the MAP or for other purposes related to the administration of the MAP as deemed appropriate by the Executive Committee.

(f) Educational initiatives.

(1) The Department may provide educational information to consumers, agents, and insurers through:

(A) the development and distribution of educational materials outlining

the operation of the MAP; (B) seminars and workshops; (C) the print and electronic media, including public service

announcements, press releases, TV and radio community programs and local TV access stations.

(D) coordination of speaking and training programs with trade

associations and consumer organizations; and (E) use of the Internet System.

(2) Participating insurers may provide information to their appointed agents for

distribution to consumers.

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(3) Participating insurers may include a brief description of the MAP with any

cancellation or non-renewal notice issued on residential property insurance located in a designated underserved area.

(g) Complaints procedures.

(1) Complaints relating to the operation of the MAP shall be received and processed by the Department’s MAP Division.

(2) The complaints shall be handled in accordance with the Department’s

standard complaints handling procedures. (3) Until final disposition of the complaint, the complainant shall be notified

quarterly by the Department’s MAP Division of the status of the complaint. (4) The MAP Executive Committee shall be notified as part of its review and

monitoring of the MAP of all complaints relating to the operation of the MAP. 28 TAC § 5.9411 Criteria and procedures for mandatory participation by insurers Former Citation 28 TAC § 5.10011 (a) Purpose of this section. The purpose of this section is to specify:

(1) the criteria and procedures for implementation of mandatory participation by insurers on the Commissioner’s own motion without the need for a recommendation by the Executive Committee pursuant to Article 21.49-12 § 2(b)(7) of the Insurance Code which provides that the Commissioner may make insurer participation in the MAP mandatory based on criteria contained in this plan of operation; and

(2) the criteria and procedures to be used by the Executive Committee in

determining the need to recommend to the Commissioner implementation of mandatory participation by insurers pursuant to Article 21.49-12 § 6(b) of the Insurance Code which provides that the Executive Committee, after periodic review, shall report to the Commissioner as to the need for establishment of a mandatory program.

(b) Implementation of mandatory MAP on Commissioner’s own motion.

(1) The criteria and procedures for implementation of mandatory participation in the MAP by insurers on the Commissioner’s own motion and without a recommendation from the Executive Committee are as specified in paragraph (2) of this subsection.

(2) The Commissioner may, after notice and hearing, implement mandatory

participation by insurers in the MAP if any of the circumstances specified in subparagraph (A) or subparagraph (B) of this paragraph occur. An application shall not be counted for purposes of subparagraphs (A) and (B) of this paragraph unless the application has been either active for 90 days or a policy has been issued, whichever occurs first.

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(A) Less than 60% of the eligible applications, either on a statewide basis,

or in one or more designated underserved areas, or in unprotected portions of designated underserved areas, referred to participating insurers in the preceding 12 months, or in any other period as determined by the Commissioner, result in the issuance of at least one premium quote per application.

(B) Less than 40% of the eligible applications, either on a statewide basis,

or in one or more designated underserved areas, or in unprotected portions of designated underserved areas, referred to participating insurers in the preceding 12 months, or in any other period as determined by the Commissioner, result in the issuance of residential property insurance policies.

(c) Executive Committee’s determination of the need to recommend implementation of

mandatory MAP.

(1) Periodic review. Pursuant to Article 21.49-12 § 6(b) of the Insurance Code, the Executive Committee shall review the demand for and performance of the program six months following the approval of this plan of operation and at least annually thereafter, as necessary, and may make recommendations to the Commissioner on the need to implement mandatory participation by insurers in the MAP.

(2) Criteria for recommendation.

(A) The Executive Committee shall propose a recommendation for

mandatory participation by insurers if the committee determines that the level of voluntary participation by insurers is not sufficient to provide adequate opportunities for placement of residential property insurance through the program. The Executive Committee shall base its determination on the following factors:

(i) the number of applications eligible for referral received by the

Department statewide, in each designated underserved area, and in unprotected portions of designated underserved areas;

(ii) the number of premium quotes made per application statewide,

in each designated underserved area, and in unprotected portions of designated underserved areas;

(iii) the number of policies issued by participating insurers to MAP

applicants statewide, in each designated underserved area, and in unprotected portions of designated underserved areas; and

(iv) any other factor that the Executive Committee determines

reflects a lack of residential property insurance availability through the MAP.

(B) The Executive Committee may not make a recommendation for

mandatory participation by insurers for any designated underserved

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area unless the MAP has been operational in that underserved area for at least six months.

(3) Procedures for consideration of recommendation.

(A) Consideration of a recommendation for mandatory participation by

insurers in one or more designated underserved areas may be initiated as follows:

(i) the chairperson may place the item on the agenda for

consideration; or (ii) any three members of the Executive Committee may make a

written request to the chairperson for consideration for mandatory participation by insurers. The chairperson shall place the item on the agenda for consideration at the next meeting of the Executive Committee.

(B) Consideration shall occur at the next meeting of the Executive

Committee if the Subcommittee on Data Collection determines that any of the circumstances specified in clauses (i) or (ii) or (iii) of this subparagraph has occurred. An application shall not be counted for purposes of clauses (i) and (ii) of this subparagraph unless the application has been either active for 90 days or a policy has been issued, whichever occurs first.

(i) Less than 60% of the eligible applications, either on a statewide

basis, or in one or more designated underserved areas or in unprotected portions of designated underscored areas, referred to participating insurers in the preceding 12 months resulted in the issuance of at least one premium quote per application.

(ii) Less than 40% of the eligible applications, either on a statewide basis, or in one or more designated underserved areas, or in unprotected portions of designated underserved areas, referred to participating insurers in the preceding 12 months resulted in the issuance of residential property insurance policies.

(iii) The number of participating insurers for any designated underserved area is less than five.

(4) Public comment.

(A) The public shall be given the opportunity to provide comment to the

Executive Committee prior to the time the Executive Committee votes on the proposed recommendation.

(B) If written comments are solicited by the Executive Committee, such

comments should be addressed to the Executive Committee, Market Assistance Program, Texas Department of Insurance.

(C) Any written comments that are received shall be attached to the copy

of the minutes of the Executive Committee meeting at which the proposed recommendation is considered. If minutes are not prepared, the written comments shall be maintained with the tape recording of the meeting.

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(D) The Executive Committee may, at its discretion, take oral comments

from the public at any meeting.

(5) Possible actions. The Executive Committee may take action on the recommendation for mandatory participation as follows:

(A) the Executive Committee may withdraw the recommendation; (B) the Executive Committee may defer action on the recommendation,

pending further consideration; (C) the Executive Committee may withdraw its recommendation and

propose an amendment to this plan of operation; or (D) the Executive Committee may recommend to the Commissioner the

implementation of mandatory participation by insurers.

(6) Effect of withdrawal of recommendation. Withdrawal of a recommendation for mandatory participation by insurers for any designated underserved area shall not prohibit the Executive Committee from making another recommendation for the same or different designated underserved area at a later date.

(7) Approval of recommendation. A recommendation to the Commissioner by the

Executive Committee for implementation of mandatory participation by insurers must: (A) be approved by at least eight members of the Executive Committee; (B) state that the Executive Committee believes the level of voluntary

participation by insurers does not provide adequate opportunities for placement of residential property insurance to qualified applicants; and

(C) state the specific factors that are the basis for the recommendation. (8) Commissioner’s action on recommendation. Upon receipt of a

recommendation from the Executive Committee, the Commissioner may, after notice and hearing, implement mandatory participation by insurers in one or more designated underserved areas in the MAP.

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Appendix 3: Sample New Releases, Bulletins, Consumer Brochures, and Claim Forms

Carroll Fisher Insurance Commissioner

State of Oklahoma

September 14, 2001 Dear Fellow Regulators: My heartfelt prayers are with you during this time of the disaster, which has stricken your cities, and our Nation. Please be assured that the Oklahoma Insurance Department stands ready to assist you in any way possible. Pursuant to this goal, I am sending documents pertaining to the bombing of the Alfred P. Murrah Federal Building, which occurred in Oklahoma City, Oklahoma, on April 19, 1995. The information contained in this packet may provide some assistance to your departments as you work toward the monumental task set before you. I have enclosed specific information as to how the Oklahoma Insurance Department handled the crisis, as well as articles that were published concerning the insurance department’s role during the claims handling. If you have any questions, please feel free to contact me. With Sincere Prayers and Heartfelt Thoughts, Carroll Fisher Insurance Commissioner Attachments

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The Oklahoma Insurance Department would like to provide the following information to the States of New York and Washington, D.C., regarding actions that we took during the time after the bombing of the Alfred P. Murrah Federal Building. Adjusters Licenses Temporary adjuster licenses were issued on an emergency basis without the requirement of fees for those licenses. The adjusters who were provided with these temporary licenses were adjusters who were already licensed in other states. We gave the adjusters five days to present credentials showing their company affiliation and professional status as recognized by another state. Press releases were issued telling people that if they were contact by an adjuster to ask to see their credentials and emergency license. Enclosed are copies of those news releases. Claims The Oklahoma Insurance Department did not receive the first claims for about 11 days. We explained to the carriers that all claims pertaining to the disaster were to be handled with extreme care and that under the circumstances any limitations or exclusions in the insurance policies or certificates that attempted to limit or exclude for acts of terrorism, anarchy, war, and acts of war would have to be set aside. The claims were paid without regard to these limitations and exclusions. Enclosed are copies of those news releases. The exclusion for suicide will also need to be set aside if there are policies that contain that exclusion. We can’t imagine that any companies would attempt to use it to deny a claim but know that some policies have language of that nature, so thought we should mention it. We assigned one person to receive, assign and track any and all claims that pertained to the bombing. Due to the size of the losses sustained in New York, the staffing for claims receipt, assignments and tracking will probably need to be handled by several different members of the insurance department. Breaking the claims into alpha listings is the easiest way to handle them. We also had the largest carriers affected to put adjusters in our facility to assist claimants as they called or came into the department. Companies totaled out any vehicle that was parked in the Murrah Building or any other inaccessible location so transportation needs could be met. Death Claims were handled with Affidavits. Copy enclosed. We were also able to get approval from the FBI to get adjusters into the closed area early to speed up the process of repair and restoration. This will probably take longer for you all than it did for us due to the nature of the situation.

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Disaster Hotline We set up emergency telephones for questions about claims and prompt claims handling. The Hotline was staffed by Oklahoma Insurance Department, with the help of volunteers who were independent insurance agents. The agents that assisted were familiar with the life, health, property and casualty lines of coverage. We were able to have volunteers from each category for coverage present. The shifts were 4 hours each.

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John P. Crawford

Insurance Commissioner State of Oklahoma

Dear Fellow Regulators: The following summary was compiled to allow you the opportunity to review the steps the Oklahoma Insurance Department has taken subsequent to the bombing of the Alfred P. Murrah Federal Building, which occurred on April 19, 1995. As you will see in the following documents, this disaster has affected every aspect of life in Oklahoma City. The blast that rang out on that beautiful spring morning was felt throughout the world. I hope and pray that a tragedy of this nature never again strikes America. However, in the event that it does, this information may provide a small measure of help in dealing with the monumental task set before you. Sincerely, John P. Crawford Insurance Commissioner

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Action Information It has become apparent that there are individuals that may not be found or if found, identification will be impossible. This leads us to a position that we have not previously dealt with as it pertains to life insurance and the filing of death claims. The required time for an individual to be presumed to be dead, in Oklahoma, is seven years. This will be unacceptable as we work to help those who have lost loved ones. The Oklahoma Insurance Department is requesting insurance companies to allow and accept affidavits of death as viable proof of loss on life insurance contracts. The affidavits would indicate that the person upon whom the claim is being filed was in or near the Alfred P. Murrah Federal Building at the time of the explosion. There are also possibilities of limitations and exclusions in insurance contracts for acts of terrorism, war, acts of war and potentially others. These limitations and exclusions may not be invoked. This pertains to all types of contracts of insurance coverage. Should anyone become aware of insurance companies/carriers denying claims, contact (Name) at (___) ___-____.

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AFFIDAVIT OF DEATH I, ____________________________________, CERTIFY THAT _________________________________ (Name of relative, next of kin) (Name of deceased)

worked in the Alfred P. Murrah Federal Building, which was destroyed by a bomb on April

19, 1995, and was at work on that date at 9:02 a.m. when the bombing occurred.

I affirm that I have not seen or heard from ________________________________ (Name of deceased) since April 19, 1995, and that baring his/her demise, he/she would have been in contact

with me.

I further affirm that I am unable to secure a death certificate from the Chief Medical

Examiner at this time.

_________________________________ _________________ (Signature of relative/next of kin) (Date)

_________________________________ _________________ (Signature of witness) (Date) Notary Public

_________________________________ _________________ (Signature of Notary) (Seal) (Date) My Notary Expires: __________________

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Oklahoma Insurance Department Oklahoma in Crisis

Initial Responses to Disaster

Fear Disbelief Reluctance to abandon area where disaster occurred, including property Disorientation and numbing Difficulty in making decisions Need for information Seeking help for yourself and your family Helpfulness to other disaster victims

Later Responses

Change in appetite and digestive problems Difficulty in sleeping and headaches Anger and suspicion Apathy and depression Crying for “no apparent reason” Frustration and feeling of powerlessness over one’s own future Increased effects of allergies, colds, and flu Feelings of being overwhelmed Moodiness and irritability Anxiety about the future Disappointment with, and rejection of, outside help Isolating oneself from family, friends, or social activities Guilt over not being able to prevent the disaster Domestic violence

What You Can Do To Help

Recognize your own feelings Talk to others about your feelings, it will help relieve your stress and help you

realize that your feelings are shared by other victims Accept help from others in the spirit in which it is given Whenever possible, take time off and do something you enjoy Get enough rest and sleep Get as much physical activity as possible Give someone a hug; touching is very important Listen when you can to those who are having problems Be tolerant of the irritability and short tempers others may show—remember

everyone is stressed at this time Share information on assistance being offered and possible resources available

If you need assistance, please contact: (Name) (___) ___-____

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Dealing with Disaster

Provide Immediate Relief

Provide Means to Meet Necessities

Provide Comfort and Support

The responses to disaster may be anger, fear, disbelief, disorientation, numbness, and difficulty in making decisions among other things. Remember that we are here to help, care for, serve and love. Please read the accompanying news articles, the action and the after action report, expense and proposed supplement budget.

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Press Releases and Articles For Immediate Release 4/21/95

John P. Crawford Insurance commissioner

State of Oklahoma

Crawford Declares Emergency John P. Crawford, Oklahoma Insurance Commissioner, today declared a state of emergency to exist in conjunction with the bombing of the Murrah Federal Building in downtown Oklahoma City. “After surveying the sight and seeing the overwhelming loss of life and catastrophic damage in the area surrounding the bomb sight, I have declared a state of emergency to exist and therefore will set up procedures to issue licenses for emergency adjusters who are coming in to asses the damage and help people get their homes and businesses back in order,” Crawford said. Anyone wishing to be considered for the status of emergency adjuster has five days to present credentials to the Oklahoma Insurance Department showing their company affiliation and professional status as recognized by another state. “Major disasters tend to bring out the best and worst in people. We know that the vast majority of those adjusters coming into Oklahoma to help with the clean up and recovery will represent themselves and their companies with the utmost in professional performance, however there are those who come in to add to the misery and suffering by taking advantage of people when they are most vulnerable. Our job at the insurance department is to prevent unscrupulous adjusters from taking advantage of our citizens,” Crawford added. “If you are contacted by any adjuster, ask to see their credentials and emergency license. If you contract with an independent adjuster to make an evaluation of your damage make sure you agree ahead of time about any fee that you may be required to pay them. Any adjuster representing your insurance company will not ask you for a fee, they are paid by the insurance company. If you have any questions call our Claims Division Disaster Hotline at ___-____,” Crawford stated. Adjusters who need more information may contact the agents Licensing Division at (___) ___-____.

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For Immediate Release 4/24/95


State of Oklahoma Crawford Will Not Tolerate Any Claim Denial John P. Crawford, Oklahoma Insurance Commissioner, said today that he expects insurance companies to pay all claims resulting from the horrific bombing of the Murrah Federal Building in Oklahoma City. “I will not tolerate any insurance company attempting to use any clause in a policy relating to terrorism, insurrection or anarchy to avoid paying a claim. These claims must be paid promptly and efficiently so that the people of Oklahoma may go about the business of getting back to a sense of normalcy,” Crawford said. Due to the establishment of the crime scene, it may be weeks before some of the occupants may be allowed to reenter their buildings to start the rebuilding process. In the mean time they are out of business with no source of income. Individuals who are unable to get to their cars should contact their insurance agent about settling the claim or receiving reimbursement for a rental car. “I am aware of four companies; Allstate, State Farm, Farmers Insurance Group and Oklahoma Farmers Union; who are going ahead and totaling out any vehicle that was parked in the Murrah Building or any other inaccessible location,” Crawford added. “That means those individuals are able to take care of their transportation needs now. I commend those companies for their prompt action.” For any person having a problem with a claim being paid promptly or with questions relating to insurance, the Oklahoma Insurance Department, with the help of volunteers from various independent insurance agencies, has set up a Disaster Hotline to answer those questions. That number ___-____. Last week Crawford declared a state of emergency to exist that would speed up the process of allowing out of state adjusters to be approved to handle claims in the disaster. “We want to do everything we can to move this process along swiftly, however we are making sure that only qualified insurance adjusters are allowed to be approved. I want to warn any person who is asked for money from an adjuster to contact my office immediately. Under no circumstances should a legitimate adjuster ask for any money to handle your claim,” Crawford stated.

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For Immediate Release 4/28/95


State of Oklahoma

Crawford Cracks Down on Bogus Adjusters Last Thursday after surveying the bomb sight and seeing the Overwhelming loss of life and catastrophic damage in the area surrounding the bomb sight, John P. Crawford, Oklahoma Insurance Commissioner, declared a state of emergency to exist and which set into motion procedures to issue licenses for emergency adjusters coming in to assess the damage and help people get their homes and businesses back in order. “I have worked with Senator Inhofe and the FBI to get insurance adjusters into the closed area ahead of the game plan in order to speed up the process of repair and restoration,” Crawford said. “I have discovered that there were three unauthorized insurance adjusters attempting to take advantage of our citizens while they are at their most vulnerable and I have put a stop to it,” Crawford revealed today. “These individuals have come from out of state and have entered the disaster area, posing as legitimate insurance adjusters, stating that they don’t need to be licensed. I will not tolerate any individual, group or company that is not willing to be properly approved and licensed in this state to have any interaction with the victims of this disaster. I can only suspect that their intentions are less than honorable.” “We have notified the authorities in the disaster area to put these individuals out of business. They were wearing buttons that say ‘State Insurance Board.’ We have no such board in Oklahoma. I will prosecute these individuals to the full extent of the law,” Crawford stated. Anyone wishing to be considered for the status of emergency adjuster has five days to present credentials to the Oklahoma Insurance Department showing their company affiliation and professional status as recognized by another state. “If you are contacted by an adjuster, ask to see their credentials and emergency license. If you contract with an independent adjuster to make an evaluation of your damage, make sure you agree ahead of time about any fee that you may be required to pay them. Any adjuster representing your insurance company will not ask you for a fee, they are paid by the insurance company. If you have any questions call our Claims Division Disaster Hotline at ___-____,” Crawford stated.

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John P. Crawford

Insurance Commissioner State of Oklahoma

April 19, 1995, 9:02 a.m. An explosion ripped through the Alfred P. Murrah Federal Building, leaving death and destruction in its path. The first reaction of the citizens of Oklahoma was one of disbelief. Immediately thereafter the State of Oklahoma began pulling together in an effort to provide relief, assistance and comfort to all of the individuals whose lives have been touched by this tragedy. Oklahoma Insurance Commissioner John P. Crawford immediately made it known that all insurance matters were to be handled effectively and efficiently. There was no room for error and no room for tolerance concerning this matter. Claims were to receive top priority. Various exclusions placed in policies were disregarded as insurance companies began paying bomb victim claims. Commissioner Crawford advised that everyone wants to do the right thing and in retrospect it appears that the attitude of “lets get it right the first time” prevailed.

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Appendix 4A: South Carolina’s Disaster Response Volunteer Statement Volunteer Statement Statement of Policy The volunteering by department of insurance employees to work during and after a disaster is critical to meeting our responsibilities as a major disaster response and recovery agency. The department places a tremendous value on sacrifices made by volunteers, supervisors and managers who not only accommodate, but also encourage employees to volunteer. While insurance knowledge is preferable, employees with the willingness to learn and assist consumers are welcome to volunteer. Purpose To articulate the importance of department of insurance employees voluntarily participating in disaster recovery that does not necessarily involve their regular job duties and that each employee understands the importance of providing assistance as needed. Procedure Should the event warrant, each division would be asked to provide volunteers. A specific number of employees will be needed from each division. Initially, a total of 10 (ten) employees will be identified and trained. The number will be calculated on a pro rata basis by division. Employees will be asked to volunteer for not more than one week at a time, unless requested by the Director. Employees who desire to volunteer should advise their supervisor of their willingness to volunteer. Divisions will recruit, approve and forward to the Director a list of current volunteers. Employees that volunteer should provide their name, division, home and office phone numbers as well as cellular and beeper numbers, if applicable. Volunteers will accrue comp leave credits. Volunteers will be in a pay status while traveling. Employees will be notified as soon as the department of insurance has been advised by the State Emergency Operations Center (SEOC) of the need for volunteers. (Often the notice is less than 24 hours.) Volunteers will be briefed on job assignments, destination, room accommodations, mode of travel and travel expenses before departure. Every effort will be made at the time of assignment to accommodate a volunteer’s request to work with a particular individual, location, or job assignment. Volunteers are advised of the need for having a personal credit card to use for disaster travel. If the employee does not have a personal credit card to use for travel expenses, the volunteer will notify the Director of this, so that arrangements may be made. As per the Comptroller General, a direct bill account can only cover the room rate and taxes for volunteers in the field. Direct bill hotel rooms will not cover the cost for personal telephone calls, etc. All volunteers will be required to take the homeowners insurance training course. Volunteer employees must submit travel and reimbursement vouchers within 10 days of their return from the field. Volunteers will be recognized and commended for their response to the needs of disaster victims.

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Introduction The department of insurance is committed to assisting with the insurance needs of the residents of the State of South Carolina. This becomes especially important when a natural disaster strikes. Services to citizens are initiated in several ways, by many divisions within the department. When warranted by the Director, specially trained volunteers from the department are deployed to the disaster location. These volunteers work directly with disaster victims assisting with insurance claims in FEMA-sponsored Disaster Recovery Centers, or providing outreach by traveling into the damaged areas to assist. The Individual Licensing Department within the Division of Administration will monitor and regulate unlicensed adjuster and agent activity. As the South Carolina Department of Insurance does not currently have a Fraud Investigation Division, department volunteers are requested to report all suspect activities to the Office of General Counsel, within the South Carolina Department of Insurance. The Office of General Counsel will alert the Attorney General’s Office and the Office of Consumer Affairs to these suspicious activities. The Division of Consumer Services’ toll free number will be continuously manned to respond to telephone requests for assistance. The Division of Financial Services will monitor and work with affected insurance companies to insure that claims are processed expeditiously and coverage issues are adequately addressed. The Office of the Director provides direction and support to the department employees (volunteers) who are assisting victims of the disaster. The Legal Department within the Division of Financial Services prepares to assist with volunteers. This department also prepares and pursues legal courses in the area of enforcement and rule drafting. The following identifies the operating procedures that are implemented by each division in the event of a disaster. (Note to Reader: Contact the Director’s Office for operating procedures.)

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Volunteers For Disaster Assistance For Natural Disasters

Employee Contact Notice Time Name Numbers Required (___) ___-____ (h) 4 hours

(___) ___-____ (w)

(___) ___-____ (h) Immediate Dispatch*

(___) ___-____ (w)

(___) ___-____ (w) 2 hours

(___) ___-____ (h)

(___) ___-____ (cell)

(___) ___-____ (w) 2 hours

(___) ___-____ (h)

(___) ___-____ (car)

(___) ___-____ (h)

(___) ___-____ (w)

(___) ___-____ (h) 2 hours

(___) ___-____ (w)

(___) ___-____ (h) Immediate Dispatch

(___) ___-____ (w)

(___) ___-____ (w) 30 minutes

(___) ___-____ (h)

(___) ___-____ (w) 24 hours

(___) ___-____ (h) (Thursday–Sunday)

(___) ___-____ (w) Immediate Dispatch

(___) ___-____ (h)

_________________

*24 years experience as Property Adjuster in the private sector

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Appendix 4B: Florida’s Disaster Response Volunteer Statement

Volunteer Statement Statement of Policy The volunteering by department of insurance employees to work during and after a disaster is critical to meeting our responsibilities as a major disaster response and recovery agency. The department places a tremendous value on sacrifices made by volunteers, supervisors and managers who not only accommodate, but also encourage employees to volunteer. While insurance knowledge is preferable, employees with the willingness to learn and assist consumers are welcome to volunteer. In the event sufficient employees do not volunteer during and after a disaster, employees may be temporarily reassigned to perform disaster recovery duties. Purpose To articulate the importance of the department of insurance employees voluntarily participating in disaster recovery that does not involve their regular job duties and that each employee understands the importance of providing assistance as needed. Procedure Each division will be asked to provide volunteers. A specific number of employees will be needed from each division. A total of 75 employees will be identified and trained as the initial Volunteer Pool. Employees will be asked to volunteer for not more than one week at a time, unless the department of insurance’s Emergency Coordinating Officer (ECO) makes a specific request. Employees who desire to volunteer should advise their supervisor of their willingness to volunteer. Divisions will recruit, approve and forward to the ECO a list of current volunteers. Employees should provide their name, division, bureau and section and their home and office phone numbers, cellular and beeper number, if applicable, and T-shirt size. “Included” volunteers may elect accrual of comp leave credits on a time and a half basis in lieu of cash payment for overtime worked during the 40-hour work week, or extended period by law enforcement. (See addendum) “Excluded” volunteers may elect cash payment on an hour-for-hour basis in lieu of comp leave credits for overtime worked during the month. (See addendum) Volunteers will be in a pay status while traveling. Employees will be notified as soon as the Emergency Operations Center (EOC) has advised the department of insurance of the need for volunteers. (Often the notice is less than 24 hours.) Volunteers will be briefed on job assignments, employee safety, destination, room accommodations, mode of travel and travel expenses before departure. Every effort will be made at the time of assignment to accommodate a volunteer’s request to work with a particular individual, location, or job assignment. Volunteers are advised of the need for having a personal credit card to use for disaster travel. If the employee does not have a personal credit card to use for travel expenses, a cash advance for expenses can be arranged prior to departure. All volunteers will be required to take the homeowners insurance training course, if necessary. Volunteers will be recognized and commended for their response to the needs of disaster victims.

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Introduction The department of insurance is committed to assisting with the insurance needs of the residents of the State of Florida. This becomes especially important when a natural disaster strikes. Services to citizens are initiated in several ways, by many parts of the department. Direct services to insurance policyholders are initiated immediately through a First Response Program, which activates a Consumer Services Field Office to quickly assess the scope of damage and begin to provide services at the disaster location. When needed, specially trained volunteers from the department of insurance in Tallahassee are deployed to the disaster location. These volunteers work directly with disaster victims assisting with insurance claims in FEMA-sponsored Disaster Recovery Centers, or providing outreach by traveling into the damaged areas to assist. In addition to responsibilities specifically assigned to each division, all divisions will be responsible for staffing department volunteer efforts. The level of participation will be ultimately determined by the severity of the disaster. The Division of Fire Marshal is mobilized and becomes part of the state emergency management system by taking on the role of lead agency for Emergency Support Functions (ESF) 4 Fire Services and 9.Search and Rescue. The Division of Agents & Agencies Services and the Division of Insurance Fraud send investigators to the disaster location to monitor and regulate unlicensed adjuster and agent activity. The Division of Fraud provides law enforcement assistance through the activation of its Emergency Response Teams (ERT) working closely with investigators from Agent and Agency Services and also provides security for the department volunteers in the damage areas. The Division of Consumer Services’ hotline in Tallahassee will be continuously manned to respond to telephone requests for assistance. The Division of Insurer Services mobilizes to work with affected insurance companies to insure that claims are processed expeditiously and coverage issues are adequately addressed. The Division of Administration mobilizes to provide specialized support to the department employees who are assisting victims of the disaster. The Legal Division prepares to assist with volunteers, and activates its Legal Team that prepares and pursues legal courses in the area of enforcement and rule drafting. The Division of Treasury, Rehabilitation & Liquidation, and Risk Management continue day-to-day operations and provide volunteers to travel to the damage area if needed. The Office of Information Services will assure that appropriate network, mainframe, desktop and telecommunications systems and resources will be available to support the department’s required response to any declared emergency situation. The following identifies the operating procedures that are implemented by each Division in the event of a disaster. (Note to Reader: See Appendix 6A: Florida’s Disaster Response Plan for the operating procedures.)

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Appendix 5: Florida’s Emergency Adjuster Licensing Regulation

Florida Regulations Florida Administrative Code

Title 4. -- Department of Insurance Chapter 4-220 -- Adjusters

FAC Rule 4-220.001 Pre-qualification and licensure of emergency adjusters (1) Purpose. This rule sets forth department policy and procedure for licensure of

emergency adjusters under Section 626.874, Florida Statutes. (2) Scope. Each emergency is unique and the terms, conditions, and other provisions of

emergency licensure for particular emergencies must often be tailored by emergency rule to the scope and nature of the particular emergency. This rule sets out what are essentially default licensure provisions which are effective for emergency licensure unless and to the extent the Department issues emergency rules modifying, supplementing, or replacing this rule. Where not expressly modified or replaced by emergency rule regarding a particular emergency, the provisions of this rule shall apply.

(3) Definitions. For purposes of this rule, the following definitions shall apply.

(a) “Department” means the Florida Department of Insurance. (b) “Licensed adjuster” and similar terms, refer to and include only persons

actually currently licensed in good standing by this Department as a public adjuster, company adjuster, or independent adjuster, whether the licensure be permanent resident licensure, or emergency licensure pursuant to this rule, and whether limited licensure or unlimited licensure. The terms do not include persons licensed as an adjuster or public adjuster by states other than the State of Florida.

(c) “Emergency” and “Catastrophe.” These two terms as used in section 626.874,

Florida Statutes, are synonymous, and no separate treatment is afforded catastrophe over emergency adjusters.

(d) “Emergency adjuster” when used in this rule without further specification,

includes emergency company adjusters, emergency independent adjusters, and emergency public adjusters.

(e) “Public adjuster” when used in this rule without further specification,

includes both permanent resident licensed public adjusters and emergency public adjusters.

(f) “Unlicensed persons” as used in this rule means and refers to persons who

are not actually currently licensed in good standing by this department as an adjuster, whether the licensure be permanent resident licensure or emergency licensure pursuant to this rule.

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(4) General Provisions Applicable to All Emergency Adjusters.

(a) Declaration of Emergency; Determination that Emergency Exists.

1. The Department does not issue proclamations or other formal declarations of emergency. Instead, any person believing that an emergency exists and desiring licensure under Section 626.874, Florida Statutes, shall apply or cause application to be made to the Department for such licensure.

2. For purposes of Section 626.874, Florida Statutes, an emergency exists

when, due to a specific, infrequent, and sudden natural or manmade disaster or phenomenon, there have arisen losses to property in Florida that are covered by insurance, and the losses are so numerous and severe that resolution of claims related to such covered property losses will not occur expeditiously without the licensing of emergency adjusters due to the magnitude of the catastrophic damage.

3. A failure of claims to be resolved expeditiously shall exist upon an

insurer’s filing with the Department a written statement that one of the following conditions exists:

a. The insurer expects to incur at least 500 claims as a result of

the event; or b. The magnitude of the event is expected to generate twice the

mean number of claims for one month for the affected area.

4. Requests for emergency adjuster licensure as an independent adjuster must be accompanied by the same statement from an insurer who requires such services.

5. If the Department determines that an emergency exists, public

adjusters seeking emergency licensure shall upon request be granted licensure pursuant to the provisions of this rule.

(b) Licenses Valid for 180 Days.

1. Emergency adjuster licenses are valid for 180 days from the date of issuance of the emergency license, unless a shorter period of time is specified in the license as issued. Because emergency licensure is an extraordinary deviation from regular licensing procedures, it is Department policy to specify, as the duration of emergency licensure, the shortest possible time in each particular emergency.

2. The Department shall grant an extension of emergency licensure if the

conditions set forth in (4)(a)2. of this rule still exist. Each extension will last for a period of up to an additional 180 days.

a. To apply for an extension of licensure as an emergency company

or independent adjuster, the licensee shall execute Form DI4-

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396E, “Application for Extension of License and Appointment as an Emergency Adjuster,” rev. 10/95, which is hereby adopted and incorporated by reference, and shall submit to the Department the applicable fee, as specified in Form DI4-396E, for each extension.

b. To apply for an extension of licensure as an emergency public

adjuster the licensee shall execute Form DI4-AAS-1E, “Application for Extension of License and Appointment as an Emergency Public Adjuster,” rev. 10/95, which is hereby adopted and incorporated by reference, and shall submit the fee specified in Form DI4-AAS-1E, for each extension.

c. These forms may be obtained at the Bureau of Licensing, 200 E.

Gaines Street, Tallahassee, Florida 32399-0319.

d. Only the licensure type and class which the licensee holds at the time of application for extension may be extended.

(c) “Temporary Licenses.” The provisions of Section 626.872, Florida Statutes,

regarding “Temporary Licenses” are not applicable to licensing persons temporarily for catastrophe or emergency situations.

(d) Emergency-Related Losses Only. Licensure as an emergency adjuster may be

used only for adjustment of losses directly resulting from the emergency regarding which the license was issued.

(e) Natural Persons Only. The Department issues emergency adjuster licenses

only to natural persons. (f) Address For Department. Unless a different address is specified herein, any

notice or other item to be provided to the Department, shall be addressed as follows: Bureau of Agent/Adjuster Licensing, Florida Department of Insurance, 200 East Gaines Street, Tallahassee, FL 32399-0319. If the communication is from or on behalf of a licensee, it shall not be deemed effectively received unless it shows the licensee’s full name, license number, address, and phone number.

(g) Administrative Jurisdiction. By applying for pre-qualification determination

or licensure as an emergency adjuster the applicant agrees that:

1. The applicant is subject to all the disciplinary provisions and penalties of the Florida Insurance Code and the administrative procedures set forth in the Florida Statutes for the routine processing of such charges;

2. Jurisdiction for acts committed prior to licensure or while licensed

continues after the emergency licensure expires or is terminated; 3. If after the licensure expires or is terminated, the Department has

reason to believe there was a violation of any provision of the Florida Insurance Code by the former licensee while licensed, the Department is not precluded from filing administrative action against the former

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licensee, and from serving the charges by certified mail to the licensee, or by publication of notice of action in the legal notices section of a newspaper of general circulation in or near the city or county of permanent residence or place of business as shown on the licensee’s application for emergency licensure if certified mail service is unsuccessful;

4. The former licensee will respond to and defend the charges in Florida,

or be defaulted; 5. The former licensee will not assert lack of jurisdiction; and 6. The former licensee believes that the preceding provisions satisfy

minimum due process requirements of all state and federal constitutions.

(h) Civil Jurisdiction; Service of Process. By the act of applying for pre-

qualification determination or licensure as emergency public adjuster, the applicant irrevocably:

1. Agrees and submits to the jurisdiction of the courts of Florida

concerning civil liability for all acts in any way related to the licensee’s activities under licensure in Florida;

2. Designates the Florida Treasurer and Commissioner of Insurance as

the applicant’s agent for service of all process in any way related to the applicant’s activities licensed as an emergency public adjuster; and

3. Agrees that these provisions shall survive the expiration or termination

of pre-qualification or licensure. (5) Emergency Company and Independent Adjusters. The provisions of this subsection

apply only to emergency company and emergency independent adjusters, and not to licensure of emergency public adjusters.

(a) All Florida-licensed insurers, independent adjusters, and general lines

agents, shall use the following procedures to utilize emergency company or independent adjusters. The entities or persons listed in the preceding sentence may immediately and without advance paperwork to this Department, engage and cause commencement of catastrophe adjusting work for themselves, by any persons, whether on their staff, or hired by them, or engaged by them as independent contractors or as employees of a contractor engaged by them, which persons they determine to be qualified to do such adjusting work, and even though the person is not currently licensed as an adjuster in Florida. Within 30 calendar days after adjusting work has begun, the appropriate entity official must execute and submit to the Department Form DI4-396, “Application for License and Appointment as a Catastrophe or Emergency Adjuster,” rev. 7/94, which is hereby adopted and incorporated by reference, and shall attach a check for applicable fee per applicant, as specified in Form DI4-396, payable to the Department of Insurance. Form DI4-396 is available at all Department consumer service offices or from Department headquarters. The application and check shall be submitted to:

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Bureau of Licensing, P.O. Box 6000, Tallahassee, FL 32314-6000, or by overnight courier to: Bureau of Licensing, 200 East Gaines Street, Tallahassee, FL 32399-0319. One check may be used to pay the fees for multiple applications submitted together.

(b) Within 3 days of when an emergency adjuster begins work, the insurance

company, independent adjuster, or general lines agent that is using the emergency adjuster must fax to the Bureau of Licensing the name of the emergency adjuster and his/her social security number. The fax must be on the letterhead of the insurance company, general lines agent, or independent adjuster/firm, and shall include the name and phone number of the contact person regarding emergency adjuster licensing. Contact should be made with the Department for the appropriate fax numbers.

(c) The insurance company representative, general lines agent, or independent

adjuster who signs Form DI4-396 to certify that the applicant is qualified (referred to herein as the “certifier”), thereby appoints the applicant to represent that company, agent, or independent adjuster; and once the license is issued, the certifier is bound by the acts of the applicant as in the case of any regular licensed (non-Temporary or non-Catastrophic) adjuster licensed pursuant to Chapter 626, Florida Statutes, appointed by that company, agent, or independent adjuster. Such responsibility continues until such time as said certifier shall notify the Department in writing that the certifier desires to terminate the certification, at which time the emergency license is cancelled automatically, until such time as the applicant can obtain another certifier.

(d) The insurer, general lines agent, or independent adjuster who certifies to the

Department that the applicant is qualified, is responsible for assuring, by due diligence inquiry, that the applicant is in fact qualified to adjust claims and is of good and honest character.

(e) There is an affirmative duty on the insurance company, general lines agent,

or independent adjuster signing Form DI4-396, to provide continuing and significant supervision to the applicant after licensure.

(f) Nonresident Company Adjusters. Persons employed by insurers and licensed

by the Department as non-resident company adjusters may temporarily come into Florida and work out of Florida offices as emergency adjusters for their employing insurance company without further licensure from the Department, for 180 days or such shorter time as the Department may by emergency rule specify as the maximum duration of emergency licensure for that particular emergency, and will not be deemed to have a Florida office such as would disqualify them from holding non-resident licensure or be held violative of their non-resident license status; provided, their employing insurance company shall before allowing such persons to adjust emergency losses while physically in Florida, provide the Department with a listing of the names and adjuster license numbers of all such persons, and shall obtain from the Department written acknowledgment that an emergency exists, specifying the emergency.

(g) Application for Emergency Adjuster Licensure as a Company or Independent

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Adjuster. Application for licensure as an Emergency Adjuster shall be made on Form DI4-396, “Application for Licensure and Appointment as Emergency Adjuster,” rev. 10/95, which is hereby adopted and incorporated by reference.

(6) Emergency Public Adjusters: General Provisions. This subsection pertains only to

licensure of emergency public adjusters.

(a) Advance Approval Required.

1. No person may commence work as an emergency public adjuster until notified in writing by the Department that the Department:

a. has received an application and made an affirmative pre-

qualification determination and issued a letter so indicating, or b. has been approved for licensure if no pre-qualification

determination was requested in advance.

2. If the pre-qualification method is used, the subject of the pre-qualification must request licensure pursuant to subparagraph (7)(b) of this rule in order to commence work.

(b) Background Checking; Grounds for Denial. As to all applications for licensure

as an emergency public adjuster, the Department shall conduct such background inquiry as is necessary to determine the applicant’s fitness and character. Adverse information noted in any area will be grounds for denial of application. The inquiry is limited to:

1. Inquiry of state or federal regulatory authorities in other states where

the applicant has resided or done business; 2. Checking references provided; 3. Inquiry of criminal databases and law enforcement authorities; and 4. Checking for judgments and other adverse credit references.

(c) Bond Required. No person will be licensed as an emergency public adjuster

unless the applicant has supplied to the Department the $5,000 bond required by Section 626.865(2), Florida Statutes. Applications for licensure will be received and preliminarily processed without the bond, but no licensure shall be issued until the bond is received in good and proper form.

(d) Policy Regarding Licensing Threshold. It is Department policy and finding

that a substantially higher threshold of certainty regarding fitness and character is appropriate and required for licensure as an emergency public adjuster, as compared to licensure as an emergency company or independent adjuster. This is because if a company or independent adjuster proves dishonest or incompetent, there is generally a regulated insurance company that may be required to make good that adjuster’s misconduct. However, regarding a public adjuster, there is no such safeguard for consumers.

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(e) Records To Be Kept.

1. All emergency public adjusters shall at all times while licensed and for 30 days thereafter maintain in Florida an office and keep their records or copies of all records relating to all Florida losses being adjusted or previously adjusted under said emergency licensure. All emergency public adjusters licensed under this rule shall designate their Florida office location to the Department within 72 hours after becoming licensed, and shall notify the Department in writing within 24 hours of any change in said office location. Failure to designate such an office to timely update the Department as to its location is grounds for immediate termination of licensure. The address of this office shall appear on all contracts, literature, etc., used by the public adjuster. This office shall be open and staffed at least six hours of every day, between the hours of 8 AM and 5 PM, Monday through Friday, public holidays excluded.

2. The records and offices of all emergency public adjusters shall be

subject to inspection by the Department without notice at any time.

(f) Advertising. All emergency public adjusters are strictly prohibited from advertising. Advertising means promotions, statements of availability, qualifications, and other similar statements, appearing on or in television, radio, newspapers, or magazines; and flyers, brochures, adhesive stickers affixed to any structure showing the adjusters name, address, phone number, and other similar information. Emergency public adjusters shall not use the services of any person or firm, who advertises for the emergency public adjuster, or who is directly or indirectly compensated for referring potential clients to the emergency public adjuster. The following do not constitute prohibited advertising:

1. The emergency public adjuster personally handing to any claimant or

potential claimant brochures or other descriptive materials as to the public adjusting function, the public adjuster’s qualifications, fees, and other similar information.

2. Solicitation (as defined herein) of work, by the emergency public

adjuster in person, wherein the solicitation is made to the loss claimant, and subject to other limitations in this rule concerning solicitation; provided, limited emergency public adjusters may not solicit work on any premises which are not clearly commercial premises.

(g) Advising Claimants and Others. The advising of insureds, claimants, potential

claimants, or other persons as to the role, value, or usefulness of public adjusters is deemed to be a material part of the business of public adjusting, and therefore requires licensure as a public adjuster under the laws of Florida and this rule, and may be engaged in only by persons licensed by this Department as permanent or emergency public adjusters. Unlicensed persons may not engage in such activity even under the supervision of a licensed public adjuster.

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(h) Certain Contracts Unenforceable. It is Department policy that contracts engaging the services of a public adjuster, entered into in violation of any provisions of this rule or any emergency rule, shall be declared unenforceable on the part of any public adjuster, as violative of public policy.

(i) Photo ID Required. No emergency public adjuster, once approved for

licensure by the Department, shall be licensed or commence work, until obtaining from the Department a photo identification card, paying in connection therewith the applicable fee as specified in Forms DI4-AAS-1 and DI4-AAS-3.

(7) Emergency Public Adjuster Applicants.

(a) To apply for licensure as an emergency public adjuster, the applicant shall execute Form DI4-AAS-1, “Application for License and Appointment as an Emergency Public Adjuster,” rev. 3/96 which is hereby adopted and incorporated by reference, and shall submit the fee specified in Form DI4-AAS-1.

(b) To apply for pre-qualification determination for licensure as an emergency

public adjuster, the applicant shall execute Form DI4-1199 “Application for Pre-qualification for Licensure as An Emergency Public Adjuster” Rev. 6/96 which is hereby adopted and incorporated by reference, and shall submit the fee specified in Form DI4-1199.

(c) 1. Pre-Qualification Determination is not required for licensure an

Emergency Public Adjuster. However, persons are urged to pre-qualify prior to a disaster in order to expedite the emergency licensure process.

2. Pre-Qualification Determination requests will be considered between

January 1 and April 30 of each year. 3. Any Pre-Qualification Determination made will be valid for a period of

two years.

(d) 1. Persons may apply for pre-qualification determination or licensure as an emergency public adjuster if they are currently licensed as a public adjuster in their home state for the type or kinds of insurance for which they intend to adjust claims in this state. 2. Applicants must be in good standing in all states where so licensed. 3. Evidence of good standing must be in the form of a current original

Letter of Certification from the applicable state insurance department(s). The letter shall not be older than 90 days when submitted in connection with the application for licensure or pre-qualification determination.

(e) The application form must be signed by three persons:

1. The person to receive emergency licensure;

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2. A regularly licensed (non-Temporary, non-Catastrophic) public

adjuster who will supervise the emergency public adjuster (the supervising public adjuster); and

3. One of the following persons (the certifying person):

a. an officer of a Florida-licensed or admitted insurance company; or

b. a Florida-licensed independent adjuster in good standing; or c. a Florida-licensed resident general lines insurance agent in good

standing.

(f) The application form may be obtained at all Department consumer service offices or from Department headquarters in Tallahassee and must be sent, with a check for the applicable fee, as specified in Form DI4-AAS-1 or DI4-1199, to: Department of Insurance, P.O. Box 6000, Tallahassee, FL 32314-6000; or the applicant may contact the Department for an address to use of overnight courier service.

(g) Supervising Public Adjuster. Licensees who are licensed under this

subsection must be supervised by a regularly licensed (non-Temporary, non-Catastrophic) resident public adjuster in good standing while they are performing work under their emergency public adjuster licensure. The emergency licensure automatically terminates if the supervising public adjuster ceases to supervise the emergency adjuster. The emergency adjuster will be deemed to be an appointee of the supervising public adjuster. The supervising public adjuster is under an affirmative duty to provide continuing, significant supervision to the emergency public adjuster whose application he/she signed. The supervising public adjuster may prospectively terminate this duty at any time by notifying the Department by certified mail, return receipt requested, or by overnight courier, that he/she will no longer be supervising the emergency public adjuster as of a date specified in said letter. Such a notice is not effective until actually received by the Department.

Specific Authority.-- 624.308 FS. Law Implemented.-- 624.321, 624.501, 626.112(1), 626.521, 626.601, 626.854, 626.865(2), 626.870, 626.874, FS. History New 2-25-93; amended 8-18-94; 1-7-97; 10-20-97. Cross Reference 626.874; 626.872; 626.865; 624.308; 624.501; 626.112; 626.171; 626.521; 626.601; 626.854; 626.870; 626.878 Date New 1993 Date Amended 1994; 1997; 1997 Due Date 30 days after; 3 days after; 72 hours after; 24 hours after

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Appendix 6A: Florida Department of Insurance Sample Disaster Response Plan

Florida Department of Insurance

Disaster Response Coordination Plan

2001

(Revised May 2001)

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Table of Contents

Purpose 95 Level Definitions ............................................................................................................ 95 Volunteer Statement ...................................................................................................... 96 Introduction................................................................................................................... 97 Office of The Chief of Staff .............................................................................................. 98 Division of Administration – Emergency Coordinating Officer.......................................... 99 Division of Administration.............................................................................................103 Office of Budget and Financial Services .........................................................................105 Office of Policy Analysis and Intergovernmental Relations ..............................................107 Office Of Cabinet Affairs ................................................................................................108 Division of Agents & Agencies Services ..........................................................................109 Division of Consumer Services ......................................................................................117 Division of Insurance Fraud ..........................................................................................121 Division of Legal Services..................................................................................................128 Division Of Rehabilitation And Liquidation ..........................................................................130 Division of Risk Management ........................................................................................133 Division of Treasury ......................................................................................................136 Office of Communications and Public Affairs .................................................................140 Budget and Strategic Planning ......................................................................................142 Disaster Cellular Phone Pool .........................................................................................144 Addendum 144 Standard Telephone Message ........................................................................................145 Hurricane Telephone Message .......................................................................................145 Post Disaster Continuation ...........................................................................................146 Adjuster SERT badges...................................................................................................147 Office Closing Procedure ...............................................................................................148 Leave Provisions For Office Closings ..............................................................................149 Extra Hours Worked–Excluded Employees ....................................................................150 Extra Hours Worked–Effect on Annual Leave Used ........................................................151 Career Service Classes And Overtime ............................................................................152 Overtime For Included Law Enforcement Employees......................................................156 Review and Improvements.............................................................................................157 Emergency Response Organization Chart ......................................................................158

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Purpose The purpose of this manual is to provide procedures that will assure a well-coordinated response to any disaster. The manual sets forth the various actions to be taken by those involved in the response. It sets forth a reporting procedure to ensure all levels of management are aware of the status of the Department’s response. The response processes have been designed to be implemented based on the Chief of Staff’s determination of the Department’s level of participation. Level Definitions Activation levels mirror the definitions used by the Department of Community Affairs, Division of Emergency Management for activating. Level two is Preparation. The Department stays in this level year round in preparation for any disaster. Level one is activation immediately preceding or following an event. The activation is based on the severity of the event and the anticipated involvement of the Department.

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Volunteer Statement Statement of Policy The volunteering by DOI employees to work during and after a disaster is critical to meeting our responsibilities as a major disaster response and recovery agency. The Department places a tremendous value on sacrifices made by volunteers, supervisors and managers who not only accommodate, but also encourage employees to volunteer. While insurance knowledge is preferable, employees with the willingness to learn and assist consumers are welcome to volunteer. In the event sufficient employees do not volunteer during and after a disaster, employees may be temporarily reassigned to perform disaster recovery duties. Purpose To articulate the importance of DOI employees voluntarily participating in disaster recovery that does not involve their regular job duties and that each employee understands the importance of providing assistance as needed. Procedure Each division will be asked to provide volunteers. A specific number of employees will be needed from each division. A total of 75 employees will be identified and trained as the initial Volunteer Pool. Employees will be asked to volunteer for not more than one week at a time, unless the DOI Emergency Coordinating Officer makes a specific request. Employees who desire to volunteer should advise their supervisor of their willingness to volunteer. Divisions will recruit, approve and forward to the ECO a list of current volunteers. Employees should provide their name, division, bureau and section and their home and office phone numbers, cellular and beeper number, if applicable, and T-shirt size. “Included” volunteers may elect accrual of comp leave credits on a time and a half basis in lieu of cash payment for overtime worked during the 40-hour work week, or extended period by law enforcement. (See addendum.) “Excluded” volunteers may elect cash payment on an hour-for-hour basis in lieu of comp leave credits for overtime worked during the month. (See addendum.) Volunteers will be in a pay status while traveling. Employees will be notified as soon as the Emergency Operations Center (EOC) has advised DOI of the need for volunteers. (Often the notice is less than 24 hours.) Volunteers will be briefed on job assignments, employee safety, destination, room accommodations, mode of travel and travel expenses before departure. Every effort will be made at the time of assignment to accommodate a volunteer’s request to work with a particular individual, location, or job assignment. Volunteers are advised of the need for having a personal credit card to use for disaster travel. If the employee does not have a personal credit card to use for travel expenses, a cash advance for expenses can be arranged prior to departure. All volunteers will be required to take the homeowners insurance training course, if necessary. Volunteers will be recognized and commended for their response to the needs of disaster victims.

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Introduction The Department of Insurance is committed to assisting with the insurance needs of the residents of the State of Florida. This becomes especially important when a natural disaster strikes. Services to citizens are initiated in several ways, by many parts of the department. Direct services to insurance policy holders are initiated immediately through a First Response Program, which activates a Consumer Services field office to quickly assess the scope of damage and begin to provide services at the disaster location. When needed, specially trained volunteers from the Department in Tallahassee are deployed to the disaster location. These volunteers work directly with disaster victims assisting with insurance claims in FEMA sponsored Disaster Recovery Centers, or providing outreach by traveling into the damaged areas to assist. In addition to responsibilities specifically assigned to each Division, all Divisions will be responsible for staffing Department volunteer efforts. The level of participation will be ultimately determined by the severity of the disaster. The Division of Fire Marshal is mobilized and becomes part of the state emergency management system by taking on the role of lead agency for Emergency Support Functions (ESF) 4 Fire Services and 9.Search and Rescue. The Division of Agents & Agencies Services and the Division of Insurance Fraud send investigators to the disaster location to monitor and regulate unlicensed adjuster and agent activity. The Division of Fraud provides law enforcement assistance through the activation of its Emergency Response Teams (ERT) working closely with investigators from Agent and Agency Services and also provides security for the department volunteers in the damage areas. The Division of Consumer Services hotline in Tallahassee will be continuously manned to respond to telephone request for assistance. The Division of Insurer Services mobilizes to work with affected insurance companies to insure that claims are processed expeditiously and coverage issues are adequately addressed. The Division of Administration mobilizes to provide specialized support to the department employees who are assisting victims of the disaster. The Legal Division prepares to assist with volunteers, and activates its Legal Team that prepares and pursues legal courses in the area of enforcement and rule drafting. The Division of Treasury, Rehabilitation & Liquidation, and Risk Management continue day-to-day operations and provide volunteers to travel to the damage area if needed. The Office of Information Services will assure that appropriate network, mainframe, desktop and telecommunications systems and resources will be available to support the Department’s required response to any declared emergency situation. The following identifies the operating procedures that are implemented by each Division in the event of a disaster.

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Office of the Chief of Staff Disaster Response Plan

DOI TIME FRAME

Action Person Accountable

Activation (Level 1)

Disaster Imminent In Progress Or Has Occurred

Approve initiation of new activation level or cancellation of an activation level upon notification by ECO of FEMA or EOC action.

Receive immediate feedback on level of disaster, destruction and required Department resources. Approve number of volunteers from Tallahassee to be deployed.

Approve Field/Service Offices recommended for designation as First Responders.

Approve Deputy Insurance Commissioner, Division Directors, and ECO to commence deployment of appropriate Department staff.

Attend briefings among Chief of Staff, Deputy Insurance Commissioner, primary field manager, ECO, and Division Directors.

Dispatch senior staff, if necessary, to the disaster site to perform liaison duties.

Approve staff assignments/activities for staff affected by the disaster or other impacts associated with the disaster.

Approve a Hurricane Emergency Recording on the phone lines when the Larson Building is closed.

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Division of Administration – Emergency Coordinating Officer

DOI Time Frame Action Person

Accountable Preparation (Level 2)

By June 1st

Continue thru entire year

Assure that adequate supplies are available for disaster teams and volunteers. Obtain annual update to Volunteer Disaster Manual from Consumer Services Division Disaster Coordinator. Update handouts for volunteers, order three-ring binders, T-shirts and other disaster volunteer supplies. Review orientation handbook. Update where necessary. Order and maintain a supply of magnetic signs “Florida Department of Insurance Disaster Recovery Team” for use on Department driven vehicles sent to recovery/outreach sites.

Update the fax and/or phone listings for the CAT directors/claims personnel, of the larger insurance companies with home owners/auto exposure in Florida

Recruit, identify and confirm an initial disaster team pool (Volunteer Pool) of at least 75 volunteers. Inventory strengths and weaknesses of team members and provide copy of inventory to Consumer Services Division Director. Offer training to volunteers (i.e. homeowners and auto courses).

Monitor the weather and remain alert for the possibility of weather changes that may strike the coast of Florida. Notify divisions when the Chief of Staff initiates or cancels a level.

After the initial volunteers are selected, determine if there are additional volunteers who will be available if needed.



Coordinate with the Department of Community Affairs (DCA), the Director and the Recovery Coordinator, Federal Emergency Management Agency (FEMA) and others to assure maximum efficiency and communication.

The ECO will obtain approval from the Chief of Staff for initiation of Level 1 and determination of any other necessary action. (Meetings, follow-up from the EOC, etc.). The ECO is the primary onsite staff person at the State EOC and is responsible for logistical coordination and deployment of volunteers from Tallahassee. The Fire Marshal duty officer will call the ECO immediately as the State EOC is activated. The ECO will activate and alert all Department of Insurance (DOI) personnel by placing an appropriate message on the Department Disaster Assistance Call processing number (922-3191) and/or e-mail.

If appropriate, the ECO will go to the EOC and check in with ESF 4 & 9 and recovery operations.

Depending on the level of disaster (or category of hurricane), it may be necessary for the ECO to alert volunteers of the possibility of the immediate future opening of Disaster Recovery Centers. Coordinate with the Department of Community Affairs (DCA), Federal Emergency Management Agency (FEMA) and others to assure maximum efficiency and communication.

99


Accountable The following 18 steps apply to the initial and all

subsequent volunteer deployments.

The ECO will coordinate with the Chief of Staff any EOC information that may assist or inform first responders sent out from Consumer Services Field Offices.

Volunteers are notified of the approximate activation date (if known), possible duration of stay, transportation, housing and food availability. In addition, volunteers are notified of the availability of advance travel funds and pre-payment of hotels where possible.

Notify the Offices of Personnel, and Support Services, regarding the possible use of volunteers to allow for their office planning.

Notify the Bureau of Financial and Support Services to plan and make arrangements (where necessary) for travel, hotels, rental cars and cash advances.

Notify the Office of Purchasing of the number of volunteers necessary and to anticipate the necessary purchases for such an undertaking.

Notify the Bureau of Personnel Management the number of volunteers necessary in order to prepare appropriate information for each of these individuals regarding overtime, workers’ compensation and other information.

Upon request for Department volunteers from the EOC or FEMA, the ECO will obtain approval from the Chief of Staff to deploy requested volunteers, contact Division Directors for names of volunteers to be deployed from the Volunteer Pool, notify the Director of Consumer Services of the deployment, and logistically coordinate the deployment.

As the decision for the Division of Consumer Services makes individual assignments, the Division will send the ECO the list of assignments. The EOC Recovery Office will be notified indicating name, assigned site, duties and responsibilities and experience of each volunteer. This is repeated as new volunteers are developed and assigned (who is replacing whom, etc.). On a weekly basis, a copy of the same list will be sent to the Bureau Chief of Personnel Management.

The Consumer Services Division Director will be notified which volunteers will be deployed so that Consumer Services can make work and geographic location assignments. The volunteers will be asked to report to the Larson Building or other appropriate gathering site, to receive appropriate orientation, instructions, handouts and travel information. From that site, the volunteers will proceed to their assigned areas and report to duty.

100


Accountable As volunteers are verified, individual assignments of

volunteers and field staff are made by the Division of Consumer Services and logistically coordinated by the ECO. Logistical coordination shall include responsibility for making travel arrangements, training of volunteers, cellular telephones, rental cars, travel advances, reproduction and distribution of training materials and Disaster Volunteer Manuals, ensuring that travel vouchers are processed, collecting timesheets, collecting Disaster Volunteer Manuals upon return of volunteers, or any other assignment determined by the Chief of Staff. Depending on insurance knowledge, supervisory and past disaster work site experience, work assignments are designated before the actual orientation. In the case of stationary Disaster Recovery Centers versus roving Outreach Programs, employees with insurance knowledge, supervisory and/or previous disaster volunteer experience are desired for outreach work.

Prior to the actual orientation meeting, sleeping accommodations, rental cars, and travel cash advances should be verified and confirmed.

Presenters and handouts should be identified and confirmed for volunteer orientation. T-shirts, cellular phones, laptop computers and any other items should be located, checked and available.

Once volunteers are assigned and dispatched to their work areas, a system of communications should be maintained on logistical issues.

Contact Recovery Coordinator at the SEOC, for preliminary information on possible recovery center sites (number, locations, FEMA–DOI volunteers needed). Prior to deployment, discuss recovery center logistics with SEOC (Amenities: air conditioning, bathrooms, phones, fax, etc.). Also inquire about preliminary discussions for outreach DOI volunteers needed. Arrange orientation with recovery personnel at EOC for both DOI and FEMA representatives.

If additional employees are needed for the Volunteer Pool, an electronic mail message is sent to all Tallahassee employees advising of the need for additional volunteers for the duration of the event. A separate request is to be sent to all Division Directors requesting volunteer recruitment assistance. Division Directors will then send the lists of additional employees to be added to the Volunteer Pool to the ECO. The Chief of Staff is to be notified if the Volunteer Pool is not of sufficient size to staff Department disaster recovery duties.

101

DOI Time

Frame Action Person Accountable

As teams of volunteers are developed, provided orientation and dispatched to Disaster Recovery Centers, additional relief volunteers need to be recruited, verified and prepared to replace those just sent, upon approval of the Chief of Staff. In addition, a site for orientation, all presenters and the necessary materials for their orientation must be prepared. If approved by the Chief of Staff, contact the Division of Rehabilitation and Liquidation to request volunteer assistance.

Appropriate recognition (e-mail to the returning volunteers and their supervisors, an appropriate mention in the employee newsletter, certificates of recognition and any other appropriate recognition) should be initiated when the volunteers return from the field.

Approve in writing all travel reimbursement requests for employees’ time spent on disaster relief.

*The ECO regularly meets with approximately 20 to 25 of the disaster/claims representatives of the companies with the larger exposures in Florida to mutually plan for activation of disaster plans for the benefit of policyholders.

*The ECO will contact by fax and/or phone the CAT directors/claims personnel, of the larger insurance companies with home owners/auto exposure in Florida (as requested).

102

Division of Administration Disaster Response Plan

DOI Time Frame


Preparation (Level 2)

By June 1st


Two members of the Larson Receptionist Staff will be identified to come to work in the event the Larson Building is closed and the phones need to be open.

Request list of volunteers and notify ECO of this information

The Facilities Management Consultant will update fax and/or phone listings for the landlords of all leased office space.

After the initial volunteers are selected, recruit additional volunteers who would be available if needed.

Alert the Bureau Response Team members. Ensure all material prescribed by the Bureau’s Disaster

Plan is on hand in sufficient quantities.

Prepare material needed for briefing of volunteers. The Facilities Management Consultant will contact by fax

or phone the landlords of leased office space in the affected areas to request advance notice of office closings



Reaffirm the two members of the Larson Receptionist staff who will come to work in the event the Larson Building is closed and the phones need to be open.

Recruit additional employees for the Volunteer Pool as necessitated by the severity of the event and requested by the ECO. See 1 & 2.

Upon notification of any office closings, the Chief of Staff, affected Division Directors and ECO will be notified by the Facilities Management Consultant.

1. Place all administrators within Support Services on notice of pending disaster.

2. Place all administrators within the Bureau of Personnel Management on notice of pending disaster.

Brief all volunteers on emergency time sheets and over-time options available prior to deployment.

Brief volunteers on emergency purchasing procedures. Purchasing After notification by the affected Division Director, modify

designated Purchasing Cards upon issuance of an Office of the Governor Executive Order, or when a state of emergency has been declared. Inform the Division Directors when complete.

Purchasing Card Administrator

Coordinate all support services for DOI employees and operations.

Continue to brief volunteers on emergency time sheets and over-time options available and other personnel issues prior to deployment.

Audit emergency/disaster time sheets and provide copies to staff in the Bureau of Financial and Support Services.

103

DOI Time

Frame Action Person

Accountable Continuation After

Disaster The Director’s Office will participate in any debriefing activities and disseminate any pertinent information.

Participate in debriefing activities and disseminate any pertinent information.

Purchasing

Upon cancellation of an office of the Governor Executive Order or state of emergency, restore to original configuration the designated Purchasing Cards. Notify Division Directors when completed.

Purchasing Card Administrator

104

Office of Budget and Financial Services Disaster Response Plan

DOI Time Frame



By June 1st

Continue Thru Entire Year

After the initial volunteers are selected, recruit additional volunteers from the Office of Budget and Financial Services, on an as needed basis.

Bureau of Financial Services

Review uniform procedures for the Office of Budget and Strategic Planning to be utilized in the event of a disaster.

Budget Director

Obtain Disaster Recovery Procedures relating to funding recovery from the Governor’s Office of Planning and Budgeting.

Budget Director

Attend disaster preparedness training provided by the State Emergency Operations Center.

Budget Director

Designate which budget staff will be responsible for monitoring the current situation and will assign responsibility in the event of activation and notify the Department’s Emergency Coordinating Officer (ECO) accordingly.

Budget Director


Place all administrators within the Bureau of Financial Services on notice of pending disaster.

Bureau of Financial Services

Upon the activation of the State Emergency Operations Center, schedule time to participate in the Emergency Support Functions #4 and #9 recovery operations in addition to monitoring the work flow at the Center between the Department of Community Affairs

Budget Director

Forward all updates, provided by the Department staff operating the EOC, to all budget staff.

Budget Director

Attend the Department of Insurance’s EOC, upon activation, to become acquainted with the process and work flow.

Budget Director

Notify the ECO that activation action steps have been activated.

Budget Director

Assign an employee to the State EOC, when necessary. Chief, Bureau of Financial Services and Budget Director

Continually brief DOI volunteers on the Department’s disaster travel procedures and provide travel advances as needed.

Finance and Accounting Director

Participate in scheduled conference calls with the Department of Community Affairs, State Budget Officers and Governor’s Office.

Chief, Bureau of Financial Services and Budget Director

Send e-mail to the Director of Budget and Financial Services and ECO with pertinent information obtained as a result of the conference calls.

Budget Director

105

DOI Time Frame


Notify the Department’s ECO of schedule for cost estimates as required by the Department of Community Affairs and the Executive Office of the Governor, Office of Planning and Budgeting.

Budget Director

Notify the Division of Risk Management, Chief, Bureau of Property

Budget Director

Financial and Risk Services, of schedule for cost estimates as required by the Department of Community Affairs, and the Executive Office of the Governor, Office of Planning and Budgeting.

Assist the Division of State Fire Marshal and other effected divisions in computing cost estimates.

Budget Director

Begin expense data collection process and coordinate with ECO and Budget Director for any additional funding requirements.


Coordinate with the Bureau of Financial Services in the collection and compilation of all disaster costs and provide this information to the Department of Community Affairs, Executive Office of the Governor, Office of Planning and Budgeting and Director of Budget and Financial Services

Budget Director

Coordinate with the Chief, Bureau of Financial Services and Chief, Bureau of Licensing, any emergency licensing activities


Continuation After Disaster

Participate in debriefing activities and disseminate any pertinent information.

Chief, Bureau of Financial Services

Continue expense data collection process and coordinate with ECO and Budget Director for any additional funding requirements.

Finance and Accounting Director Services and Budget Director

Prepare budget amendments for submission to the Office of Planning and Budgeting as needed.

Budget Director

Recruit additional employees for the Volunteer Pool as necessitated by the severity of the event and requested by the ECO.

Budget Director

Necessary action steps from Activation (Level 1) will continue.

Budget Director

106

Office of Policy Analysis and Intergovernmental Relations Disaster Response Plan

DOI Time Frame



By June 1st


Maintain fax and phone listings for all Legislators and Legislative Leadership

Director of Policy Analysis and Intergovernmental Relations

Request list of volunteers and notify ECO of this information.



Disaster Imminent in Progress or has Occurred

Contact Legislative leadership and affected Legislators by fax to provide information for their constituents and function as liaison on insurance issues related to disaster.


Recruit additional employees for the Volunteer Pool as necessitated by the severity of the event and requested by the ECO


107

Office of Cabinet Affairs Disaster Response Plan

DOI Time Frame



By June 1st


Request list of volunteers and notify ECO of this information.




108

Division of Agents & Agencies Services Disaster Response Coordination Plan

Division Disaster Coordinator (DDC) – Bureau Chief of Licensing (BCL) – Field Office Administrators – (FOA) Division Director (DD) – Bureau Chief of Investigation (BCI) – Division Disaster Operations Team – (DDOT) Assistant Division Director (ADD)– Division Contact Person (DCP) – Chief of Staff (COS)

DOI Time Frame



By June 1st Continue through Entire year

Establish a list of at least three (3) volunteers. Recruit additional employees for the Volunteer Pool as necessitated by the severity of the event and requested by the ECO.

Procedures for filing emergency rules, mobilizing staff to process applications for licensure and planning the movement of investigators to disaster sites for investigative activities are in effect and reviewed monthly.

Discussions with managers about selecting staff to travel to disaster areas through volunteer programs have been conducted and procedures are in place. Routinely review leave requests of staff carefully to assure adequate staff being on hand to meet needs.

Notify staff that does not have email of the number to be called to obtain information on an emergency.

The Bureau Chief of the Bureau of Agent & Agency Investigation will check with field office supervisors for proper location of disaster-related equipment. Monthly B-Mails are sent to Field Office Administrators to insure all disaster-related equipment is operational

The Division Disaster Coordinator will closely monitor all activities or reports from other DOI or state agencies, and keep management of Agents & Agencies Services apprised of reports, developments or activities. This person may, with the Division Director and Bureau Chiefs, attend departmental meetings regarding the disaster and report strategies, plans and/or positions of the Department to the Division’s Disaster Operations Team.

The Division Contact Person will act as a receiver and distributor of information regarding the Division’s operations to parties within the Department in the event the disaster is officially declared.

The Division Director will establish a Division Disaster Operations Team made up of the Division Disaster Coordinator, Division Director, Bureau Chief of the Bureau of Agent & Agency Licensing, the Bureau Chief of the Bureau of Agent & Agency Investigation, the administrators within these two (2) bureaus, and the Division Contact Person.

Develop Communication Trees Review Emergency Adjuster Licensure applications and

other related forms for appropriate inventory levels. This will be done in March and October. Adjustments will be made as necessary.

109

DOI Time Action Person Frame Accountable

Through coordination with the Bureau Office of Consumer Assistance—re-supply Consumer Service field offices with emergency adjuster licensure forms.

Agent and Agency Investigation Field Offices Field Office Administrators, FOA – Dayton Beach – Ft. Myers – Jacksonville – Largo – Miami – Orlando – Pensacola – Plantation – Tampa – West Palm Beach

Inspect all equipment (portable phones, copiers, laptop computers and printers) monthly and charge all batteries. Establish a list of volunteers. After the initial volunteers are selected, determine if there are additional volunteers who would be available if needed.

Field Office Administrators, FOA – Daytona Beach – Ft. Myers – Jacksonville – Largo – Miami – Orlando – Pensacola – Plantation – Tampa – West Palm Beach

Prior to, during and after a possible disaster situation, Field Office Administrators are to establish contact with and maintain at all times the whereabouts of the investigators under their supervision.


110


Field Office Administrators are to make contact with and obtain information from lodging providers in disaster prone areas on an ongoing basis.


Identify and notify investigators who may be asked to travel to disaster areas for investigative work.


When there is ample time prior to the approach and/or impact of a natural disaster (e.g. hurricane, tornado, flood, etc.), take necessary steps to safeguard Department property under their control (i.e. state cars, computer equipment, office equipment, and confidentiality and integrity of investigative files).


Inform Emergency Coordinating Officer (ECO) that Preparation steps have been completed



Upon the activation of the Emergency Operations Center, the Division Director and/or assigned staff will become acquainted with the process and work flow at the Center between the DCA and the DOI. (Coordinating with the ECO)

111


Initiate dialogue with the Division of Insurance Fraud for a fraud investigator to work with Agents & Agencies Services’ investigators for developing cases, strategies and procedures for arrest of unlicensed public adjusters.

Notify appropriate Bureau staff of activation, time and locations of meetings.

Receive and respond to inquiries from insurers, adjusting firms and others concerning the issuance of emergency adjuster licenses.

The Bureau of Agent and Agency Licensing and the Division of Consumer Services’ field offices will maintain copies of the latest Emergency Adjuster Licensure Forms, and provide the forms to interested persons or entities upon request.

Provide daily briefing reports to the Deputy Insurance Commissioner and Chief of Staff on requests/inquiries about emergency adjuster license issuance.

Notify managers of the need to implement emergency license procedures.

Make recommendations to managers on the need to promulgate emergency rules.

Implement the mechanics of receiving, processing and issuing emergency adjuster licenses.

Agent and Agency Investigation Field Offices Identify technology and other resources that may be

needed in disaster areas and put Field Office Administrators on notice for the possible need for the equipment.

Prepare computer equipment for impending disaster.** Field Office Administrators, FOA – Daytona Beach – Ft. Myers – Jacksonville – Largo – Miami – Orlando – Pensacola – Plantation – Tampa – West Palm Beach

112


In the case of an impending disaster, confirm lodging for task force personnel at or near the projected strike area 24 to 48 hours before landfall.


Inform ECO that activation action steps have been completed.

Establish an enhanced regulatory presence in the affected area where insured losses have occurred by putting in place emergency investigative teams (task force personnel) to discourage unlicensed and/or unscrupulous insurance representatives from taking advantage of the insured population.

Take immediate administrative action when necessary by gathering evidence of unlicensed adjuster solicitations/activities and refer the cases to the Division of Legal Services on an expedited basis.

Investigate reports of unlicensed adjuster activities and recommend to fraud investigators the arrest of persons involved in unlicensed adjusting activities.

Assist the Legal Division in immediate enactment of necessary emergency rules to accomplish the Division and Department mission.

Establish an emergency licensing team to respond to increased calls from insurance companies, independent adjusting firms, public adjusters and DOI personnel concerning licensing issues related to the disaster, as well as from insureds checking on the license and appointment status of adjusters with whom they may be dealing. This team would be responsible for receiving and faxing information, for mailing necessary licensure forms, and for processing emergency adjuster licensure applications.

Receive, review and approve applications for and affect the emergency licensure of qualified individuals to adjust losses pursuant to s. 626.859, Florida Statutes, and Rule Chapter 4-220.001.

Circulate list of emergency adjusters who have been licensed via fax method, to the Division Operations Team, the Bureau of Investigation, Division of Consumer Services and Division of Fraud. This listing refers to the names which companies may fax to the Department prior to the requirement that they formally submit the required paper application.

113


Provide necessary management or technical assistance and support to other areas of the Department as requested.

Agent and Agency Investigation Field Offices Staff is selected to participate in the Bureau’s initial and

subsequent site teams (Division volunteers and designated staff at the DRCs).


Move equipment, such as mobile telephones, pagers, etc., to disaster areas as needed.


Establish close coordination with the local DIF officer-in-charge and local law enforcement to evaluate the possibility of violations of Florida Statutes by unlicensed adjusters.


114


Remain in routine contact with Bureau and Division management to apprise them of adjuster activity and damage assessment information as needed.


Inform ECO that performance action steps have been activated.

Critical Action Steps from Activation (Level I) will continue

Continuation Disaster Has Occurred

Division-wide debriefing of returning staff/volunteers. DDC and the Division Disaster Operations Team – DDOT

Continuation After Disaster

Department-wide debriefing of returning volunteers.

Disseminate information collected. Report relevant statistics regarding emergency adjuster

requests received from insurers, independent firms and public adjusters.

Make recommendations, if any, regarding changes in emergency adjuster licensure procedures or other communications to affected regulated entities.

** All field offices must protect information technology resources in the event of impending weather or other emergency conditions. If the field office location becomes a potentially threatened area, the following precautions should be taken to ensure the protection of critical department data stored on personal computers: 1. If there is critical department data stored on the hard drive of a personal computer,

staff should immediately make a back-up of the data onto diskettes. 2. For identification purposes, make certain that each diskette is labeled with the unit

or DOI RPO number and office location. When leaving the office either take the diskettes, or mail them to the Help Desk for safe keeping. The address for the Help Desk is: DOI Help Desk, B45 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-4200.

3. If assistance is needed with making back-up diskettes, please call the Help Desk at Suncom 293-3190 or 850/413-3190.

115

If the office location is in a strike probability zone and the office is ordered to evacuate, the following precautions should be taken: 1. Immediately before leaving the office, unplug all computers and printers from the

wall plug. Modems, network cables, televisions and fax machines should also be disconnected. This includes the power jack and cable and/or antenna jack. This will provide protection for these devices should sudden power surges occur.

2. It is not necessary to move computers unless located near windows where they

could be damaged by flying objects. Moving computers should be the last measure taken if the office is in the direct path of the storm.

If you have any questions, contact the help desk either by e-mail or phone (Suncom 293-3190 or 850/413-3190).

116

Division of Consumer Services Disaster Response Coordination Plan Chief of Staff (COS) – Division Director (DD) – Emergency Coordinating Officer (ECO) – Purchasing Card Administrator (PCA) – Purchasing Division Disaster Coordinator (DDC) – Senior Management Analyst II, Division Office (SMAII – DO) – Executive Assistant (EA) – Research and Training Specialist (RTS) – Administrative Assistant III (AAIII) – Bureau Chief, Consumer Assistance (BC-CA) – Administrator, Unit 1, Consumer Assistance (A-U1) – Administrator, Unit 2, Consumer Assistance (A-U2) – Administrator, Unit 3, Consumer Assistance (A-U3) – Administrator, Unit 4, Consumer Assistance (A-U4) – Bureau Chief, Consumer Outreach and Education (BC-CO&E) –

Senior Mgmt Analyst II, Consumer Outreach & Education (SMAII-CO&E) – Public Information Director (PID) – Regional Director’s (RD) – (Daytona Beach) (Ft Lauderdale) (Ft Myers) (Jacksonville) (Miami) (Orlando) (Pensacola) (St. Petersburg/Largo) (Tampa) (West Palm Beach) (Largo)

The First Responder Program The Division of Insurance Consumer Services First Responder Program is staffed by the ten service (field) offices, and led by the Regional Directors. The intended purpose of the First Responder Program is to provide initial assistance and Department presence in the event of a natural and/or man-made disaster, within the state of Florida.

117



By June 1st

Continue through entire year

Division Specific Update Division telephone list for all offices Update RD and Alternate Contact List, inc. home, cell

and beeper numbers Update Tallahassee Staff Contact List, inc. home, cell

and beeper numbers Update Department’s Disaster Volunteer Manual Ensure that all Division manuals and telephone

number lists are accessible Contact Insurer Services for list of top 20 carriers

affected Gather materials needed for field and Help Line

volunteers Review consumer guides/pamphlets to ensure

quantity is sufficient Review procedures for forwarding telephones of

affected offices Review and update recorded messages on all toll-free

lines Check Disaster Assistance Help Line (DAHL) for

readiness Receive from Agents and Agencies Services a supply

of Emergency Adjuster Licensure forms and disseminate appropriately Post pertinent information to Department web site,

such as hurricane/disaster frequently asked questions, blank claim report form, hurricane preparation checklist, etc. Notify ECO that Preparation steps have been

completed.

AAIII DDC DDC DDC All Managers A-U4 All Managers, DDC PID BC-CO&E, SMAII-CO&E, RD BC-CA, SMAII-DO BC-CA DDC SMAII-DO DDC

First Responder Specific Review First Responder responsibilities with all field staff RD’s assess possible staging areas, should FEMA not designate an area Assemble Division disaster equipment (cell phones, T-shirts, manuals, car signs, etc.) Ensure that all eleven Emergency Purchasing cards have been received from the PCA and are accounted for by each RD Review all procedures and materials with staff Assign specific roles to staff both in and out of the office Maintain a current contact list with the local Fraud Office, including name and phone number Maintain a current contact list for local emergency management personnel Notify DDC that Preparation steps have been completed

DD, BC-CO&E, SMAII-CO&E RD RD and Staff DD RD RD RD RD RD

118

DOI Time

Frame Action Person

Accountable Activation (Level 1)

Disaster Imminent Or In Progress

Division Specific Notify all employees of pending disaster and DOI

Disaster Information Line activation (850-922-3191, SC 292-3191)

Establish and maintain communication with RD’s whose offices are within 100 miles of an imminent disaster.

Contact carriers to update disaster contact information

Update disaster contact information in CAS Contact FRPCJUA and FWUA for toll-free claim

numbers Disseminate all toll-free claims numbers for the top

20 P&C carriers to staff and the Press Office Post toll-free claim numbers for the top 20 P&C

carriers to the Department web site Provide Emergency Adjuster Licensure forms (as

requested) Receive, on a continual basis, from Agents and

Agencies Services the current list of Emergency Adjusters that have been approved via mail and fax

Service offices are to refer to remote call forwarding phone instructions

Prepare and implement any special coding for the CAS

Activate DAHL to feed into regular Help Line Prepare to activate DAHL volunteer workstations Train Tallahassee volunteers to operate DAHL Prepare reporting formats

Activate DAHL as separate entity Recruit additional employees for the Volunteer Pool as

necessitated by the severity of the event and requested by the ECO Notify staff of DRC locations and phones Prepare to extend hours of operation (if needed) Evaluate workload, change office assignments (as

needed) Provide management with activity reports (as

needed) Forward phones from the affected office(s) Secure technology resources per instructions from

Information Services Notify ECO that Activation steps have been

completed

DD, BC-CO&E, BC-CA, DD A-U1 to A-U5 A-U1 to A-U5 BC-CA BC-CA SMAII-DO All staff BC-CA RD SMAII-DO, AAIII, A-U2 BC-CA BC-CA RTS SMAII-DO, AAIII, A-U2 BC-CA DD BC-CO&E, BC-CA BC-CO&E, BC-CA BC-CO&E, BC-CA SMAII-DO, AAII RD, SMAII-DO RD, DD, BC-CO&E DDC


Disaster Has Occurred

B. DIVISION SPECIFIC Activate emergency property mediation program (if

needed) Accept requests for assistance and forward to

companies Recruit and train additional DAHL volunteers (as

BC-CA, A-U5 All staff BC-CA, RTS A-U1 to A-U5, AAIII

119

DOI Time Frame


Debriefing After Disaster

needed) Continue to verify insurer claim numbers and update

CAS Coordinate referrals of disaster specific problems Notify ECO that Performance steps have been

completed As requested, ship consumer guides/pamphlets to

DRC’s Debrief DAHL volunteers Analyze effectiveness of reports provided to

management Redirect DAHL to the regular Help Line number Review and revise Plan as needed

EA DDC PID DD, BC-CA SMAII-DO, AAIII, A-U2 BC-CA DD, All Staff


Disaster Imminent Or In Progress

First Responder Specific Upon direction of the COS, initiate First Response. Designate the Primary Field Manager.

DD

120

Division of Insurance Fraud Disaster Response Coordination Plan First Program Division of Insurance Fraud (DIF) The Special Operations Captain will review the Division’s current Disaster Response Plan and Emergency Response Team (ERT) Plan to ensure it adequately addresses DOI/DIF needs and/or concerns. The Captain will make changes and/or corrections, if necessary, and familiarize all supervisors with any changes. The Special Operations Captain will review the Division’s ERT callout roster to assure all reference information (cellular phones, beepers, two-way radios, etc.) is current. DIF policy #20 (Infectious Diseases) requires “All Division vehicles shall be continuously stocked with appropriate Personal Protective Equipment such as: barrier resuscitation equipment, face and eye protection devices, disposable gloves, etc.” DIF Field Offices Prior to hurricane season, all Lieutenants will meet with their respective personnel and discuss the Division’s current Disaster Response Plan and Emergency Response Team Plan. These meetings will be held individually or as a group. ERT team leaders, in cooperation with the Special Operations Captain, will make sure all our callout information (cellular phone numbers, beeper numbers, etc.) is current. If additional manpower is needed, all field office Lieutenants will compile an office callout roster with pertinent information such as phone numbers, pager numbers, etc. Lieutenants will inventory the emergency supplies for their field offices, and provide a list of their needs to the Special Operations Captain. In addition, the regional Emergency Response Teams roster will be updated. Each regional ream leader will also complete an inventory of emergency supplies.

121

DOI Time

Frame Action Person


By June 1st


Alert all Emergency Response Teams and members Review manpower and equipment status for teams

and report to the Special Operations Captain. Recruit volunteers if needed to bring the squad to full

strength. Ensure the team’s equipment, such as vehicles, body

bags, video equipment, lap top computer, radios and personal field gear is assembled.

Determine if additional volunteers are available if needed.

After receiving notification of a manmade or natural disaster, consult with one of the SFM Emergency Coordinators and then notify the DIF Director, Assistant Director, Chief of Workers’ Compensation Fraud, and Crime Intelligence Analyst Supervisor.

Notify all Regional Captains and ERT members to prepare themselves and their personnel for the possibility of immediate activation.

Contact ERT members and insure they are prepared to respond within two hours of being notified of activation.

Notify Division Director, Emergency Coordinating Officer (ECO), and Deputy Insurance Commissioner that the PREPARATION action steps have been completed.

DIF Field Offices

After ERT personnel have been notified, determine if

additional volunteers are available. Advise field personnel they could be activated if

needed. Notify the Special Operations Captain that the

PREPARATION action steps have been completed. Prepare computer equipment for impending disaster**

Division Director (DD) Team Leaders (TL) TL TL TL Special Operations Captain (SOC) SOC TL SOC Regional Captains (RC) Field Office Lieutenants (FOL) RC

** All field offices must protect the information technology resources in the event of and impending weather or other emergency conditions. If the field office location becomes a potentially threatened area, the following precautions should be taken to ensure the protection of critical department data stored on personal computers: 1. If there is critical department data stored on the hard drive of a personal computer,

staff should immediately make a back-up of the data onto diskettes. 2. For identification purposes, make certain that each diskette is labeled with the unit

or DOI RPO number and office location. When leaving the office either take the diskettes, or mail them to the Help Desk for safe keeping. The address for the Help Desk is: DOI Help Desk, B45 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-4200.

122

3. If assistance is needed with making back-up diskettes, please call the Help Desk at Suncom 293-3190 or 850/413-3190.

If the office location is in a strike probability zone and the office is ordered to evacuate, the following precautions should be taken: 1. Immediately before leaving the office, unplug all computers and printer from the wall

plug. Modems, network cables, televisions and fax machines should also be disconnected. This includes the power jack and cable and/or antenna jack. This will provide protection for these devices should sudden power surges occur.

2. It is not necessary to move computers unless it is located near windows where it

could be damaged by flying objects. Moving computers should be the last measure taken if the office is in the direct path of the storm.

If you have any questions, contact the help desk either by e-mail or phone (Suncom 293-3190 or 850/413-3190).

123

DOI Time

Frame Action Person

Accountable Activation (Level 1)


If management decides DIF’s role should remain reactive, then no action will be required.

Maintain contact with the SFM EOC and advise them of the ERT personnel we have available.

Contact Agent and Agency Services’ Director to determine if help is needed.

If necessary, instruct team leaders to move their personnel and equipment to a designated staging area to await deployment instructions. If this occurs, DIF ERT supervisors will meet with supervisors from the Division of Agent and Agency Services to establish a specific plan of action.

Deploy ERTs in compliance with mission statement and per Division Director’s orders. ERTs will normally be assigned to the following tasks:

Team A–High profile regulatory enforcement. The primary function of this team is to work with Agent and Agency Investigators in the identification and arrest of unlicensed adjusters. Team B–Undercover enforcement. The primary function of this team is to pose as disaster victims in an attempt to identify and arrest unlicensed adjusters and/or individuals attempting to defraud disaster victims of their proceeds. Team C–ERT squad from disaster area. Provide assistance to the Special Operations Captain, by attending public meetings involving law enforcement, disaster victims, prosecutors, and the insurance industry. Provide transportation and booking of prisoners. Provide security for Disaster Recovery Centers, Department of Insurance (DOI) property and personnel. Use knowledge of local area to assist other ERT squads with directions and communications. Non-ERT Personnel The Regional Captain or his designee, in coordination with the Special Operations Captain, will be responsible for the recruitment and deployment of non-ERT Division personnel in compliance with the Department’s Disaster Response Coordination Plan and the Florida Mutual Aid Plan Our P&P Disaster and ERT policies address actions

during and immediately after any disaster. Some of the more important sections are: 1. All personnel who live within the designated

disaster area should report to their immediate supervisor regarding their safety as soon as possible.

2. Lieutenants who live within the designated disaster area shall report to the Regional Captain or his/her designee with the status of all affected personnel within twenty-four (24) hours of the conclusion of the disaster. If a Lieutenant has not

Asst. Director (AD) or SOC AD or SOC SOC SOC All Staff FOL FOL All Sworn Staff RC

124


been able to determine the status of all personnel, they will still report, giving available information, within twenty-four (24) hours.

3. If a Lieutenant within a disaster area is unable to leave his/her family or property, he/she will immediately designate an available subordinate to be an “Investigator-in-Charge.” The Lieutenant’s supervisor will be advised of this delegation as soon as possible.

4. As soon as practical, all sworn personnel within a disaster area will make themselves available for assignment to disaster relief.

All Regional Captains will notify the Special Operations Captain that ACTIVATION steps have been completed.

Notify Division Director, ECO, and Deputy Insurance Commissioner that the ACTIVATION steps have been completed


AD or SOC Division Director (DD)

Continuation Continuation

Disaster Has Occurred After Disaster

Continue necessary actions from Level II The ERT will remain in operation until released by the

Division Director or his designee. Notify the Division Director, ECO, and the Deputy

Insurance Commissioner that the PERFORMANCE steps have been completed.

Within ten working days after the teams are released,

the Special Operations Captain and team leaders will meet and prepare an after-action report for the Division Director.

In addition, DIF personnel will assist and participate with the Chief of Staff to review the FIRST PROGRAM and to revise the agency’s plan as needed.

All Staff DD AD or SOC SOC and TL Assigned Staff

125

Division of Insurer Services Disaster Response Coordination Plan

DOI Time

Frame

Action

Preparation (level 2)

By June 1 Continue through Entire year

Person Responsible

st

Division Disaster Coordinator is appointed/confirmed for upcoming hurricane season. Division Office forwards list of Division Volunteers to ECO. “Faxgate” Company Contact/Fax Numbers Data Base Updated/Tested; Re-tested the first week of every month June–November Updates/ Additions to “Disaster Desk Top Handbook” are provided to Deputy Insurance Commissioner and Chief of Staff Division Disaster E-Mail Communication Groups are Tested/Updated Establish standard notice forms (bulletins, memorandums, orders, etc.) that would be sent to regulated entities as the need arises.

Division Director Division Disaster Coordinator Division Disaster Coordinator/ Division Disaster Coordinator/Bureau Chief of P & C Insurer Solvency Division Disaster Coordinator/ Division Disaster Coordinator/Division Director


Disaster Imminent In Process or has Occurred

Division obtains most recent QUASR run and conducts Review of Insurance Company Exposures in Affected Disaster Areas Division assures staff are engaged in activity to safeguard department property Seek Executive Order from Governor’s Office to suspend rate, form, and application filing/review process.

Bureau Chief of P & C Insurer Solvency Division Disaster Coordinator Division Director

Continuation(Level 1)


Division Disaster Coordinator will communicate with ECO, Emergency Coordinating Officer, to coordinate deployment of volunteers. Contact Catastrophe Managers of the FWUA and FRPCJUA to determine adjuster resources for this event. CCRC’s are contacted to check on residents.

ECO/Division Disaster Coordinator Residual Market Liaison

126

DOI Time

Frame

Action Person Responsible

Division volunteers are dispatched by ECO and, if necessary, a second wave of volunteers are alerted and placed on stand-by. Recruit additional employees for the Volunteer Pool as necessitated by the severity of the event and requested by the ECO Division conducts on-going assessment of the need for Emergency Rules, Bulletins related to the Disaster Event. Provide necessary management or technical assistance and support to other areas of the Department as requested.

Bureau Chief of Specialty Insurers ECO/Division Disaster Coordinator/Division Director Division Director Division Director/Division Disaster Coordinator/Bureau Chief of P & C Insurer Solvency Division Disaster Coordinator/Division Director

Continuation

After the Disaster

Division will review Catastrophe Performance and Documentation. Relevant issues of regulatory administrative/and or performance activities will be incorporated into a revised Disaster Plan for the Division. Division will participate in Agency-wide Debriefing Sessions Debriefing of returning volunteers to assess the need for any regulatory or administrative actions Field Examiners are Dispatched to Companies with Potential Solvency Issues

Division Disaster Coordinator Division Disaster Coordinator/Division Director Div. Director Bureau Chief of P & C Insurer Solvency

127

Division of Legal Services Disaster Response Coordination Plan

Level Time Action Responsible

Person Alternate


By June 1, continuing

NOTE: Each responsible person shall notify DD upon completion of the assigned responsibility. Division Director (DD) ________ Division Disaster Coordinator (DDC) _______ Alternate _______ Chief of Staff (COS) ________ Appoint Division Disaster Coordinator

Review Emergency Rules Procedures Manual and

update as necessary to conform to any legislative changes in Ch. 120.

Develop E-mail communication tree.

Handle Telephone and Address Lists

Provide addresses and phone numbers of Division of Legal Services Managers to Department Emergency Coordinating Officer (ECO). Obtain list of Department Managers’ phone numbers form ECO and distribute to Division Managers. Prepare list of addresses and phone numbers for all attorneys and list of addresses and phone numbers for all support staff. Update lists monthly. Solicit, identify, and maintain a list of volunteers

who are available to respond to catastrophic events. Recruit additional volunteers as necessary and resolve scheduling conflicts. Forward volunteer list to ECO.

Maintain a list of attorneys and support staff who

will be responsible for adoption of emergency rules (Emergency Rule Team).

Report completion of preparation steps to _______

and DD.

DD DDC DDC DDC DDC


Alert volunteers, resolve scheduling conflicts and recruit additional volunteers as necessary.

Recruit additional employees for the Volunteer Pool as

necessitated by the severity of the event and requested by the ECO

Activate E-mail communication tree.

Assist ECO in the Dispatch of volunteers.

Report completion of activation steps to ________and DD.

DDC Legal Services Disaster Management Team DDC DDC

Continuation When required by Chief of Staff (COS), identify available DDC

128

Level Time Action Responsible Alternate Person support staff and legal staff to assist in answering Consumer

Hotline and staffing DACs and Outreach programs. Provide list to ECO.

Representatives of Division Management attend Department

disaster response briefings. Determine availability of emergency rule team members

Activate emergency rules team to assist other divisions with

drafting and adoption of emergency rules. Direct attorneys responsible for filing administrative Cease

and Desist Orders against unlicensed adjusters, other adjusters, and agents.

Direct attorneys handling challenges to emergency rules.

Direct attorneys to assist Division of Insurer Services with

any necessary administrative or civil proceedings regarding insurers.

Provide legal services in connection with establishment and

operation of mediation program. Defend any civil proceedings initiated by insurers arising

from deficits/ assessments of CAT fund and JUAs, etc Report completion of performance steps to _______ and

DD. Department wide debriefing of returning volunteers.

Disseminate information collected.

DD/DDC DDC DDC DDC COS COS

Others with responsi-bility as directed

129

Division Of Rehabilitation And Liquidation

Division Director (DD) – Division Disaster Coordinator (DDC) – Chief Attorney (CA) – Deputy Receiver(s) (DR) – Receivership Coordinator (RC) –

Receivership Administrator (RA) – Claims Manager (CM) – Director of Accounting (DOA) – Property manager (PM-– Operations Administrator (OA) –

Mgr of Workforce Innovation (MWI) – Vacant

Bureau Chief P & C Solvency (BCS) – EOC Director (EOCD) – General Counsel (GC) –


Accountable Preparation (Level 2) Activation (Level 1)

By June 1st each year. Continue through entire year. Disaster Probable Or Imminent

Review Disaster Plan and appoint Division Disaster Coordinator prior to June 1, each year.

Create and maintain up to date phone listings of persons having priority functions in the event of a disaster.

Set up mechanism for receivership employees to volunteer and assist in DOI disaster relief if necessary.

Encourage interested employees to attend DOI training in homeowners’ insurance and other related classes. Familiarize managers and staff with the Department’s Disaster Response Coordination Plan.

Establish off-site storage of supplies necessary to continue operations, i.e. emergency check supply, forms. Backup procedure for computer systems established.

Install extra phone lines for the “800” number that can be activated in the event they are needed.

Designate emergency laptop computers, peripherals, cellular phones, pagers and other equipment for disaster response personnel.

Identify all insurance policies covering Division property (real and personal), including agent(s) name and phone numbers as well as insurance carriers phone numbers for reporting claims.

Identify Potential volunteers and ensure training for volunteers who could travel for either disaster relief and or new receivership operations.

Encourage and or assist in facilitating the training of individual volunteers in related classes.

Set up communications tree (phone and email)

Implement Disaster Plan

Alert volunteers

Advise employees of the Alert and identify any

employees (including temporary employees) who may reside in potential evacuation areas.

Identify and secure, to the extent possible, any

receivership property (real and personal) at risk. Supervisors will review leave and travel requests to

determine that volunteer personnel are available if necessary to perform essential duties.

DDC DDC DDC DDC DDC/DOA RA DDC OA/PM DDC DDC DD DDC DDC DDC OA/PM DDC DDC

130


Activate communication tree. Assure that all offices of the Receiver are prepared to

protect all assets of the Receiver in the event a disaster strikes. This includes warehouses or other storage facilities.

Coordinate backup of all electronic records. Computer

Support Services (CSS) does complete back up of computer records in Tallahassee. Miami office has tapes picked up weekly by The Document Bank and stored off-site. In event of an emergency, tapes will be flown to the Document Bank in Columbus, Ohio according to our contract with The Document Bank.

Update any Division and/or receivership company

web sites. RC Check out the mobile phones and laptops held in our

administration and CSS units to the personnel traveling.

Review recorded messages on “800” lines. Find and

make available to Claims Unit all available emergency numbers for referral to consumers.

Forward phones or record messages on all open

receivership company phones (on-site) Notify EOCD and General Counsel that activation

steps have been completed. Ensure communications tree is functioning.

Advise the Department’s EOCD and Division

operations Administrator and Property Manager of the extent of any known damage to Division property and location of any immediately available personnel in affected area.

Notify insurance agent(s) or carrier(s) of any loss or

damage to Division property. If the Department of Insurance does not have a

sufficient number of Disaster Relief volunteers, and receivership employees are needed to travel for Disaster relief efforts, the Department’s EOCD will notify the Division Director or Division Disaster Coordinator. Paperwork will be completed by the Division Human Resources Manager to place those employees on administrative leave and to sign them up for OPS for 1-2 weeks each.

Check with the Florida Insurance Guaranty

Association (FIGA) regarding available funds and dj di i h

Managers who supervise remote offices, DR for open receivership company offices, DD for home office. DDC RC DDC RA DR DD DDC DD/ or DDC OA DD/DDC/M

WI DD/ or CM

131


Performance(Level 1) Debriefing

Disaster Has Occurred Or In Progress After The Disaster

adjusters; coordinate consumer response in the event of disaster induced insolvencies.

Coordinate immediate travel plans as required.

Find and make available to Claims Unit all available

emergency numbers for referral to consumers. (Example: P&C carriers, FRPCJUA’s claim handling carriers, etc.)

Set up on-site operations at companies in

receivership. Review needs for additional phone staff and activation

of emergency lines if required. Provide assistance to FIGA as available.

Notify EOCD and General Counsel that performance

action steps have been activated. Maintain close contact with Division of Insurer

Services to identify, as early as possible, companies in distress as a result of disaster-related claims.

Keep open lines of communication with regulators to

determine which companies will be most affected and could result in immediate receivership. Responsibility: Chief Attorney or Division Director–most likely contacting Bureau Chief of P&C Solvency. In the event of multiple receiverships, plan for temporary or emergency quarters for the receiver and FIGA if applicable, to the extent possible in the affected area.

Obtain consent from companies agreeing to

liquidation. Obtain Departmental approval and court order appointing DOI as receiver. Notify and fax to appropriate parties. [Note: this may not occur until 3-4 weeks after the storm when companies have had an opportunity to assess the effect of storm-related claims on their financial condition.

Establish and maintain weekly post-disaster meetings

with Division of Insurer Services to identify and monitor potential insolvency issues.

Review Division’s staffing needs in conjunction with

anticipated increase of on-site personnel and make appropriate adjustments.

Attend Agency-wide debriefing sessions and report on

relevant matters affecting FL’s policyholders. Disseminate information collected Agency-wide to

management team.

DDC RA

DR

RA

DDC

DD

DD DD, assigned staff and FIGA, if applicable

CA DD/CA DD/MWI

DD/CA/CM

DDC

132

Division of Risk Management Disaster Response Coordination Plan

DOI Time Action

(Level 2)

By June 1st Request initial volunteers and determine if additional volunteers would be available if needed. Notify Emergency Coordinating Officer (ECO) of this information.

Division Director (DD)

Verify field equipment and tools are checked for readiness and secure ample forms and other paper documents for use in Field.

PSA &

AS

PSA Coordinate process to print extra supply of loss reporting forms and other paper documents needed for field operations and use.

Telephone or electronic mail notification to Division Director, Assistant Division Director and Property Section Administrator of division readiness status.

BC

Notify ECO and Deputy Insurance Commissioners that PREPARATION has been completed.

(Level 1) Disaster Imminent In Progress Or Has Occurred

Contact Division Disaster Coordinator to report ACTIVATION

BC


DD

Contact Fire Marshal Representative at SEOC for update and briefing on storm, or storm update is received from DCA Emergency Management representative via electronic mail

PSA

If major loss is probable (total of $1,000,000 or more) gather pertinent information and contact BC.

PSA

Contact BC to brief on conditions of storm or other emergency event.

PSA

Contact DD, Assistant DD and excess insurance broker. BC

Contact Property Section personnel; begin implementation of Disaster Action Plan.

BC

Frame Person

Accountable Preparation

Continue Through Entire Year

Assure Property Section employees review and familiarize themselves with Disaster Response Coordination Plan.

Property Section Administrator (PSA)

BC

Activation

133


Procure cellular phones and lap top computer for field personnel.

BC

Initiate contact with Department of Community Affairs (DCA) and FEMA if needed.

BC

Property Section staff meets to discuss information obtained from SEOC and prioritize plan of action

PSA

Contact State Fire Marshal’s Office to secure information about RIAT; confirm BC, IA and E or any combination thereof will accompany RIAT to disaster area(s).

PSA

Run County report(s) for damaged area.

Insurance Administrator (IA)

Contact Property Coordinator(s) (PC) for affected area(s) and instruct them on claim procedures. Set up appointments for damage assessment.

Engineer II (E), IA, PSA

Make travel arrangements for BC, IA and E to go to damaged area(s).

PSA

Contact ECO to secure ID badges for non-departmental personnel (such as excess insurance carrier adjuster) working with Risk Management people in affected area(s).

IA, PSA

Coordinate with BC in conducting field meetings for PCs on how to file a claim.

PSA

Coordinate the process to open claim files for losses PSA

Make second contact with Fire Marshal’s Office; confirm arrangements and escort into damaged area. Get updated report of damage assessment in affected area from SEOC

PSA

BC, IA and E go to affected area for damage assessment BC

Assign loss report collection duties according to agency involved.

Collect loss reports, verify insurance coverage and initiate file set up.

IA

Advise DD and excess insurance broker of current estimated total losses.

PSA

BC

Continue coordination with FEMA and DCA staff as necessary to complete recovery efforts.

PSA, IA

134


Receive incoming information from agencies, keep field operations staff informed.

PSA

Notify ECO and Deputy Insurance Commissioner that ACTIVATION STATUS has commenced

BC

Continuation(Level 1)


Work with PCs on finalizing losses, continue throughout the catastrophic season and/or whatever time period it takes to close claim files

IA

Notify ECO and Deputy Insurance Commissioner that PERFORMANCE has been activated.

BC

After Disaster

BC Continuation Review process for changes or modification of plan.

135

Division of Treasury Disaster Response Coordination Plan

Division Disaster Coordinator (DDC) –

Division Director (DD) – Administrator of Treasury’s Information

Systems (ATIS) – Administrator of the Investment Section

(AIS) –

Bureau Chief of Banking (BCB) – Bureau Chief of Collateral Securities

(BCCS) Administrator of Deferred Compensation

(ADC) – Emergency Coordinating Officer (EOC) -

Division Disaster Team – (DDT) Chief of Staff – (COS)


Accountable


By June 1st


Establish a list of at least three (3) volunteers. After the initial volunteers are selected, determine if there are additional volunteers who would be available if needed.

DDC

Ensure Division supports the Department’s Emergency Management Plan by coordinating support and services to provide uninterrupted services during and after emergency and natural disaster situations.

DD

Establish an operational Emergency and Natural Disaster Response Plan to assist managers, supervisors and employees prepare to maintain and sustain operations.

DD

Develop Communications Tree. DD

The Division Disaster Coordinator will closely monitor all activities or reports from other DOI or state agencies, and keep management of the Division apprised of reports, developments or activities.

DDC

The Division Director will establish a Division Disaster Team made up of the Division Disaster Coordinator, Director, Bureau Chief of the Bureau of Banking, the Bureau Chief of the Bureau of Collateral Securities, the administrators within these two (2) bureaus, the Administrator of the Deferred Compensation Section and the Administrator of the Division’s Information Systems Section.

Division Disaster Coordinator is in constant communication with volunteers to ensure they are prepared.

DDC

The Administrator of the Division’s Information Systems Section rechecks the Bureau of Banking’s equipment to verify everything is working properly

ATIS

Division Director informs Emergency Coordinating Officer that Preparation steps have been completed DD



Division Director activates the Division’s Disaster Team by placing them on notice of pending emergency or natural disaster.

DD

Division Disaster Coordinator sends updates to the Division’s Disaster Team.

Recruit additional employees for the Volunteer Pool as

necessitated by the severity of the event and requested by the ECO

DD

DD

Division Disaster Coordinator ensures that volunteers have been properly trained which will be coordinated with Emergency Coordinating Officer.

DDC

DDC

136


Division Disaster Coordinator coordinates volunteers and support requirements with the Emergency Coordinator Officer.

DDC

Deferred Compensation Section

Administrator of Deferred Compensation Section coordinates with the Department’s Information Services to ensure that Deferred Compensation’s line(s) i.e. number (850) 922-3162, and fax line (850) 488-7186 are operational.

ADC

Bureau of Banking

Bureau Chief coordinates with the Department’s Information Services to ensure that the Investment Section’s line(s) i.e. number (850) 413-2793, and fax line (850) 488-7186 are operational.

BCB

Bureau Chief coordinates with the State Board of Administration (SBA) access to the Hermitage Centre Building to allow investment section designated employees to perform financial investment operations

BCB

Bureau Chief or the Administrator of the Division’s Investment Section coordinates with Treasury’s Information Systems Section to ensure network support is provided so that the Treasury can communicate with Banks for purposes of balances and to send trade instructions.

DD

Division Director informs Emergency Coordinating Officer that activation action steps have been completed. DDC

Division Disaster Coordinator sends update to the Division’s Disaster Team. DD/DDC

Division Director with the assistance of the Division Disaster Coordinator, if necessary, will identify and coordinate additional volunteers to support the Department’s volunteer rotation plan.

DD

Division Director participates in meetings and conference calls with external investment managers DDC

Division Disaster Coordinator coordinates all support and services for Division employees and operations DDC

Administrator of Treasury’s Information Systems Section will coordinate support and sustainment of Information Services for Division employees and operations

ATIS

Performance (Level 1) Has

Occurred DD

Disaster Division Director informs Emergency Coordinating Officer that performance action steps have been activated.

Disaster

Department-wide debriefing of returning volunteers ECO Disseminate information collected DDC

Continuation After No action necessary.

137

Office of Information Services Disaster Response Coordination Plan Information Services Emergency Response Team (ISERT)

OIS Disaster/Emergency Coordinator (DEC)–

Application Engineering (AE) –

Network Administration (NWA) – CBX/ROLM Administration (CBX) –

Technology Services (TS) –

Technology Research (TR)–

Director Office of Information Services (DIR)–

Mainframe Administration (MFA) –

Network Administration (NWA) –

Business Analyst Section (BA) –

Technology Services (TS)

Technology Purchases (TP) –

DOI Time Action

By June 1st


Convene ISERT DIR/DEC

Review OIS Emergency Response Plan ISERT Request list of volunteers from Applications Development

and Business Analyst Sections and notify ECO of this information.

DEC

Make preparations for obtaining server backups for sites that may be impacted

NWA

Ready laptops for response team and begin locating others in the event that the Department moves to next level.

TS

Address platform scheduling issues and place vendors on standby.

MFA/TR

DEC Record status notification for OIS staff on OIS Disaster Line (ISDL).



Convene ISERT DIR

Activate OIS Emergency Response Plan DIR

Implement emergency response activities as specified in OIS Emergency Response Plan

ISERT

Account for OIS staff. Provide single point of contact for departmental

technology related updates.

Frame Person


Determine if there are additional technical volunteers who will be available if required.

ISERT

Provide notification of any network issues that may impact disaster/emergency preparations

NWA

Provide notification of any desktop issues that may impact disaster/emergency preparations

TS

Make preparations to notify sites that may be impacted of procedures to follow to secure and protect desktops.

TS

Make sure all cellular phones in Cellular Phone Pool are located and ready to activate.

CBX

Provide information to Department staff on how to activate cellular phones.

CBX

Assure that all required OIS staff, vendor support staff and information technology resources are readily available to respond and are staged for emergency response

ISERT

ISERT TS

138


Coordinate with appropriate department teams and contact persons for the systematic mobilization, organization and operation of critical department information technology resources.

ISERT

Provide instructions via electronic mail to Department

staff for securing technology resources physically located in the affected area.

TS

If required, place staff in the State Emergency Operations Center.

ISERT

Check the Department’s Disaster Call Processing Box and make sure it is ready for recording.

CBX

Forward all Tallahassee affected organizational phone lines to Department’s Disaster Call Processing Box. Each Field Office will be responsible for forwarding their Field Office phone lines to their respective Divisions. NOTE: If disaster/emergency impacts Tallahassee Offices, Division of State Fire Marshal and Information Services Disaster Lines will not be forwarded

Work with Department’s Disaster Cellular Phone Pool to activate reserve cellular phones

NWA

Activate Network Resource Protection Action Plan (locally and remote).

MFA/TR

Address Platform scheduling issues. DEC Record status notification to OIS staff on ISDL ISERT Continuation(Level 1)


ISERT Initiate recovery measures.


DIR

Provide updated information to OIS staff and other Department units.

TS

Provide consultation to other Department units DIR Conduct ISERT meetings to establish strategies to

address areas of concern NWA

Verify condition of network systems (locally and remote). TS Verify condition of desktops (locally and remote). TS Continuation After

Disaster Verify condition of information technology resources and provide damage assessment reports.

DEC

Institute corrective actions as necessary ISERT Deactivate any temporary systems as conditions dictate. ISERT

Distribute laptop pool if necessary TS

Communicate with Office of the Treasurer to determine and verify verbiage for Department’s Disaster Call Processing Box.

CBX

Schedule Department’s voice person to record message on Department Disaster Call Processing Box.

CBX

CBX

Provide Post-Disaster Reports and recommendations for improvements.

ISERT

139

Office of Communications and Public Affairs Disaster Response Coordination Plan Director of Communications (DOC) Press Secretary (PS) –

DOI Time Frame


By June 1st


Key media will be provided with the Press Secretary’s Office, home and mobile telephone numbers.

DOC

The DOI Director of Communications, or the Press Secretary, contacts the public information coordinator of the Department of Community Affairs, who serves as primary spokesperson for the state Emergency Operations Center.

The DOI Press Secretary serves on the emergency preparedness press group.

PS

The Communications Office also arranges with ________, of the Florida Insurance Council, and , of DOI’s consumer services, to publish toll-free, damage claims telephone numbers for at least the top 20 property and casualty carriers in Florida.

DOC

Consumer Services will be contacted to obtain the latest toll-free claims reporting telephone numbers for the FWUA and for each FRPCJUA servicing carrier.

____________, is alerted to prepare for production of public announcements on topics such as hurricane tips, unlicensed public adjusters and the claims mediation process. Soundtracks from video products should be dual for use by radio stations

DOI Press Secretary notifies that Level Two action steps have been completed.

(Level 1) Disaster Imminent In Progress Or Has Occurred

PS

The Communications Director and Press Secretary prepare a series of news releases for public dissemination. These releases will include, among other things, information on hurricane preparedness; toll-free claims numbers for both the top 20 insurers and the Residential JUA; and also, the DOI’s 1-800-22-STORM toll-free Help Line

DOC

News releases are disseminated to newspaper, trade journal, television and radio outlets over the Communication Office’s zoned fax-gate system and via the Internet.

DOC

Also, the Communications Office will provide with a two-page fact sheet on DOI’s press policy for distribution to field volunteers during orientation.

DOC


DOC

DOC

DOC

DOC

Activation A DOI public information officer, Deputy Press Secretary is stationed at the EOC to begin relaying needed information to DOI’s communications office as needed

140


In the event of power outage or computer system failure, news releases are typed and distributed through members of the Capitol press corps, as well as by the Communications Office Staff Assistant who makes direct telephone calls to key media.

DOC

The Communications Office gathers and releases information from the DOI, Fire Marshal and Treasurer’s Office, and on matters concerning the Federal Flood Program and its points of public contact. Topics of media interest are the Fire Marshal’s rescue efforts, JUA exposure and claims, and insurance –loss damage estimates based, in part, on information supplied by industry groups including the Florida Insurance Council

DOC

Arrangements are made with the Governor’s Office or the Florida Marine Patrol or National Guard for a flyover of the storm-damaged area by the Insurance Commissioner. Such a trip can include a walking or driving tour escorted by Fire Marshal personnel, and could be coordinated by .

A release is issued regarding the details of the Commissioner’s media availability.

DOC

If the disaster is of a magnitude to warrant, a member of the Communications Office will travel to the scene and work out of the state’s Disaster Field Office, where there will be daily briefings by state and federal emergency management officials, and inquiries from media on the scene.

DOC

Press Secretary notifies that Level four action steps have been activated.

PS

DOC

DOC


141

Budget and Strategic Planning Disaster Response Coordination Plan



By June 1st


Review uniform procedures for the Office of Budget and Strategic Planning to be utilized in the event of a disaster.

Budget Director

Budget Director

Obtain Disaster Recovery Procedures relating to funding recovery from the Governor’s Office of Planning and Budgeting

Attend Disaster Preparedness training provided by the State Emergency Operations Center

Budget Director

Designate which staff will be responsible for monitoring the current situation and will assign responsibility in the event of activation and notify the Department’s Emergency Coordinating Officer (EOC) accordingly.

Budget Director



Upon the activation of the State Emergency Operations Center, schedule time to participate in the Emergency Support Functions #4 and #9 recovery operations in addition to monitoring the work flow at the Center between the Department of Community Affairs and the Department of Insurance.

Budget Director

Forward all updates provided by the Department staff operating the EOC to all budget Staff

Budget Director

Attend the Department of Insurance’s EOC upon activation to become acquainted with the process and work flow.

Budget Director

Notify the ECO that Activation action steps have been activated.

Budget Director Budget Director

Notification of the scheduled conference calls by the Department of Community Affairs will be forwarded to the Bureau Chief of Bureau of Financial and Support Services

Budget Director

Budget Director

Budget Director

TBA/BUREAU OF FINANCIAL AND Support Services

Notification will be provided to the Division of Risk Management, Bureau Chief, Bureau of Property, Financial and Risk Services, of schedule for cost estimates as required by the Department of Community Affairs, and the Executive Office of the Governor, Office of Planning and Budgeting.

Upon notification from the Division of State Fire Marshal, will participate in the Budget Officer updates by conference calls as directed by the Department of Community Affairs

E-mail will be sent to Chief of Staff, the Communications Office and the ECO with pertinent information obtained as a result of the conference calls.

Notification will be provided to the Department’s ECO of schedule for cost estimates as required by the Department of Community Affairs and the Executive Office of the Governor, Office of Planning and Budgeting.

Assist the Division of State Fire Marshal and other effected divisions in computing cost estimates.

Budget Director

142



Budget Director

Necessary Action steps from Activation (Level I) will continue

Budget Director

Coordinate with the Bureau of Financial and Support Services in the collection and compilation of all disaster costs and provide this information to the Department of Community Affairs, Executive Office of the Governor, Office of Planning and Budgeting, Chief of Staff and the Press Secretary.

Budget Director

Continuation Disaster Has Occurred

Prepare budget amendments for submission to the Office of Planning and Budgeting as needed.

Budget Director

143

Disaster Cellular Phone Pool The Emergency Coordinating Officer (ECO) will ensure there are a sufficient number of cellular phones for the volunteers. The Field Offices of Consumer Services, Agents ant Agencies Services, Fire Marshal and Insurance Fraud have cellular phones assigned on a permanent basis and will not need additional ones.

Addendum

Level Two Division Directors of Consumer Services and Agents and Agencies Services will check with field office supervisors for proper location of disaster phone(s). Also, make sure all accessories are with disaster phones; such as: extra batteries, chargers. Emergency Coordinating Officer will do the same for volunteers. Level One Field office supervisor will activate disaster phone(s) (if disaster in their area). Emergency Coordinating Officer will activate disaster phones for volunteers. Call __________, with telephone number after activation. Field office supervisor will call their Division Director with phone number. Continuation Leave disaster phone number activated as long as necessary. Call Fred Green prior to de-activation for a Communication Service Authorization (CSA) to cancel service.

Consumer Services keeps the emergency cell phones active year round. They are never deactivated.

144

Standard Telephone Message Hurricane Emergency Recording–when the Larson Building is closed. Due to hurricane or severe conditions in North Florida all non-emergency state personnel have been ordered by the Governor not to report to work. As soon as the Governor declares that the weather conditions in North Florida do not pose a threat to state employees’ safety, our offices will re-open, and we will be happy to assist you with your insurance-related questions or problems. If you do not live in the area of the storm, please call the local state insurance office in your area; the number is available in your telephone directory. Insurance questions related to the hurricane may also be directed to the Insurance Department’s hurricane hotline at 1-800-22-STORM (1-800-227-8676). The Insurance Commissioner or Chief of Staff will notify ___________ when to place this message on the ROLM phone system. Hurricane Telephone Message Due to hurricane conditions in North Florida, non-emergency state personnel have been ordered by the governor to stay home. The insurance commissioner’s staff, however, remains in close contact with insurers to make certain policyholders get a rapid response to any damage claims. As soon as the governor declares an end to emergency conditions here, this office will re-open. If you’re calling from outside the storm area, you can contact one of our ten regional service centers listed in your local phone book. Insurance questions related to the hurricane may also be directed to the Insurance Department’s hurricane hotline at 1-800-22-STORM (1-800-227-8676).

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Post Disaster Continuation The Emergency Coordinating Officer will meet with each returning volunteer group to determine what is happening at the DRC and make changes that may be warranted. At the end of each disaster, the DOI Emergency Coordinating Officer will chair a debriefing. Attendees at this debriefing will be appropriate representation of those areas involved in responding to the disaster. The purpose of the debriefing is to determine if changes are needed in our response procedures.

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Adjuster SERT badges As a result of several years of work by the Florida Department of Insurance (DOI), the Florida Emergency Preparedness Association, the Florida Department of Community Affairs, Division of Emergency Management (DEM) and the Florida Insurance Council (FIC), Florida has a unique mutual cooperative understanding among these parties. The purpose of which is to provide expedited insurance settlements to insured citizens following a natural disaster. One of the important aspects of this understanding is the issuance of State Emergency Response Team (SERT) badges by the Florida Insurance Council to insurance carriers, managing general agents, agent associations, and other organizations approved by the State EOC. These badges, issued annually, are recognized by DEM as identification as an insurance adjuster. The badges allow insurance adjusters early access into limited access neighborhood(s) most severely impacted by the event. With early access the adjuster can assess the amount of damage to individual structures and issue emergency funds (ALE checks) covering temporary living expenses to policyholders of the impacted area. Local Emergency Management Officials, in conjunction with the Florida Department of Emergency Management will make the determination when the most severely impacted neighborhood(s) are reasonably safe for non-emergency personnel to enter. Once that determination has been made, local officials will notify the State EOC and local police officials. The insurance liaison in the state EOC will notify the insurance industry, via the FIC web site catastrophe page, that anyone presenting him or her self at a checkpoint and displaying a current SERT badge should be allowed to enter the limited access area(s).

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Office Closing Procedure (For administrative leave authorization) Preceding a disaster there are several ways employees may be authorized to take leave from duty. Employees may be authorized either by their supervisor verbally or in writing, to take leave prior to, during or following a disaster occurring in Florida. Authorization for administrative leave will be announced via email (assuming the statutory decision has been made during working hours), or via the Employee Information Line (922-3191).

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Leave Provisions for Office Closings When the governor or agency head has determined that a state office should be closed due to a disaster, the employee’s absence may be covered by administrative leave. If the office is closed for an entire workday, the numbers of administrative leave hours are equal to the hours in the employee’s established workday. Employees who are on a prior approved leave of absence (annual, compensatory, sick leave, Personal Holiday, or leave without pay) are not eligible for administrative leave on that day. Employees, excluding OPS, who at the time of the office closing are required to provide essential services will be granted special compensatory leave credits for the actual number of hours worked during the time the office was closed. Employees who provide essential services directly related to the disaster must use the “green” time sheet starting with the date of their initial involvement through the end of the month. Time spent on activities related to the disaster will be so indicated and coded according to the codes on the back of the “green” time sheet. At the end of the month, both the “white” and “green” time sheets will be sent to Personnel. If the essential services performed are not directly related to the disaster, but part of the employee’s normal work duties, the employee would record the hours of work on the “white” time sheet. Supervisors of affected employees have the responsibility to ensure that the individual time sheets are completed accurately and in accordance with the leave provisions.

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Extra Hours Worked–Excluded Employees In order for the Department to effectively meet its statutory requirements, the needs of the people and businesses affected by natural disasters, or other emergencies, administrative policies must be flexible and responsive to operational needs. Therefore, it is hereby provided that departmental employees filling “Excluded” positions (exempt from the FLSA) have the option of receiving cash payment in lieu of regular compensatory leave credits for overtime worked under the following circumstances. 1. When the Governor, by Executive Order, has declared a state of emergency, the

Insurance Commissioner or his designee may put this plan into effect. The Insurance Commissioner or his designee will identify the beginning and ending dates in which regular compensatory leave credits can be paid.

Payments will be made in the month following the month in which the overtime was worked.

2. When extraordinary circumstances brought about by an unanticipated workload

increase or staff shortage require overtime in order meeting statutory requirements, the appropriate Deputy or Chief of Staff may put this plan into effect.

“Excluded “ employees shall receive cash payment for overtime in lieu of regular compensatory leave credits as follows: • An employee must officially be assigned duties and responsibilities directly related to 1

or 2 above. • An employee must have a regular compensatory leave balance of at least 40 hours

before becoming eligible for this payment. • Eligible employees will be compensated at their regular hourly rate of pay for each hour

of overtime worked.

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Extra Hours Worked–Effect on Annual Leave Used

Extra hours worked–any hours worked beyond your normal work schedule will offset any leave (administrative, annual, sick, regular compensatory and special compensatory) taken.

Excluded Employees offset within the work month.

Included Employees offset within the work week–Saturday through Friday

Saturday Sunday Tuesday Wednesday Thursday Friday

(During Disasters)

Offsetting Example–For an Included Employee (for an Excluded Employee, expand below example to work month)

Monday Totals Regular Hours Worked

8

8

Office Closed Due to Disaster

32

8

8

Relief Hours Worked

4

4

8

Admini-strative leave

offset

Totals

8 8

0 12

12 40

8

8

The above example shows 0 hours administrative leave used for Wednesday. This is because the employee actually worked 40 hours by the end of the workweek and administrative leave is not needed to bring the hours up to the required number of hours in the workweek (in the month for excluded employees).

Again, because a total of 40 hours were worked, no administrative leave is needed to achieve a 40-hour workweek.

An Included employee would not receive overtime pay in the above example. Overtime is defined as hours of work in excess of 40 in the workweek. An Excluded employee would not receive comp credits–the hours of work would have to exceed the required amount for the month.

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Career Service Classes and Overtime Employees assigned to classes for which overtime pay is indicated receive overtime pay at 1.5 times their hourly rate of pay for hours worked in excess of the 40-hour workweek.

Class Overtime

Employees assigned to classes for which no overtime pay is indicated receive regular compensatory leave credits on an hour-for-hour basis for hours of required work in excess of the hours in the monthly work period.

Code Class Title Pay 1427 Accountant I...................................................................................................Yes 1430 Accountant ....................................................................................................Yes 1436 Accountant II ..................................................................................................No 1437 Accountant IV .................................................................................................No 1448 Accounting Services Administrator ..................................................................No 1442 Accounting Services Supervisor I .....................................................................No 1440 Accounting Systems Analyst ............................................................................No 3553 Actuarial Analyst ............................................................................................No 0709 Administrative Assistant I...............................................................................Yes 0712 Administrative Assistant II..............................................................................Yes 0714 Administrative Assistant III..............................................................................No 0108 Administrative Secretary.................................................................................Yes 2135 Assistant Data Center Director .......................................................................No 1686 Budget Analyst ................................................................................................No

2130 Data Processing Administrator ........................................................................No

2133 Data Processing Manager ................................................................................No

0003 Clerk Specialist ..............................................................................................Yes 0078 Clerk Typist Specialist ....................................................................................Yes 2023 Computer Operator III ....................................................................................Yes 2102 Computer Programmer Analyst I.....................................................................Yes 8433 Crime Intelligence Analyst I ............................................................................Yes 8436 Crime Intelligence Analyst II ...........................................................................Yes 8439 Crime Intelligence Analyst Supervisor..............................................................No 8463 Crime Laboratory Analyst ...............................................................................Yes 8466 Crime Laboratory Analyst Supervisor...............................................................No 6527 Custodial Supervisor I ....................................................................................Yes 2127 Data Base Administrator .................................................................................No 2001 Data Entry Operator.......................................................................................Yes

2013 Data Processing Control Specialist..................................................................Yes

3514 Deferred Compensation Specialist...................................................................Yes 8840 Deputy Boiler Inspector ..................................................................................Yes 2053 Distributed Computer Systems Administrator..................................................No 2052 Distributed Computer Systems Analyst ..........................................................Yes 2050 Distributed Computer Systems Specialist .......................................................Yes 8410 Duty Officer....................................................................................................Yes 4630 Engineer II.......................................................................................................No 4633 Engineer III .....................................................................................................No 4635 Engineer Iv ......................................................................................................No 0720 Executive Assistant II ......................................................................................No 0114 Executive Secretary ........................................................................................Yes 0831 Facilities Services Manager Assistant...............................................................No

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Class Overtime Code Class Title Pay

4135 Fire College Academic Instructor......................................................................No 1362 Fire College Instructor .....................................................................................No

1415 Fiscal Assistant I ............................................................................................Yes 1418 Fiscal Assistant II ...........................................................................................Yes 8459 Forensic Technologist .....................................................................................Yes

1664 Inspector General-Doi .....................................................................................No 3530 Insurance Administrator B ..............................................................................No

3521 Insurance Examiner I ......................................................................................No

8540 Law Enforcement Investigator I.......................................................................Yes

8522 Law Enforcement Lieutenant ..........................................................................No 8526 Law Enforcement Major ..................................................................................No 6466 Maintenance Mechanic ...................................................................................Yes

2212 Management Analyst II ....................................................................................No 2239 Management Review Specialist ........................................................................No

2043 Office Automation Specialist II ........................................................................Yes

7703 Paralegal Specialist ........................................................................................Yes 1003 Personnel Aide................................................................................................Yes

3534 Field Insurance Regional Administrator ...........................................................No 3501 Field Insurance Representative II .....................................................................No 3502 Field Insurance Representative III....................................................................No 1366 Field Repr Supv-Fire Fighters Stds & Trn.........................................................No 1360 Field Repr-Fire Fighters Stds & Trng................................................................No 1466 Finance & Accounting Director III ....................................................................No 1587 Financial Administrator...................................................................................No 1567 Financial Control Analyst ................................................................................No 1554 Financial Examiner/Analyst I .........................................................................Yes 1564 Financial Examiner/Analyst II ........................................................................Yes 1575 Financial Examiner/Analyst Supervisor...........................................................No 1566 Financial Specialist ........................................................................................No 1364 Fire Coll Instr Supv-Fire Fgtr Stds & Tr ...........................................................No

8804 Fire Protection Specialist ................................................................................Yes 8805 Fire Protection Specialist Supervisor ...............................................................No

3733 Information Specialist II..................................................................................Yes

3533 Insurance Administrator C ..............................................................................No 3525 Insurance Administrator-Loss Prevention ........................................................No 3515 Insurance Analyst I .........................................................................................No 3518 Insurance Analyst II ........................................................................................No

3524 Insurance Examiner II .....................................................................................No 3508 Insurance Specialist I ......................................................................................No 3509 Insurance Specialist II .....................................................................................No 3512 Insurance Specialist III ....................................................................................No 1596 Investment Specialist-Treasurer .....................................................................Yes 8525 Law Enforcement Captain................................................................................No

8541 Law Enforcement Investigator II......................................................................Yes

6373 Maintenance Repairman.................................................................................Yes 2209 Management Analyst I ....................................................................................Yes

2041 Office Automation Specialist I .........................................................................Yes

0129 Office Operations Supervisor II ........................................................................No

1015 Personnel Services Specialist ..........................................................................No 1006 Personnel Technician I....................................................................................Yes

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Class Overtime Code Class Title Pay 1009 Personnel Technician II ...................................................................................No 1012 Personnel Technician III ..................................................................................No

3742 Public Information Director .............................................................................No

3721 Publications Production Specialist II ...............................................................Yes

0812 Purchasing Agent II .........................................................................................No

0130 Records Administrator .....................................................................................No

1334 Research & Training Specialist ........................................................................No

6360 Utilities & Maintenance Superintendent II .......................................................No

6321 Print Shop Supervisor II ..................................................................................No 6311 Printer II.........................................................................................................Yes 0939 Property Administrator I .................................................................................Yes 0945 Property Administrator III ................................................................................No

3738 Public Information Specialist ..........................................................................No

0809 Purchasing Agent I .........................................................................................Yes

0818 Purchasing Specialist ......................................................................................No

5312 Registered Nursing Consultant ........................................................................No 3551 Reinsurance/Financial Specialist ....................................................................No 3120 Research Assistant ..........................................................................................No

3546 Risk Management Program Administrator........................................................No 3545 Risk Management Program Specialist ..............................................................No 8713 Safety Program Manager..................................................................................No 8705 Safety Specialist .............................................................................................Yes 0105 Secretary Specialist ........................................................................................Yes 8200 Security Guard...............................................................................................Yes 8701 Senior Actuarial Analyst ..................................................................................No 0008 Senior Clerical Supervisor ..............................................................................Yes 0004 Senior Clerk ...................................................................................................Yes 4009 Senior Consumer Complaint Analyst ..............................................................Yes 8464 Senior Crime Laboratory Analyst ....................................................................Yes 2224 Senior Management Analyst I ..........................................................................No 2225 Senior Management Analyst II .........................................................................No 0093 Senior Word Processing Systems Operator......................................................Yes 0120 Staff Assistant ................................................................................................Yes 3112 Statistician II...................................................................................................No 3117 Statistician Supervisor II .................................................................................No 0918 Storekeeper I ..................................................................................................Yes 0921 Storekeeper II .................................................................................................Yes 2113 Systems Programmer II...................................................................................Yes 2115 Systems Programmer III..................................................................................Yes 2117 Systems Programming Administrator ..............................................................No 2107 Systems Project Analyst...................................................................................No 2039 Telecommunications Administrator..................................................................No 2031 Telecommunications Specialist I .....................................................................Yes 2034 Telecommunications Specialist II ....................................................................Yes 2035 Telecommunications Specialist III ...................................................................Yes 6582 Telecommunications Systems Consultant .......................................................No 1330 Training Manager ............................................................................................No 6004 Training & Research Manager..........................................................................No

0090 Word Processing Systems Operator ................................................................Yes 0096 Word Processing Systems Operator Supervisor ...............................................Yes 3328 Workers’ Compensation Administrator.............................................................No

154

Class Overtime Code Class Title Pay 3312 Workers’ Compensation Examiner ..................................................................Yes 3322 Workers’ Compensation Specialist ..................................................................Yes 3323 Workers’ Compensation Specialist Supervisor..................................................No

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Overtime for Included Law Enforcement Employees (Law Enforcement) In order for the Department of Insurance to meet the needs of the people and businesses affected by natural disasters or other emergencies, the Department is committed to providing the best possible service. To that end, work schedules must be flexible and responsive to the needs of our consumers. It is hereby provided that law enforcement departmental employees filling “Included” positions (non-exempt from the FLSA) will be compensated in accordance with the provisions of Article 23, Section 1(B) of the PBA Law Enforcement Agreement. SECTION 1–Overtime (B) Work beyond the normal workweek or approved extended period shall be recognized in accordance with Chapter 60K-5, Personnel Rules of the Career Service System; provided, however, that when an emergency is declared by the Governor and funds are available, employees who are assigned to the emergency area described in the Governor’s Executive Order shall be subject to a forty (40) hour workweek while so assigned. The State and the Association will cooperate to secure funds for the payment of overtime to Unit employees in the situation described herein. The Commissioner or his designee may put this plan into effect during times of natural disasters and their aftermath or other emergencies. The plan shall apply only to those employees filling “Included” positions who are assigned to the to the emergency area and perform duties and responsibilities related to a natural disaster or other emergency.

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Review and Improvements

By May 15th of each year, a review of the manual will be completed and necessary changes made based upon the prior year’s experience. The Department’s Emergency Coordinating Officer will coordinate the review. By May 15th of each year, all telephone numbers will be updated. (Emergency Coordinating Officer)

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8

Appendix 6B: Missouri Department of Insurance Sample Disaster Response Plan Missouri Department Of Insurance State Disaster Response Plan

In the event of a natural or other disaster which would require an extraordinary response by the State Insurance Department, the State of Missouri has adopted the following plan in advance to respond quickly and effectively to meet the insurance information needs of its citizens, and to coordinate Departmental resources with other state agencies in mitigating the effects of the disaster. Activation of the plan will be implemented at the call of the state Insurance Director or his designee.

Table of Contents Section Title Page I. Disaster Standing Committee

A. Command Post B. Communications Network C. Regional Offices D. Consumer Information Task Group E. Media Relations Task Group

II State Emergency Response Team Activities

III. Contacts

A. Purpose and Scope B. Response Team Operations C. Recovery and Damage Assessment Operations D. Emergency Licensing of Adjusters E. Disaster Recovery Centers F. Discussion List – Company Readiness

A. Command Post Contacts B. Consumer Hotline Information C. General MOMDI Contacts D. Emergency Management Assistance Compact E. Key Person Contact List –Missouri Association Contacts F. Missouri Industry Contacts G. Public Relations Contacts

159

IV. Appendices

A. Consumer Tips

B. Sample Press Releases – Flood, Tornado, Earthquake C. Emergency Rule D. Emergency Adjuster Applications E. Emergency Management Assistance Compact F. Emergency Mutual Aid Compact G. Life and Health Detailed Questions and Answers H. Property and Casualty Detailed Questions and Answers I. State of Missouri Terrorist Incident Response Plan J. State of Missouri Emergency Operations Plan – SEMA

A. General Disasters B. HMO Questions and Answers C. Life and Health Questions and Answers D. Property and Casualty Questions and Answers E. When Tornadoes Strike F. Flood Tips G. When Earthquakes Strike H. When Terrorism/War Strikes

160

MDI Disaster Plan Section I Contents Disaster Standing Committee Page

B. Communications Network

Command Post Task Group

Purpose

Composition

General – Committee and Response Levels

A. Command Post Purpose Location Composition Duties

Purpose

Speakers Bureau

C. Regional Office(s) Purpose Location Duties

D. Consumer Information Task Group

Location Composition Communications

E. Media Relations Task Force Purpose Action Items

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Section I – Disaster Standing Committee

Financial Regulation

Adjuster Licensing

If the Department’s operations are significant enough to involve a large number of individuals and agencies, the Chair may elect to establish a Command Post.

Chief Deputy Director, Chair of Standing Committee Director of Market Regulation, Disaster Coordinator Deputy Director of Market Regulation, Asst. Disaster Coordinator Information Systems SEMA Public Information Officer Supervisor, Property and Casualty Director, Consumer Affairs

Legal

Designated Principal Assistant

Upon notification of a significant disaster involving multiple Divisions of the Missouri Department of Insurance, the Chair should activate the Disaster Standing Committee. The purpose for this activation, should a significant disaster occur, is to insure an orderly flow of information between separate Divisions and Task Groups within the Department, to insure that efficient use of resources is maximized and any duplication between divisions removed. The committee should meet initially at a location specified by the chair or meet on a conference call initiated by the Chair. The Committee should implement the State of Missouri Emergency Operations Plan (SEOP). Appointments should be made to the specified task groups and assignments made. After appointments are made to each Task Area, updates on field and office activity will be forwarded to the Chair, or his designee, by the Task Leaders, giving updates on all activities and assignments. The Chair will then, on a routine basis, update the Director on the Department’s operations. Requests for additional departmental assistance shall be forwarded to the Chair, or his designee, for assignment.

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Proposed Response Levels

Prior to initiating the Command Post, the Standing Committee must determine the response required by the catastrophe. The Department of Insurance has identified four major categories.

1. The first level is major damage to property but with only isolated individuals

affected. For example hail or wind damage to a few homes in an area could be deemed the first level. The Department would track the individual claims to see that they were properly handled by the insurers.

2. The second level would be severe damage to a small geographic area such as

a group of homes and/or property with many individuals affected. There will be general concern within the department and the claims will be carefully tracked. Depending on the severity of the damage the Department may or may not send personnel to the area.

3. The third level is one of catastrophic damage covering a wide area. This would

be damage such as small floods, tornadoes that hit heavily populated areas, and earthquakes. Large numbers of people and area will be involved and will require a mobilized effort by the MDI to insure that the insureds are made ‘whole’. Press releases and supervision over the claims adjusters will be required. SEMA will probably be involved at this point. There may or may not be a Governor’s declaration.

4. The fourth and final level would be a catastrophe of a proportion such as the

terrorist attacks on the World Trade Center and the Flood of 93. The impact upon the industry and the insureds will be of such nature that SEMA and possibly FEMA will then become directly involved. The Governor will have declared these areas ‘disaster’ areas and MDI will work through SEMA during the recovery process.

163

A.) Command Post (for Command Post contact list, see Section III)

1. Purpose: To quickly establish a command post and necessary numbers and

locations of field offices following the occurrence of a disaster. The Command Post should immediately function to transfer useful information to consumers in the affected area, while assisting the insurance industry in promptly assessing the size and extent of the damage.

2. Location: The command post will be located in the Truman Building, 5th Floor MDI

Offices. 3. Composition: The command post and the regional offices will have the same

composition to insure consistency in the information and services provided. The difference between the command post and the regional offices in this regard is that the individuals in the command post will have greater responsibility in managing the flow of information. Thus, those in the command post will be, in most instances, from the highest levels of the Department and from the top of the industry’s coordinating team. Where possible, the Department’s representative will either be the Director or his/her designee. Every effort will be made to assure that the appointed “staff person” will have some media experience.

4. Duties: One of the principal responsibilities of the Command Post will be to operate

as the main communication conduit between the State Emergency Management Agency (SEMA) and Emergency Response Team (SERT) operations, MDI, the general public, the media, the insurance industry, etc. To perform in this capacity, those responsible for establishing the command post will need to develop several functions well before a disaster occurs. A contact list of the state agency people, members of the media and insurance industry personnel should be put together so those in charge can quickly begin assessing the problems and respond to them. Additionally, a speakers bureau to address the need to quickly get insurance claims information to those in the affected area should be established (see below). To facilitate these items and the other matters that need to be considered, such as the procedures for handling different types of catastrophic events, a command post group should be appointed immediately for a predetermined period of time.

164

B.) Communications Network 1. Purpose: To establish a communications network that will link consumers with

insurance companies and the Department of Insurance whenever a catastrophic event occurs.

2. The Command Post Task Group will be charged with the responsibility of creating a “contact list” for quickly contacting people within the insurance industry, preferably individuals with the national trades and the state domestic trade so a large audience can be reached with just a few calls. Additionally, a contact person with two or three of the major property writers within the state should be part of the list as well. The list should also have a contact person with both the “Media Relations Task Group” and the “Consumer Information Hotline Task Group” (see end of this section) individuals with key state agencies should also be added.

3. Speakers Bureau: Another responsibility of the Command Post Task Group will be to develop a “speakers bureau” to quickly operate in the affected areas to answer questions at town meetings and other informational gatherings. The speakers bureau would act to supplement information provided through the media and other sources on how to quickly and effectively prepare insurance claims information. In order to facilitate the communication net, the command post will need to prepare an action plan for installation of phones at both the command post as well as all of the field offices. This should probably be undertaken in concert with the people from SERT so not only a coordinated approach is taken, but also an opportunity is created for using that agency’s phones in the early hours of any disaster.

165

C.) Regional Office(s)

Purpose: The St. Louis and Kansas City offices will be charged with addressing problems, solving them where possible and overseeing operations in the geographic areas where the regional office is responsible. While the composition and the basic duties will be the same as those of the command post, the regional office(s) will deal with the local problems and handle them from a closer vantage point. Where serious disputes or problems arise, the regional office will forward these back to the command post; otherwise, the regional office will manage their own operation and report only. It is imperative that ______ and _____ remain at the Regional Office Operations center for command purposes. These centers will fall under the direction of the Command Post.

Location: Regional offices will be established at the existing location of the regional offices, unless indication from the Command Post shows a more appropriate location.

Duties: The regional office(s) will be charged with channeling information within the zone the office(s) has responsibility for. All requests for speakers, press contacts, and general insurance information will come through the Public Information Officer at the Central Office. Additionally, all written material explaining how to prepare claims will be available through these outlets as well. The regional office(s) will routinely report to the command post on daily activities. All problems that cannot be worked out locally will be sent to the Command Center for review. Department brochures (see Section II) or Disaster Response should be made widely available throughout regional office(s). Regional Office(s) Pool Members

MDI–St. Louis Office MDI–Kansas City Office _________, Manager __________, Manager Wainwright Building 111 N. 7th St., Room 229 615 E. 13th St., Room 510 Kansas City, MO 64106 St. Louis, MO 63101 PHONE: ( ) – PHONE: ( ) – FAX: ( ) – FAX: ( ) –

166

D.) Consumer Information Task Group The following are procedures to establish a consumer hotline in the event of a disaster in this State. The hotline will provide general information on insurance and will put the consumer in touch with their insurance company. Consumers should be encouraged to first contact their insurance agent, or failing that, their insurance company. Hotline:

A) Purpose: 1) Provide consumers with information needed to get in touch with their insurance companies and the requisites to file a claim; and 2) convey necessary information to the Command Post and regional office(s).

B) Location: The central hotline is located in the offices of the Director of

Consumer Services. C) Composition: If a disaster is declared, the hotline should be immediately

activated. The hotline should become a 24-hour service utilizing four six-hour shifts.

Regional offices might initially be made operational through the use of

standby cellular telephones until wired phone links are dropped and established.

D) Communications: The hotline staff should have a list of 800 numbers of the

major property/casualty insurers in the state as well as the list of Command Post Regional Offices and other emergency agency numbers to be used in the event of a disaster. A communication telephone tree should be established to notify hotline workers what shifts they will be staffing after the Department of Insurance has declared a disaster. Hotline staff will also be provided with a communications kit, which will be used to inform consumers about the claim procedures.

167

E.) Media Relations Task Group

1.) Purpose: The purpose of this task group is to create a central source for media information relevant to disaster insurance and the Disaster Plan Response activities. It should prepare news releases on steps to take before, during and after a disaster; produce brochures on preparedness (see Section II for suggested consumer guides); dispatch speakers to various locations as needed (see Section II B); and maintain contact with all media.

2.) Activities: The Group should distribute its advisories and brochures to units of government throughout the state so that they may reproduce them for local residents. The NAIC should be contacted for assistance in bulk reproduction. The Media Relations Group should be in constant contact with SERT to coordinate media announcements.

The Group should contact news organizations throughout the state with a Media Advisory. This Advisory notifies news agencies that the Missouri Department of Insurance is the primary source for obtaining and forwarding information relative to insurance and a disaster.

Much of the information will be obtained from designated liaison persons stationed at each command post. The Media Task Group should be in constant touch with the command post and regional offices to coordinate the information flow. This system is to make sure that information being supplied to the media is consistent, accurate and up-to-the-minute.

3.) Composition: Representatives of trade groups, as well as media specialists

employed by the member insurance companies, should augment forces as needed. A list of the pool available should be compiled and continually updated with this manual.

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MDI Disaster Plan Section II Contents

B. State Emergency Response Team Operations

2) Notification Route

4) Operating Procedures for the MDI Staff

C. Recovery and Damage Assessment Operations

E. Disaster Assistance Centers

State Emergency Response Team Activities

Page A. State Emergency Response Team Operations–

• Purpose and Scope

1) Initial Response

3) Definitions

D. Emergency Licensing Adjuster Information

• Disaster Recovery Center Form

F. Discussion List–Company Readiness

169

Section II State Emergency Response Team Activities

A. Standard Operating Procedures In Support of State Emergency Response Team Purpose and Scope The following information is intended to be used as a guideline by those agencies directly and indirectly involved in fulfilling responsibilities as identified in the State of Missouri Emergency Operations Plan (SEOP). It is hoped this document will clarify and identify lines of communications and command procedures that interface with existing procedures by other agencies. The initial notification of impending or current status will come from the State Emergency Management Agency (SEMA) to ____, _____, or _____. Notification of other personnel shall follow Department SOP’s.

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B. State Emergency Response Team Operations 1.0 Initial Response The following information is intended to inform all personnel of the operational procedure to be followed for SERT operations by the above listed divisions. All divisions within Department of Insurance that may be called upon to assist during SERT emergencies or during recovery missions should be informed as to the command and control procedures used by this division which has the designated responsibility of direction and control for emergency personnel during disasters. 2.0 Notification Route Notification shall follow the same route as the current chain of command, starting with the Deputy Director.

Statewide Emergency Plan activated Procedures:

1. State EOC and MDI operations fully staffed. 2. Field staff instructed to respond to assigned areas. 3. Computer listing of all resources updated. 4. Staging areas activated.

Recovery Operations

All appropriate employees must use command and control procedures already in place in the disaster area. We suggest that training be made available to make involved personnel aware of this management system.

3.0 Definitions The following abbreviations and terms are intended for use within this document in conjunction with internal procedures already agreed upon by the Missouri Department of Insurance.

3.1 ACS Area Command Sites 3.2 DEM Division of Emergency Management, Department of Crime Control and Public Safety

3.3 MDI

Missouri Department of Insurance

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3.4 LEOC Local Emergency Operations Center. A team of 2-4 OEMS and MDI personnel will be assigned to local EOC. They should alternate 12-hour shifts, monitor activity and relay requests/information to OPERATIONS. These persons will also be utilized “on scene” as necessary.

Standard Operating Procedures

4.0 Operating Procedures for the MDI Staff

4.1 “Activation” requires that staff member(s) make lodging arrangements and report to location specified when notified of “activation”.

4.2 Upon arrival at specified location (EOC or field) the staff member(s) report to Command and advise Command of purpose in being at location.

3.5 SEOC State Emergency Operations Center

3.6 SOP

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C. Recovery and Damage Assessment Operations

In the event of a catastrophe, either localized or covering large regions, it becomes necessary to assist in gaining quick and necessary information concerning the magnitude of the disaster. This assists in determining information for Federal Declaration of Disaster, as well as assisting insurance industry personnel in preparing to serve the consumers needs. In this situation, the State Emergency Management Agency may call upon the Dept. of Insurance, through it’s Emergency Response Team (SERT) agreements, to establish assessment teams, which are staffed by Department of Insurance Personnel. These teams may be established upon request of the Dept. of Insurance’s Command Post established under this plan, or upon request of the State Emergency Management Agency (SEMA).

D. Emergency Licensing Adjuster Information

The Missouri Department of Insurance has in place an emergency rule governing the registration of adjusters for services in areas designated as disaster or catastrophic zones. The purpose of this rule is to assist the Governor in the performance of his duties under Chapter 44.RSMo, and to prevent unscrupulous persons from taking advantage of the insurance buying public with regard to the current emergency arising from the recent disaster and/or catastrophic events.

Under this rule no person may operate as an adjuster in a currently designated disaster area unless they have registered with the Missouri Department of Insurance and holds a temporary disaster adjuster license. Each licensed adjuster will be issued an identification card. This card must be exhibited to any prospective client.

E. Disaster Recovery Centers (DRC’s)

In the event of a catastrophe, either localized or covering large regions, it becomes necessary to assist consumers in gaining quick and necessary information and assistance for their insurance needs. These needs may range from questions of coverage, to information on obtaining construction contacts and quotes. In this situation, the State Emergency Management Agency may call upon the Department of Insurance, through it’s Emergency Response Team (SERT) agreements, to establish Disaster Assistance Centers, which are staffed by Department of Insurance personnel, as well as insurance industry professionals. This center’s (DRC’s) may be established upon request of the Department of Insurance’s Command Post established under this plan, or upon request of State Emergency Management Agency (SEMA). In either case, the number and location of these centers shall be specified.

The Consumer Services Division shall work to set up and man these DRC’s by assigning appropriate Departmental personnel, as well as requesting and providing for assistance from insurance companies. The Consumer Services Division shall maintain a call up list of personnel, both departmental and industry, who may serve at various locations in this capacity. Whenever possible, these DRC’s shall be established in conjunction with existing field offices.

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DRC Center Available Personnel

Name Work Phone

Association

Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance

Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance

Dept. of Insurance

Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance Dept. of Insurance

Dept. of Insurance

Dept. of Insurance

Dept. of Insurance

Dept. of Insurance

Dept. of Insurance

Please note that all ‘volunteers’ will be appropriately trained to answer the questions expected to be posed during a catastrophe. They will be given a handbook of ‘cookie-cutter’ answers that are relevant to Missouri to prevent confusion with other state regulations. This handbook is attached as Appendix C in this ‘Plan’.

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Discussion List Company Readiness Identification Guide Priorities companies: Use our current skill sets in financial analysis to identify those companies subject to risk of disaster situation. For both foreign and domestic possibly survey those that may be in trouble.

• Identify those key components of potential priority companies

Information systems Large exposure to certain losses; e.g. Trade center situation Politically sensitive targets; e.g. Insurers in holocaust situation

• Identify actions to take to assist companies: What remedies do we want

• Identify what to do after a company has developed such disaster-related problems

• Identify what types of companies are more important during disasters of different types

• Identify what service if any DFR can undertake in the event of a disaster

• Establish communication with the troubled company in the time of disaster.

• Establish the necessary contacts and system to work with other state and federal regulations

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MDI Disaster Plan Section III Contents Contacts Page

A. Emergency Command Post Contact List

B. Consumer Information Hotline Numbers

C. MDI Contacts

• Company Services Group

E. Key Person Contact List–Missouri Insurance Association Contacts

F. Missouri Industry Contacts

G. Public Relations Contacts

• Administration

• Technical Services Group

D. EMAC

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Section III Contacts A.) Emergency Command Post Contact List

Name Office #

177

B.) Consumer Information Hotline Numbers

Name/Association Phone Number

(573) 214-4265 or (573) 214-4366

American Security Insurance

(800) 374-1111

State Farm Mutual Automobile

(877) 278-4506

(206) 545-5681

National Union Fire of Pittsburgh No specific phone #

(800) 526-1547

American Standard Ins. of Wisconsin (800) 374-1111

(800) 394-0856

Farm Bureau Town & Country (877) 322-5246

(800) 442-0591

Allstate Insurance (800) 547-8676

(888) 344-4343

FEMA (800) 462-9029

National Flood Insurance Program (800) 638-6620

Shelter Mutual

(800) 421-3535

American Family Mutual

(877) 278-4506

State Farm Fire & Casualty

Safeco Insurance Co. of America

Federal Insurance (800) 252-4670

Automobile Club Inter-Ins Exchange (800) 222-7623, x5365

Liberty Mutual Fire Insurance

Mid Century Insurance

Missouri Employers Mutual

Farmers Alliance Mutual

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C.) Missouri Department of Insurance Contacts

530 Truman Building, Jefferson City, MO 65101 (573) 751-4126

Emergency and/or Security. . . . . . .(573) 522-2222

Administration Director of Insurance ( ) – Assistant Director ( ) – Deputy Director ( ) – Legal Department ( ) – ( ) – Legislative Counsel ( ) – Media Relations Director– ( ) – Support Services Supervisor – ( ) –

Mdi–St. Louis Office Mdi–Kansas City Office _________, Manager ____________, Manager Wainwright Building 111 N. 7th St., Room 229 615 E. 13th St., Room 510 Kansas City, Mo 64106 St. Louis, Mo 63101 Phone: ( ) – Phone: ( ) – Fax: ( ) – Fax: ( ) –

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Division of Financial Regulation Director – ( ) – Financial Examination Assistant Chief Financial Examiner – ............................................................ ( ) – Health Organizations/Company Analysis Supervisor – Managed Care – .......................................................................... ( ) – Self-Insured Workers’ Compensation Analysis Supervisor - .................................................................................................... ( ) – Information Systems Director –........................................................................................................ ( ) –

Consumer Services Consumer Services

Director –........................................................................................................ ( ) –

Investigations Supervisor – ( ) –

Technical Services Group Life & Health Supervisor –.................................................................................................... ( ) – Managed Care & Health Benefits Supervisor – ................................................................................................... ( ) – Market Examinations Director Of Market Regulations –..................................................................... ( ) – Property & Casualty Supervisor – .................................................................................................. ( ) – Licensing Supervisor – .................................................................................................. ( ) – Claims ( ) Supervisor – .................................................................................................. ( ) – The email address for MDI employees is: [email protected]–the USERID is the first initial followed by the last name not to exceed 8 characters (be sure to use lower case letters).

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Emergency Management Assistance Compact The Emergency Management Assistance Compact (EMAC) is a mutual aid agreement and partnership between states that exists because, from hurricanes to earthquakes and from wildfires to terrorism, all states share a common enemy: the constant threat of disaster. EMAC allows states to assist one another during emergencies. Out of state aid through EMAC helps fill the shortfalls that appear when state and local resources are overwhelmed and federal assistance is either unavailable or inadequate. EMAC establishes a firm legal foundation by ensuring that states that offer help will be reimbursed for their expenses. EMAC also provides fast and flexible assistance. A state is not obligated to help if they are unable to and these procedures also dispense with bureaucratic wrangling.

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E.) Missouri Insurance Association Contacts Missouri Insurance Coalition 220 Madison St–3

Director of Government Affairs: Brent Butler

Fax: (573) 893-4996

rd FloorJefferson City, MO 65101 Executive Director: Calvin Call

Phone: (573) 893-4241

E-mail Address: [email protected] Internet Address: www.moinsurancecoalition.com Missouri Association of Insurance Agents 2701 Industrial Drive Jefferson City, MO 65109

Phone: (573) 893-4301 Executive Vice President: Larry Case

Fax: (573) 893-3708 E-mail Address: [email protected] Internet Address: www.missouriagent.org Missouri Association of Mutual Insurance Companies PO Box 864 Sikeston, MO 63801

President/General Manager: Ron Borders Phone: (573) 471-1534 Fax: (573) 471-8618 E-mail Address: [email protected] Internet Address:

National Association of Mutual Insurance Companies 3601 Vincennes Rd Indianapolis, IN 46268 Key Executive: Larry Forrester Chief Communications Officer: Charles Chamness Phone: 317-875-5250 Fax: 317-879-8408 E-mail Address: [email protected] or [email protected] Internet Address: www.namic.org

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http://www.missouriagent.org/



Insurance Services Office 2828 E. Trinity Mills Road, Suite 315 Carrolton, TX 75006 Assistant Regional Manager: Don Beckel Phone: 214-390-1825 ext. 224 Fax: 214-390-1975 E-mail Address: [email protected] Internet Address: www.iso.com National Association of Independent Insurers 2600 River Road Des Plaines, IL 60018 Counsel: Ann Weber Phone: 847-297-7800 ext. 320 Fax: 847-297-5064 E-mail Address: [email protected] Internet Address: www.naii.org American Insurance Association 5750 Old Orchard Rd., Suite 340 Skokie, IL 60077 VP-Midwest Region: Paul Blume Phone: 847-470-1070 Fax: 847-470-1414 E-mail address: [email protected] Internet address: www.aiadc.org Alliance of American Insurers 3025 Highland Parkway, Suite 800 Downers Grove, IL 60515 State Manager: Kirk Hansen Phone: 630-724-2125 Fax: 630-724-2190 E-mail Address: [email protected] Internet-Address: www.allianceai.org

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Insurance Information Institute 110 William Street New York, NY 10038 Key Executive: Gordon Stewart Phone: 212-669-9200 Fax: 212-791-1801 E-mail Address: [email protected] Internet Address: www.iii.org Missouri Insurance Guaranty Associations 994 Diamond Ridge, Suite 102 Jefferson City, MO 65109 Contact: Chuck Renn, Executive Director Phone: (573) 634-8455 Fax: (573) 634-8488 E-mail Address: Internet Address:

11439 Gravois Road

Contact: vacant

National Council on Compensation Insurance (Ncci)

St. Louis, MO 63126-0530

Phone: (314) 843-4001 Fax: (314) 842-3188 E-mail Address: Internet Address: www.ncci.com

FAIR Plan 906 Olive St., Suite 1000 St. Louis, MO 63101 Manager: David Reuter Phone: (314) 421-0170 ext. 111 Fax: (314) 421-2575 E-mail Address: Internet Address: Missouri Association of Insurance & Financial Advisors PO Box 1729 Jefferson City, MO 65102-1729 Key Executive: Lori Smith Phone: (573) 634-5205 Fax: (573) 634-5954 E-mail Address: [email protected] Internet Address: www.maifa.com

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http://www.iii.org/


http://www.maifa.com/

F.) Missouri Industry Contacts 1. State Farm Public Relations Officer: Ron Roberts, Regional Public Affairs Manager Phone number: (573) 499-2111 E-mail: [email protected] Address: 4700 South Providence, Columbia, MO 65217-9987

Phone number: (573) 499-2278

E-mail:

Supervisor of Claims/Adjuster: Brent Moyer, Regional Catastrophe Coordinator

E-mail: Address: 4700 South Providence, Columbia, MO 65217-9987

Corporate Officer in Charge: Michael E. Staloch, Regional Vice President–Operations Phone number: (573) 499-2032

[email protected] Address: 4700 South Providence, Columbia, MO 65217-9987 2. American Family Public Relations Officer:

Phone number:

Address: 3.

Phone number: E-mail: Address: Supervisor of Claims/Adjuster:

E-mail:

Zurich Insurance Group/Farmers Insurance Group

Phone number: (816) 361-6222 Public Relations Officer: Jim Swope, Executive Director of the State of Missouri

E-mail: [email protected] Address: 9237 Ward Pkwy, Suite 230, Kansas City, MO 64114 Supervisor of Claims/Adjuster: Ken Brown, Catastrophe Claims Zone Manager Phone number: 888-344-4343 Ext 67174 E-mail: [email protected] Address: PO Box 2968, Shawnee Mission, KS 66201-1368 Or Mark Lee, Claims Manager (Missouri) Phone: (800) 231-2449 E-mail: [email protected] Address: 721 Emerson Rd., Suite 600, St. Louis, MO 63141-0919

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4. Shelter Insurance Companies Public Relations Officer: Joe Moseley, Vice President, Public Affairs Phone number: (573) 214-4324 E-mail: [email protected] Address: 1817 West Broadway, Columbia, MO 65218 Supervisor of Claims/Adjuster: Rick Means, Vice President, Claims Phone number: (573) 214-4242 E-mail: [email protected] Address: 1817 West Broadway, Columbia, MO 65218 5. Safeco Insurance Group Public Relations Officer: Mary Eversole, Public Relations Representative Phone number: 206-925-0863 E-mail: [email protected] Address: Safeco Plaza, Seattle, WA 98185 Supervisor of Claims/Adjuster: Rick Summerlin, Catastrophe Manager & Claims Analyst Phone number: (314) 957-4428 E-mail: [email protected] Address: 3637 Geyer Road, St. Louis, MO 63127 Corporate Officer in Charge: Clifford Duever, Assistant Vice President Phone number: (314) 957-4660 E-Mail: [email protected] Address: 3637 Geyer Road, St. Louis, MO 63127 The Department can also contact the following person for any additional information: John G. Graf, Managing Claims Analyst Phone number: (314) 957-4591 E-mail: [email protected] Address: 3637 Geyer Road, St. Louis, MO 63127 6. Allstate Insurance Public Relations Officer: Joanne Draper, Corporate Relations Manager Phone number: 303-779-3774 E-mail: [email protected] Address: 5500 S. Quebec St. Suite 350, Englewood, CO 80111 Supervisor of Claims/Adjuster: Tom Gay, Claims Administration Phone number: 303-779-3902 E-mail: [email protected] Address: 5500 S. Quebec St Suite 250, Englewood, CO 80111 Corporate Officer: Richard Turano, Regional Counsel Phone: 303-779-3723 E-mail: [email protected] Address: 5500S. Quebec St Suite 250, Englewood, CO 80111

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mailto:abrp8@allstate



7. Citigroup/Travelers Public Relations Officer: Gregory P. Bova, Service Center Manager Phone number: 913-469-4515 E-mail: [email protected] Address: 7600 College Blvd., Overland Park, KS 66210 Senior Vice President–Claims: Bill Kiesler Phone number: 480-473-7777 E-mail: [email protected] Address: 8. American International Group Senior Vice President/General Counsel: Michael J. Cassanego Phone number: 818-704-3751 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Senior VP – Dean E. Stark Phone number: 818-704-3602 E-mail: [email protected] Address: 9. Liberty Mutual Regional Vice President: Charles Fellows Phone number: 317-816-3583 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Vice President – Claims: Anthony Kounalis Phone number: 800-840-2242 E-mail: [email protected] Address: 10. CNA Public Relations Officer: Heather E. Davis, Vice President–Government Relations Phone number: 312-822-1740 E-mail: [email protected] Address: CNA Plaza, Chicago, IL 60685 Vice President/Chief Claims Officer: Thomas P. Greason

E-mail: Phone number: 800-331-6053

[email protected] Address:

187








11. Progressive Public Relations Officer: Mark Arnell Phone number: (314) 587-2503 E-mail: [email protected] Address: 4 City Place #200, St. Louis, MO 63141 Supervisor of Claims/Adjuster: Jon Kaiser

E-mail: Jon Phone number: (314) 587-2549

[email protected] Address: 4 City Place #200, St. Louis, MO 63141 Corporate Officer in Charge: Mark Arnell Phone Number: (314) 587-2503 E-mail: [email protected] Address: 4 City Place #200, St. Louis, MO 63141 12. CGU Insurance Group Catastrophe Manager: Stephen Tracewski

E-mail: Phone number: 617-725-7763

[email protected] Address: Supervisor of Claims/Adjuster: Ron Clifton Phone number: 866-923-2266 E-mail: [email protected] Address: 13. St. Paul Group Public Relations Officer: David Monfried, VP, Corporate Communications Phone number: 651-310-6250 E-mail: [email protected] Address: 385 Washington Street, St. Paul, MN 55102 Supervisor of Claims/Adjuster: Wayne Temme, Unit Claim Manager Phone number: (314) 909-2683 E-mail: [email protected] Address: 10777 Sunset Office Dr. Ste 200, St. Louis, MO 63127 Main Contact: Michael Marino, Regional Manager Phone number: 972-339-4436 E-mail: [email protected] Address: 335 E. John W. Carpenter Freeway Ste 120, Irving, TX 75062

Phone number: 651-310-8834 Corporate Contact: Dean Ramsay, Director, Property Claim

E-mail: [email protected] Address: 385 Washington Street, St. Paul, MN 55102

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14. MO Employers Mutual Insurance Company President and CEO: Dennis W. Smith Phone number: 573-499-9714 E-mail: [email protected] Address:

Phone number: 800-422-0590 Vice President-Policyholder Services: Rodney C. Smith

E-mail: [email protected] Address: 15. Hartford Fire & Casualty Assistant Vice President-Catastrophe Management: Robert J. Wilkey Phone number: 860-547-2502 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Mary Frances Roth Phone number: 860-547-8357 E-mail: [email protected] Address: 16. Chubb & Son Catastrophe Manager: Peter F. Seay Phone number: 800-252-4670, x4334 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Same as above Phone number:

Address:

E-mail:

17. Allianz Insurance Group Public Relations Officer: Bernadette Berger Phone number: 763-582-6099 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Becky Huerta Phone number: 763-765-6255 E-mail: [email protected] Address:

189




18. Missouri Farm Bureau Public Relations Officer: Estil Fretwell Phone number: (573) 893-1467 E-mail: Address: PO Box 658, Jefferson City, MO 65102 Supervisor of Claims/Adjuster: Mitch Rohrbach Phone number: (573) 893-1483 E-mail: [email protected] Address: PO Box 658, Jefferson City, MO 65102 Company Manager: Mike Voiles Phone Number: (573) 893-1439 E-Mail: [email protected] Address: PO Box 658, Jefferson City, MO 65102 19. Nationwide Corporation Director of Information Systems and Services: Kirk Hooten Phone number: 515-245-8982 E-mail: [email protected] Address: Supervisor of Claims/Adjuster: Denise Milby Phone number: 480-948-0505 E-mail: Address: 20. Auto Club Group Public Relations Officer: Mike Right, Vice President of Public Affairs Phone number: (314) 523-7350 ext 6300 E-mail: [email protected] Cell Phone: (314) 614-4582 Pager: (314) 490-3502 Address: 12901 North Forty Drive, St. Louis, MO 63141 Supervisor of Claims/Adjuster: Jim Strike, Director of Claims Phone number: (314) 523-7350 ext. 5365 E-mail: [email protected] Cell Phone: (314) 581-1046 Pager: (314) 407-3502 Address: 12901 North Forty Drive, St. Louis, MO 63141 Corporate Officer: Bob Schreiber, Vice President, Insurance Phone: (314) 523-7350 ext. 5371 E-mail: [email protected] Cell Phone: (314) 614-3186 Address: 12901 North Forty Drive, St. Louis, MO 63141

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G: Public Relations Contacts

Daily Newspapers of Missouri

Blue Springs Examiner dbrendel @examiner.net (816) 229-9161 Boonville Daily News, The [email protected] (660) 882-5335 Branson Daily News, The [email protected] (417) 334-3161 Carthage Press, The [email protected] (417) 358-2191 Clinton Daily Democrat [email protected] (660) 885-2281 Columbia Daily Tribune [email protected] (573) 815-1500 Columbia Missourian [email protected] (573) 882-5714 Constitution – Tribune [email protected]

[email protected] [email protected]

Daily Dunklin Democrat [email protected] (573) 888-4505 Daily Express & News [email protected] (660) 665-2808 Daily Guide [email protected] (573) 336-3711 Daily News, The [email protected] (816) 776-5454

[email protected] (660) 258-7237 Daily Star Journal, The [email protected]

[email protected] (573) 624-4545 Examiner, The [email protected] (816) 254-8600 Fulton Sun Gazette [email protected] (573) 642-7272 Hannibal Courier – Post [email protected] (573) 221-2800 Joplin Globe, The [email protected] (417) 623-3480 Kansas City Daily Record [email protected] (816) 931-2002 Kansas City Star, The [email protected] (816) 234-4125 Lake Sun Leader [email protected] (573) 346-3132 Lebanon Daily Record, The [email protected] (417) 532-9131 Macon Chronicle- Herald [email protected] (660) 385-3121 Marshall Democrat, The [email protected] (660) 886-2233 Maryville Daily Forum [email protected] (660) 562-2424 Mexico Ledger, The [email protected] (573) 581-1111 Moberly Monitor [email protected] (660) 263-4123 Monett Times, The [email protected]

[email protected] [email protected] (417) 667-3344

News and Tribune [email protected] (573) 636-3131 Pulse Legal Publication, The [email protected] (816) 221-2552 Rolla Daily News [email protected] (573) 634-2468 Sedalia Democrat [email protected] (660) 826-1000 Southeast Missourian [email protected] (573) 335-6611 Springfield News Leader [email protected] (417) 836-1109 St. Francois County Daily Journal [email protected] (573) 431-2010 St. Joseph News – Press [email protected] (816) 271-8500

727-6111

St. Louis Post Dispatch [email protected] [email protected] (573) 471-1137 [email protected] (660) 359-2212 [email protected]

(660) 646-2411 Courier-Post, The (636) 949-6928 Daily American Republic (573) 785-1414

Daily News-Bulletin, The (660) 747-8123

Daily Statesmen, The

(417) 235-3135 Neosho Daily News (417) 451-1520 Nevada Daily Mail & Herald

St. Louis Countian [email protected] (314) St. Louis Daily Record [email protected] (314) 421-1880

(314) 340-8000 Standard-Democrat Trenton Republican Times West Plains Daily Quill (417) 256-9191

191

Broadcast

[email protected]

Television Stations KCTV [email protected] KETC [email protected]

[email protected]

KMXQ [email protected] KOAM [email protected] KODE [email protected] KOLR [email protected] KOZK [email protected] KOZK

[email protected] [email protected] [email protected] [email protected]

KTVO [email protected] KYTV [email protected]

Radio Stations

KAHR [email protected] [email protected] [email protected]

KBOA [email protected] KBTC/KUNQ [email protected] KBZI

[email protected] KCHI [email protected]

[email protected] KCMW [email protected] KCPT

KCSX [email protected] [email protected] @kcwj.com

KDAA [email protected] KDBB [email protected] KDCR [email protected] KDEX [email protected] KDKD [email protected]

Associated Press

KGCS KMVC [email protected]

[email protected] KQTV KRCG KSMO KTAJ

KAAN [email protected] [email protected]

KALM– KAOL KBDZ KBNN - @regionalradio.com

[email protected] KCGQ

KCLC

[email protected] KCRV [email protected]

[email protected] KCTV KCUQ KCWJ

192

Appendices A. Consumer Tips

E. Emergency Management Assistance Compact

G. Life and Health Detailed Questions and Answers

B. Samples of Public Releases for Earthquake, Flood, Tornado C. Emergency Rule

D. Emergency Adjuster Application

F. Emergency Mutual Aid Compact

H. Property and Casualty Detailed Questions and Answers

I. State of Missouri Terrorist Incident Response Plan J. State of Missouri Emergency Operation Plan – SEMA

193

Consumer Tips/Fact Sheets and Media Releases

Consumer Disaster Tips F. Flood Tips

• General Safety Information • Salvage and Loss

Page A. General Disasters

• Consumer Tips • Disaster Question and Answer

B. HMO Questions and Answers

C. Life and Health Questions and Answers D. Property and Casualty Questions and Answers E. When Tornadoes Strike

• Insurance Information • National Flood Insurance Questions and Answers

G. When Earthquakes Strike

• Consumer Tips

H. When Terrorism/War Strikes

194

What To Do After An

Insured Homeowners Loss

A: General Disasters – Consumer Tips

When Disaster Strikes:

Consumer Disaster Tips

301 W. High, Room 530

Phone (573) 751-4126


Truman Building Jefferson City, MO 65101

195

Disaster Consumer Tips Before a storm:

• Some residents may qualify for flood insurance through the National Flood Insurance Program, 1-(800) 638-6620

• Take action to protect your property; cover your windows with storm shutters, siding or

plywood. Move vehicles into garages, if possible; otherwise park them near your home and away from trees. Move grills, patio furniture and potted plants into the house or garage. Clear your yard of loose objects that can become missiles. Tie down anything you can’t bring in.

• Review your homeowner’s policy with your agent. Most standard homeowners policies

do not cover flood damage.

• Tenants should consider purchasing coverage for their personal property through

renters insurance. • Property owners should consider whether to insure their property for the replacement

cost or actual cash value. Replacement cost is the amount it would take to rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation. Depreciation is the decrease in home or property value since the time it was built or purchased due to age or wear. Actual cash value is the amount it would take to repair damage to your home after depreciation. Most standard homeowners policies cover the contents of your home on an actual cash value basis. Many insurers offer an option for you to insure your property at replacement cost. The premium may be slightly higher for this coverage, however, you may want to consider the option.

• Make a list of your belongings and record them on film through still photos or

videotape. Include a close-up shot of the day’s newspaper. Keep your inventory list along with purchase receipts, pictures and your insurance policy in a safe-deposit box or other safe place away from your home. If you are forced to evacuate, take a copy of your insurance policy with you.

196

After the storm: • Contact your insurance agent as quickly as possible and ask for instructions on what

to do until your adjuster arrives. • Begin preparing an inventory of personal property damaged or destroyed and take

pictures of the damaged property. • Protect your property from further damage. Your reasonable expenses to protect your

property are part of the loss and are generally reimbursed by insurance companies. Keep all receipts.

• Do not have permanent repairs made until your insurance company has inspected the

property and you have reached an agreement on the cost of repairs.

• If necessary, rent temporary shelter. If your home is uninhabitable because of physical damage, most homeowners’ policies will pay additional living expenses while your property is being repaired. Lack of power or water is not considered physical damage and, therefore, additional living expenses will not be covered. Before renting temporary shelter, check with your insurance company or agent to determine what expenses will be reimbursed.

Common coverage concerns: • Damage to your home from fallen trees is covered under most homeowners’ policies.

Most companies will pay to have trees removed from the damaged structure, such as your home, garage or fence, but will not pay to remove the tree from your yard.

• Damage to your parked vehicle from a fallen tree is covered under your comprehensive

automobile insurance.

• Most homeowners’ policies cover damages to appliances that result from a power surge when power is restored to your home. Some electronic components may not be covered.

• Most homeowners’ policies cover food that spoils due to power loss only if the individual feeder line to your home is down, not in instances of widespread power failure.

• Storm-related injuries to others on your property are covered by most homeowners’

policies under your medical payments coverages.

• Most automobile insurance companies will hold drivers at fault for single car accidents that occur as a result of weather conditions. One insurance point is assigned for accidents resulting in property damage in excess of $1,500. Two insurance points are assigned for accidents resulting in property damage in excess of $1,500 but less than $2,500. Three insurance points are assigned for accidents resulting in property damage of $2,500 or more. Insurance points are separate and have no bearing on DMV points.

197

Missourians are also advised to be on alert for unlicensed public insurance adjusters who may try to do business illegally in our state. If a public adjuster approaches you, ask to see a registration number and a letter from the Missouri Department of Insurance authorizing them to do business in Missouri. Do not do business with adjusters who request money from you in advance. If you wish to report such illegal actions or want to confirm that a public adjuster is licensed, please call the Department of Insurance at (573) 751-4540.

If you have any questions or problems concerning your insurance coverage, contact the Consumer Services Division of the Missouri Department of Insurance at (573) 751-4540.You can also request free copies of the Consumers Guide to Homeowners and Renters Insurance as well as the guide to Auto Insurance.

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Phone numbers and claim procedures: These are the phone numbers and claim procedures for the largest homeowners and auto insurers in Missouri. All insurers ask that you call your agent first, if possible.

Name/Association

(573) 214-4265 or (573) 214-4366

American Security Insurance American Family Mutual (800) 374-1111 State Farm Mutual Automobile State Farm Fire & Casualty (877) 278-4506 Safeco Insurance Co. of America

(800) 252-4670 National Union Fire of Pittsburgh No specific phone #

(800) 222-7623, x5365 Liberty Mutual Fire Insurance (800) 526-1547 American Standard Ins. of Wisconsin

(800) 394-0856 Farm Bureau Town & Country (877) 322-5246 Missouri Employers Mutual (800) 442-0591 Allstate Insurance

(888) 344-4343 FEMA (800) 462-9029 Speech/hearing impaired National Flood Insurance Program (800) 638-6620 Governor’s Consumer Line

Phone NUMBER

Shelter Mutual

(800) 421-3535

(877) 278-4506

(206) 545-5681 Federal Insurance

Automobile Club Inter-Ins Exchange

(800) 374-1111 Mid Century Insurance

(800) 547-8676 Farmers Alliance Mutual

Other important phone numbers: FEMA ............................................. (800) 462-9029 speech/hearing impaired line (800) 462-7585 National Flood Insurance Program .......................................................................... (800) 638-6620 (see also Contacts, Section III)

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Storm Preparation

The Missouri Department of Insurance encourages Missourians to follow these storm preparation tips to avoid severe losses:

• Homeowners should review their homeowners’ policies with their agents. Most standard homeowners policies do not cover flood damage and, in some coastal areas, windstorm coverage may be excluded from the standard policy.

• Many residents qualify for flood insurance through the National Flood Insurance

Program, call 1-(800) 638-6620 for more information. • Tenants should consider purchasing coverage for their personal property through

renters insurance. • Property owners should consider whether to insure their property for the replacement

cost or actual cash value. Replacement cost is the amount it would take to rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation. Depreciation is the decrease in home or property value since the time it was built or purchased due to age or wear. Actual cash value is the amount it would take to repair damage to your home after depreciation. Most standard homeowners policies cover the contents of your home on an actual cash value basis. Many insurers offer an option for you to insure your property at replacement cost. The premium may be slightly higher for this coverage, however, you may want to consider the option.

• Make a list of your belongings and record them on film through still photos or

videotape. Include a close-up shot of the day’s newspaper. Keep your inventory list along with purchase receipts, pictures and your insurance policy in a safe-deposit box or other safe place away from your home. If you are forced to evacuate, take a copy of your insurance policy with you.

• In the event of a storm, take action to protect your property; cover your windows with

storm shutters, siding or plywood. Move vehicles into garages, if possible; otherwise park them near your home and away from trees. Move grills, patio furniture and potted plants into the house or garage. Clear your yard of loose objects that can become missiles. Tie down anything you can’t bring in.

These tips are also available on the Missouri Department of Insurance’s web site, http://insurance.state.mo.us. If you have any questions or problems concerning your insurance coverage, contact the Consumer Services Division of the Missouri Department of Insurance at (800) 726-7390.

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http://insurance.state.mo.us/

General Disaster Questions and Answers

If a tornado, flood, earthquake or other disaster damages or destroys your property, you will likely have many questions and be faced with many decisions. Concerns about temporary shelter, emergency repairs and the costs of restoring or rebuilding your home can be overwhelming; and although you have purchased insurance, it may be difficult to think clearly about filing an insurance claim.

The Department of Insurance has designed this information to answer the questions most commonly asked about settling disaster-related homeowners insurance claims. If, after reading it, you have additional questions or problems that you can’t resolve with your insurance company or agent, please contact us at (800) 726-7390, write us at 301 W. High, Room 530, Truman Building, Jefferson City, MO 65101, or submit a request on-line at http://insurance.state.mo.us. In the event of a major disaster, state and federal agencies will establish Disaster Assistance Centers to provide a variety of disaster relief programs to the public. Information about the location of the disaster assistance center and any toll-free assistance numbers will be published in local newspapers and broadcast on local radio and television stations. How do I report a claim?

If your agent is unavailable or if your insurance company does not have representatives on the scene available to help you, call the company directly and ask for the claims department. The company’s phone number is listed in your policy or can be obtained through the Department of Insurance.

Your insurance agent is the first link between you and your company. Call him or her as soon as possible. After a natural disaster, insurance companies may also communicate the proper procedures for filing a claim via local newspapers, radio or television.

It is very important that you fully understand your rights and responsibilities so that you can take charge of your own situation. If your insurance policy has been lost or destroyed in the disaster or if you are confused about the policy benefits or exclusions, your agent or company will be able to tell you exactly what coverages you have purchased.

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What should I do if my company has not responded to my claim?

In any disaster situation, if is important to get critical facilities such as hospitals and police or fire stations operational right away. Insurance companies will most likely give priority service to these facilities and then to homes that were entirely destroyed. Depending upon the scope of damage to your property, it may be some time before the company representative contacts you. In the meantime, you should begin listing all damaged items that you plan to report.

After you report your loss, the insurance company will assign a company representative to check the damage to your property and determine how much will be paid for your loss. If it is necessary to vacate your home, be sure to report the address and phone number where you can be reached.

What information must I give to the company representative?

Your homeowner’s policy requires you to complete a claim report, which lists all items destroyed, damaged or missing. If you do not have or cannot locate a complete household inventory, try to picture the contents of every room in your home and then list and describe all the items that were damaged or destroyed. Include furniture, major appliances, electronics equipment, pictures or accessories in each room, as well as hobby items such as fishing or camping equipment, tools and other home maintenance items and seasonal items such as holiday decorations or outdoor furniture.

As accurately as possible, try to remember when or where you bought each item, how much you paid for it and how much it will cost to replace it. It is also helpful to include the brand name and model number if you know it.

What services can I expect from the company representative?

The representative may ask to examine all damaged items to prepare a written damage estimate for the company. You may ask for a copy of this report and should not hesitate to ask questions if you don’t understand it or need help in completing the claim form.

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Should I wait for the company’s permission to begin clean-up?

Take photographs to show the way things looked before you began cleaning and repairing and be sure to keep receipts for all of your clean-up expenses. Most homeowners’ policies cover the reasonable costs of emergency clean-up and temporary repairs.

To protect your property from further damage, you should make all necessary temporary repairs, such as boarding up windows and patching holes in walls or roofs, as soon as possible–even if you have not yet seen the company representative. You can also move your personal property to a protected area and begin cleaning and drying items damaged by water. However, you should not dispose of any items that you believe may be a complete loss until the company representative has examined them.

Can I hire someone to make emergency repairs? Probably. Most homeowners policies cover materials and reasonable labor expenses for temporary and emergency repairs in addition to any final repairs made to your property. You should also ask your company representative whether the company would compensate you for work you do yourself Be sure to keep all of the receipts. How should I go about choosing a contractor to make repairs? If at all possible, it is best to hire local rather than out-of-town contractors. In any case, you should make sure that you deal only with established firms or individuals that can provide references and are willing to give you a signed contract. If family members or friends cannot recommend a reputable contractor, check with the local disaster center, your local building code department or the Better Business Bureau for guidance. Obtain written estimates before repairs begin and do not sign any contracts for major repair until the company representative has determined how much damage there is and how much the company will pay. A contractor told me he could do the job faster if I just sign my check over to him. Is that a good idea? No. If the repair work is extensive, the contractor may ask for periodic partial payments as the work progresses, but it is highly unlikely that a reputable contractor would request full payment in advance. The contract should specify that payments would be made as the work is completed. If you have a mortgage on your home, the lending institution may also have specific requirements as to how the insurance funds are expended.

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What if my contractor says the repairs will cost a lot more than the company representative has allowed? If there is a discrepancy over the cost of repairs or the contractor has found hidden damage, you should first contact the company representative and try to resolve the difference. If you are still unable to resolve your differences, contact the Department of Insurance for guidance. Will my homeowner’s policy cover the costs of meeting local/state building codes and ordinances when I repair or rebuild my home? First check with your agent to determine whether your policy includes a building code endorsement that will pay these expenses. In most cases, however, homeowners’ policies do not cover the expense of bringing a house up to code or meeting certain ordinances (including floodplain requirements) if the house did not meet these requirements when it was destroyed. If your policy does not cover these costs, check with the federal agencies at the local disaster center to see if you are eligible for any financial assistance. Isn’t my company obligated to pay for any antique furniture, valuable paintings and expensive jewelry?

Not necessarily. Most homeowners policies place specific dollar limits on items such as jewelry, paintings and silver and will only pay the actual cash value of antiques (which may or may not be equal to their appraised prices). You must purchase additional coverage to fully insure these items. If you have not done so, they may not be fully covered in your regular homeowners policy.

I may have forgotten to include some items m my claim, should I accept a check marked “final payment?” Unless the company has paid the entire limits of your contents coverage, you may be entitled to further reimbursement. It is not unusual for an insurance company to re-open a claim for additional payment. However, it is important that you file an accurate claim in a timely fashion. The damages to my house will cost a lot more than the insurance policy covers. What can I do? Check with the federal agencies at the local disaster center to see if you are eligible for a grant or low-interest loan.

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How will the company pay me? Your policy divides your claim into two separate parts–one for the house itself and one for the personal property or contents. You may also be entitled to reimbursement for additional living expenses. The check or draft for payment for the contents claim will be made out to you. However, the check or draft for the house may be payable to you and your mortgage holder if there is a mortgage on your house. Chances are, you received an advance check immediately after the disaster to cover such items as additional living expenses and clothing. It is important that you keep receipts for all items purchased with this money because when the claim is finally settled, these expenses will be deducted. For example, clothing and personal property receipts will be deducted from the contents check; receipts for living expenses will be deducted from the amount allowed for additional living expenses. Will my homeowner’s policy pay for flood damage to my home? Standard homeowners policies do not cover flood damage. However, if you have a flood insurance policy, your company or the National Flood Insurance Program will assign an adjuster to handle your claim. If your home is not covered for flood damage, you should check with the federal agencies at the local disaster center to see if you are eligible for federal assistance, including grants or low-interest loans. Will my homeowner’s policy pay for earthquake damage to my home? If you purchased an earthquake coverage endorsement, your company will assign a representative to evaluate your damage. If you do not have earthquake coverage, you should check with the federal agencies at the local disaster center to see if you are eligible for financial assistance.

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B: HMO Disasters


Questions and Answers

Phone (573) 751-4126


301 W. High, Room 530 Truman Building

Jefferson City, MO 65101

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How concerned should I be about exclusions such as war or terrorism? Most HMO’s have general exclusions in their filings regarding illness/injury resulting from war. Usually these provisions apply whether or not war is declared. None of these provisions exclude coverage in the event of a natural disaster. There are a few HMO’s such as GHP and BC/BS of KC that have no such exclusionary statements in their benefit documents.

What about other exclusions such as acts of God, government action, strikes, war, riots or hostilities? Some companies have statements in their provider agreements regarding the inability to perform the obligations of the agreement for reasons beyond their control such as acts of God, government action, strikes, riots and/or hostilities. I understand that some companies are planning to incorporate even stronger exclusions, is this true?

Some companies have requested statements to be included in their benefit policies that go far beyond the normal exclusions. These exclusions include fire, explosion, strike, flood, lockout, injunction, breakage of machinery or apparatus, or federal, state or local governmental requirements or restrictions. This language is new and unique and has not been approved by Missouri and plans are to challenge the request.

Do HMO’s have a contractual obligation to cover basic healthcare in the event of natural/unnatural disasters? HMO’s have a contractual and statutory obligation to continue to cover basic healthcare, at least in the event of a natural disaster. That would expand to include acts of war, etc. IF in doing so they are not risking insolvency or bankruptcy. Failure to cover basic healthcare is grounds for revocation of an HMO’s certificate of authority under RSMo 354.470.1(3).

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C: Life and Health Disasters





Phone (573) 751-4126

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Since the disaster I have not been able to locate my (father/spouse/ child) and I fear they have perished. If they have died must their life insurance company honor the claim? Yes. One thing to remember, however, is that life insurance policies require valid proof of loss, usually an original death certificate, before the company is obligated to pay benefits. This may be difficult to obtain quickly, given the circumstances of a disaster. (If appropriate: You must be patient until the government’s infrastructure is again capable of addressing this issue. Some insurers may offer other means which claims can be made in such circumstances.) My father perished in the disaster. I know he had a life insurance policy but I don’t know what company he was insured with. What do I do? Look through any financial records (checking accounts for example) to see if there is a record of any repeated monthly, quarterly, semi-annual or annual payments in equal amounts to a life insurance company. His bank may have duplicate financial records if his were destroyed. You could also ask his close friends and other family members if they have any idea. His life insurance may have been through his employer. Check with his employer to see what coverage it provided for him. Also ask his lawyer, banker and accountant if they know of any life insurance. Find out who sold him his car or home insurance. They may have sold him life insurance. In many cases insurers are required by law to provide annual notices or reports to their policyholders. Watch the mail.

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Because of this disaster I have no money or credit with which to pay my life insurance premium. I have had the policy for quite awhile. Will it be terminated? If it is a whole life or universal life insurance policy it may remain in force without paying premiums for some time. Whole life policies are offered with an option that is called an automatic premium loan provision. If that option was elected it provides for an automatic loan against the policy cash value to pay premiums. Universal life insurance policies deduct the cost of insurance out of the accumulation account. So long as there is enough money in the policy’s accumulation account to pay the monthly cost of insurance the policy will stay in force. You should contact the company as soon as you can to see how long the policy will stay in force if you don’t pay premiums. Term insurance will typically terminate when the premium is not paid within the grace period. I am disabled as a result of this disaster. Will my disability insurance policy pay its benefits even though my employer may not have paid the last premium? Since the policy is designed to pay benefits when you are disabled there is no basis for the insurance company to deny benefits just because of this disaster unless benefits for disabilities resulting from this type of disaster are specifically limited or excluded in the policy. Disability income policies are required to cover claims for disabilities originating prior to the date of policy termination, so even if the policy terminated shortly after you became disabled the policy must still pay its benefits for that disability.

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D: Property and Casualty Disasters



Truman Building Jefferson City, MO 65101

Phone (573) 751-4126

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E. When Tornadoes Strike:

What To Do Regarding Insured Homeowners Loss





Phone (573) 751-4126

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Tornadoes Tornadoes occur in all 50 states, but the Midwest and Southeast are the most vulnerable. Tornadoes are nature’s most violent storms and in seconds, can leave an area devastated. A tornado appears as a rotating, funnel-shaped cloud, striking the ground with whirling winds that could approach 300 miles per hour. A tornado spins like a top and may sound like an airplane or train. Although tornadoes normally travel for up to 10 miles before they subside, 200-mile “tornado tracks” have been reported. Tornadoes can strike at any time of year and often accompany hurricanes. They occur most frequently during April, May and June. Know the terms used to describe tornado threats: • A tornado watch means tornadoes, severe thunderstorms, or both, are possible. Stay

tuned to radio and television reports in your area.

What to do Before a Tornado Strikes

• A tornado warning means you should take shelter immediately. A tornado has been sighted.

2. Have emergency supplies on hand.

1. Know the locations of designated shelter areas in public facilities, such as schools, public buildings and shopping centers.

3. Be sure everyone in your household knows in advance where to go and what to do in

case of a tornado warning. 4. If you live in a single-family house in a tornado-prone area, reinforce an interior

room to use as a shelter—the basement, storm cellar or a closet on the lower level of your house.

5. Make an inventory of your household furnishings and other possessions. Supplement the written inventory with photographs. Keep inventories and photos in a safe deposit box or some other safe place away from the premises.

What to do During a Tornado Watch 1. Whenever severe thunderstorms threaten your area, listen to radio and television

newscasts for the latest information and instructions.

2. Watch the horizon. If you see revolving funnel-shaped clouds, report them immediately by telephone to your local police department or sheriff’s office or Dial 911. Remember that tornadoes can develop rapidly.

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What to do During a Tornado

• In a house or small building, go to the basement or storm cellar. If there is no

basement, go to an interior part of the structure, on the lower level (closets, interior hallways). In either case, get under something sturdy (such as a heavy table) and stay there until the danger has passed.

• In a high-rise building, go to small, interior rooms or hallways on the lowest floor possible.

• If there is no shelter nearby, lilt flat in the nearest ditch, ravine or culvert with your hands shielding your head.

• Do not attempt to flee from a tornado in a car or other vehicle. They are no match for the swift erratic movement of these storms.

When a tornado has been sighted, stay away from windows, doors and outside walls. Protect your head from falling objects or flying debris. Take cover immediately, wherever you are:

• In a school, nursing home, hospital, factory or shopping center, go to pre-designated shelter areas. Interior hallways on the lowest floor are usually safest. Stay away from windows and open spaces. Cooperate with the staff and authorities ---- they have had training about how to deal with emergencies.

• In a vehicle, trailer or mobile home, get out immediately and go to a more substantial structure.

What to do After a Tornado 1. Use great caution when entering a building damaged from high winds.

3. Check for injuries. Do not attempt to move seriously injured persons unless they are in immediate danger of death or further injury. If you must move an unconscious person, first stabilize the neck and back, then call for help immediately.

• Get away from open water.

• Get away from motorcycles, scooters, golf carts and bicycles. Put down golf clubs.

• Put down metal tools.

2. Look out for broken glass and downed power lines.

4. Lightning may follow a tornado, therefore: • Do not stand underneath a natural lightning rod, such as a tall, isolated tree in

an open area. • Do not stand on a hilltop, in an open field or on the beach. • Avoid isolated sheds or other small structures in open areas.

• Get away from tractors and other metal farm equipment.

• Stay away from wire fences, clotheslines, metal pipes, rails and other metallic paths that could carry lightning to you from some distance away.

• In a forest, seek shelter in a low area under a thick growth of small trees. In open areas, go to a low place such as a ravine or valley. Be alert for flash floods.

If you are isolated in a level field or prairie and you feel your hair stand on end (which shows that lightning is about to strike), drop to your knees and bend forward putting your hands on your knees. Do not lie flat on the ground.

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F. Floods Insurance Facts:

What To Do Regarding Insured Homeowners Loss

A Question and Answer Guide for Consumer




Phone (573) 751-4126

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Dear Fellow Missourian: The purpose of this brochure is two-fold. First, it consists of a summary of flood losses that are generally covered by insurance and may be used as a general guide in answering questions relating to such insurance coverage. As policies issued by different companies vary, you should contact your insurance agent, company or my office if you have specific questions. Secondly, it is designed to provide information regarding precautions or actions that should assist Missouri residents in preparing for, or coping with, a flood. Detailed problems or inquiries will need to be handled by correspondence. However, I call your attention to our Consumer Hotline, which will enable you to call my Consumer Services Division from anywhere in the state–toll free 1-(800) 726-7390-if you have any questions about your insurance coverage, I urge you to take advantage of the services of your Insurance Department.

Insurance Information

Insurance Coverages Much of the flood damage in Missouri is not covered by insurance unless covered by the National Flood Insurance Program. Generally, property insurance policies, homeowners’ policies, farmowners’ policies, dwelling fire policies, etc.) do not cover loss or damage caused by flood. Listed below are types of policies that may provide recovery for loss or damage caused by Flood: 1. Comprehensive Automobile Insurance: Flood damage to your automobile is covered

if you carry comprehensive coverage. If you carry collision without comprehensive coverage, you are not covered for flood damage. Car rental reimbursement coverage is available from most companies as an optional coverage on your auto policy. This coverage will reimburse you for the rental of a car while your car is disabled due to a loss such as flood.

2. Personal Property Floater: Your scheduled items of house hold contents and

personal property may be covered, whether on or off the premises, by a personal property floater written separately or an attachment to a homeowners’ or farmowners’ policy. These floater policies are generally written on an “all risk” basis that includes loss or damage by flood.

3. Business policies: Some forms of business insurance provide coverage for loss or

damage caused by flood. Such flood coverage is generally optional and additional premium must be paid. This coverage may be available under Motor Truck Cargo Insurance Policies, “all risk” transportation forms, Bailees Customers Policies, “Difference in Conditions” Policies and “all risk” Builders Risk Policies.

4. Mobile Home Insurance: Insurance on mobile homes may be written with or without

flood coverage. If you own a mobile home, check your policy carefully and contact your agent or the company to determine if such flood coverage is available.

5. Watercraft Policies: Some watercraft policies (outboard, inboard, sailboats, etc.) may

provide coverage for flood losses. You should check with your agent to verify if you have flood coverage.

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6. Crop Insurance: Unless you are covered by an “all risk” Crop Insurance Policy

offered by the Federal Crop Insurance Corp., or unless your Crop Insurance Policy specifies “flood” as a named peril, you will not be covered for losses to crops occurring as a result of a flood. The vast majority of Crop Insurance Policies written in [state] cover only damage resulting from hail, wind and fire.

7. Flood Insurance: The federal government makes flood insurance available through

the National Flood Insurance Program to all property owners in a participating community. Contact your agent to determine your community’s eligibility.

Note: Loss or damage occurring as a result of a flood, such as explosion, fire, theft, looting, etc., may be covered under your existing property insurance policy. You should contact your agent should such loss occur as a result of a flood.

Program National Flood Insurance 1. Q. What is the National Flood Insurance Program?

A. It is a program that enables property owners to purchase flood insurance at rates made affordable through a Federal subsidy. In return, communities must adopt and administer local flood plain management measures aimed at protecting lives and new construction from future flooding.

2. Q. Is the program designed for individuals or communities?

A. Both. While individuals in a participating community may obtain low cost insurance protection against flood losses, the community assures increased, continuous flood protection for its residents and businesses by administering the required regulatory measures in its flood hazard areas.

3. Q. When is flood insurance required by law?

A. It must be purchased as a condition for obtaining Federal or federally related financial assistance for construction or acquisition purposes related to buildings in the identified special flood hazard areas of communities where flood insurance is available.

4. Q. Who should I contact if financial assistance is denied because the

community is not eligible for flood insurance?

A. The city or county governing body should be informed so they can consider action to establish eligibility for participation in the National Flood Insurance Program.

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5. Q. Who may purchase a flood insurance policy?

A. Any property owner whose building is located in a community that has been approved for the sale of flood insurance under the program. The owners or tenants of such structures may purchase contents as well as structural coverage.

6. Q. How does one obtain a flood insurance policy?

A. After a community qualifies for the sale of flood insurance, policies may be purchased from any property or casualty agent licensed to do business within the State in which the property is located. Be persistent, if one agent cannot help you, contact another.

7. Q. Is there a minimum premium for flood insurance policies?

A. Yes. $50 per year.

8. Q. Do flood insurance policies contain a deductible clause and if so, how much is it and how is it applied?

A. Flood policies have a deductible of $500 and higher deductibles are available.

The deductible is applied separately to each structure and contents coverage.

9. Q. Does insurance under the program provide coverage at full replacement cost?

A. Yes, but only for single family dwellings and only for those which are insured

for 80 percent of the structure’s replacement at the time of loss or to the maximum amount of insurance available under the program, whichever is less. In all other cases, adjustments of losses will be based on the actual cash value of the insurable item at the time of loss. Note: The residence must be the insured’s principle residence in order to qualify for replacement cost coverage on building.

10. Q. What types of property are eligible for flood insurance coverage?

A. Buildings and their contents only. Virtually every type of walled and roofed building is eligible (other than a gas or liquid storage tank), that is principally above ground and affixed to a permanent site, as well as a mobile home on a foundation. The contents of a fully enclosed building are also eligible.

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Keep Records of Flood Related Expenses Whether or not you have insurance coverage, complete records of losses and flood-related expenses must be kept for use in making application for State or Federal aid that may become available. Complete records should be kept for the following:

1. All actual losses, including furniture, clothes, paintings, artifacts, food and equipment, regardless of your intent to replace the objects;

2. All flood-related expenses, including the additional cost of living, if any, for

you and your family, such as motel and restaurant bills, temporary rental of cars or home rental;

3. Cleanup expenses, including materials, rented equipment and depreciation of

equipment purchased; 4. Restoration expenses, including all costs to return your home to its prior

condition, including all labor and material purchased. Completed records of objects lost should be kept. Photos of ruined homes or objects are excellent evidence for later documentation. After completion of your list of losses, have two or three of your neighbors sign the list as witnesses to its accuracy. Make sure they inspect all damaged material, so that they can state they are certain of the accuracy of the list. Make every attempt to document the value of each individual object lost, including bills of sale, canceled checks, charge account records and prior insurance evaluations. If you have no such records, estimate the approximate value, purchase place and date of purchase. Include this information with your list.

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Loss To Autos (Insured) A comprehensive automobile insurance policy covers flood damage to the insured vehicle in excess of the deductible. Flood damage does not always mean your car is a total loss since the car can often be returned to running condition with little major maintenance. For example, a car submerged only below the instrument panel for a brief period is likely to be repairable. NOTE: If your car is not obstructing traffic, do not arrange to have your car towed before contacting your insurance agent or company for detailed instructions on what to do with your flood damaged car. Determine whether your car should be towed to a garage for repair and restoration and find out who should arrange for the towing. Your comprehensive insurance will pay the expense of restoring your car to its former condition and of protecting it from further damage. You cannot abandon the vehicle to the insurance company. Only in certain cases of extreme flood damage will the insurance pay the full replacement value, less depreciation, of a car of like kind and quality. Generally, this is the retail value, which is what you would have to pay for a used car of the same year, model and condition. The value of any loss may be determined by starting with a point midway between the high and low retail-selling price of your car. The adjuster may use the National Automobile Dealers’ Association book or the “Red Book” value, then, adjustments to this value are made based on the condition of the car and extra features such as air conditioning and oversize engines. The mileage, tire tread, car interior and the general condition of the car will influence the value. If you believe your car is insured, attempt to contact your agent or company immediately and request specific instructions on what should be done. If you cannot reach your agent or company, take the following steps to minimize damage: 1. Do not start or operate the automobile; 2. Disconnect the battery; 3. Move the car from the flooded area by towing with the drive wheels off the ground so

as to avoid operating the drive axle, motor, transmission, or any mechanical part of the car;

4. Dry out the interior of the car by opening all windows and doors. The interior should

be dried out as rapidly as possible to avoid molding of the fabric. Remove all seats to avoid fading. Permit the air to get to the upholstery;

5. Protect the paint by washing off the heavy sediment. If the sediment is not removed,

it will stain or discolor the paint as the automobile dries in the sun or heat.

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General Safety Information Safety Precautions Before A Flood Do not hesitate to leave your home if there is an immediate danger of flood. If danger is not imminent, plan ahead and try to accomplish the following: 1. In many flooded homes, the water level rises no higher than two or three feet as a

result of the flood. It is important to get things above that level. 2. Do not try to pump the basement dry during the flood stage. Water pressure in the

surrounding soil can collapse foundation walls. Basements should be allowed to flood to maintain pressure on foundation walls.

3. In the event your electricity is turned off, it is wise to pull the fuses and close the

main gas valve before evacuating. 4. Where flooding is a problem, install check valves in sewer traps to prevent

floodwater from backing up in sewer drains. often, water may pour into a basement through sewer drains even though floodwaters never reach the foundation of a home.

5. When flood danger is forecast, stock your car with a supply of nonperishable food, a

first aid kit, flashlight, blankets and dry clothing, particularly extra shoes and socks.

Remember special medications or dietary foods your family might need. Keep your

gas tank full and plan your safest route to higher ground. Avoid low-lying areas prone to flooding.

6. Use household bleach to sanitize your bathtub and sink. Then rinse well and fill with clean water. Utilities may fail during a flood and a supply of water can be valuable even if the floodwaters do not reach your home.

7. Take action before flooding is imminent. Use a battery-powered radio to check on

the changing situation in your area.

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Safety Precautions On Entering Home 1. Before entering a building that has been flooded, inspect for structural damage.

After the floodwaters have receded, if you have any doubts about the structural safety of the walls or floors of a flood damaged building, call your city or county offices to determine how an inspection of the structure can be obtained so you will know if it is safe or not.

2. If there’s water on the floor, or even if it is damp, do not connect electric appliances.

Make sure plugs and sockets are perfectly dry before using them. If your basement is flooded and the electric power is on don’t go down to turn it off until the basement is pumped. Make sure the basement is not pumped out too quickly. If it is, the pressure of the ground around the basement could push the walls in. Before draining flooded basements in areas with loose, heavily saturated ground, get expert advice as premature drainage may cause collapse of foundation walls.

3. Drinking water supplies from any source suspected of being affected by flood

conditions may be treated by the following method as an emergency measure:

A. Bring water to a boil for ten minutes in a clean container. The flat taste of the water can be corrected by shaking the water in a bottle or by adding a small pinch of salt, or by pouring from one container to another. (Where water is obtained from a public supply, you will be advised by responsible authorities if boiling of water is considered necessary).

B. In an emergency, limited amounts of water may be obtained by draining a hot

water tank or by melting ice cubes. 4. Do not smoke or use any open flame until you are sure it is safe to do so. If you

have gas service, be alert for fumes. Notify your local utility if you detect any fumes. Let the building air out for a short time before entering to remove any escaped gas or foul odors.

5. Be alert for holes in the floor, loose boards, hanging or loose plaster, snakes or other

hazards.

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Salvage and Loss of Flood Damaged Property When the water recedes a layer of mud will be left that is best removed by shoveling or scraping. The walls and floors should be hosed down to remove the remaining mud. Do not allow the mud to dry–wash it off while still wet. To control odors and effectively clean flooded surfaces such as walls and floors, wash them down with commercial chlorine laundry bleach solution (two ounces of bleach to two gallons of water). If necessary, to first remove all silt, mud and debris so the action of the chlorine bleach solution is effective.

Professional restoration, cleaning and salvage companies can provide additional assistance. Many will offer free advice to stricken homeowners. In addition, even if your insurance does not include flood coverage, the company can provide helpful restoration and salvage advice through its claim adjusters and other experts. The following information deals more specifically with particular restoration problems. The data is the best available, but the Department of Insurance cannot guarantee it to be correct for a particular situation. At all times use your best judgment and consult available experts whenever possible.

1. Appliances: Washing machines, dryers, refrigerators, air conditioners and ranges should be washed clean and dried completely as soon as possible, as in most cases, they will not be damaged unless they were operating at the time they became immersed in floodwaters.

2. Books: Place on edge, being certain that all pages are separated. 3. Clothing: Clothes that have been covered with water should be immediately put on a

line and hosed. After mud has been removed, normal laundering and dry cleaning should adequately take care of the clothing. If these materials have been subject to sewage contamination, they may be further disinfected by final rinse in a chlorine bleach solution. Care should be used in treating colored materials with chlorine bleach solutions, as these fabrics may fade.

4. Concrete: Wash off and give a bleach bath. 5. Draperies: If they are completely soaked, hose down immediately. Draperies should

be taken to professional cleaners. Request that the cleaner guarantee, or at least estimate the final condition of the curtains.

6. Electric Motors: Electric motors such as heater, washing machine, dryer,

refrigerator, fans, air conditioner and compressors should be unplugged before any cleanup is attempted. Sealed motor units require little service after submersion, except they should be quickly cleaned, dried and oiled at lubrication points. Unsealed motors should be rinsed with clear water under low pressure, while being turned over slowly by hand. A large fan or reasonable heat source should be used to dry the motors as quickly as possible. Wipe dry electrical connections or metals that are beginning to corrode. After the entire unit has thoroughly dried, lubricate lightly and plug in. Once the motor is naming, leave it on for a period of time so that its own heat will provide thorough drying. An electric motor may be baked at temperatures of 100-150 degrees in a regular oven. A hair dryer can be used to dry electric outlets and other electrical devices.

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7. Fixtures: Fixtures may often hold water. Inspect and empty out water. Allow drying

thoroughly before using. 8. Food: Open food and vegetables exposed to floodwaters should be destroyed.

Undamaged canned or preserved foods may be used if the outside of the containers has been washed with a laundry bleach solution. Food requiring refrigeration should not be used if the refrigeration equipment has not been operating for more than six hours. Frozen foods thawed because of power failure must not be refrozen and should not be used if thawed for more than four hours. Food utensils and equipment subject to floodwaters should be thoroughly washed and sterilized before using. Sterilize items by boiling or by immersion in a chlorine bleach solution. Food in bottles, boxes or plastic containers should be discarded.

9. Furniture: Upholstered furniture, automobile upholstering and other household

articles should be thoroughly washed with soap and water and exposed to sun and air until thoroughly dry. Wood furniture that is glued together will usually come apart, as glue is water-soluble. Similarly, you can expect wood veneers to separate and warp as the glue dissolves. Furniture that is screwed or nailed together may be salvaged, if warping does not occur. Wash thoroughly with upholstery shampoo and wipe down. Allow drying with full ventilation.

10. Grass, Trees, Shrubbery: They often return to normal after submersion for several

days. If trees or shrubs have been damaged, they should be supported by wood stakes, etc.

11. Hardwood Floors: Scrape off mud and hose clean. Usually wood floors will buckle

and warp and must be replaced. If buckling is not severe, sanding may be sufficient. Do not dry floors rapidly-allow to air dry. Do not sand raised edges, as good wood flooring will dry out to its original condition in four to five months.

12. Magazines: Usually a total loss. If a magazine is particularly valuable, an attempt

may be made to take it apart page-by-page, spreading pages out to dry in a ventilated area.

13. Paintings: If painting is particularly valuable, take it to a professional restorer.

Paintings may be wiped with a mild soap solution and soft cloth. Charcoals, prints or pastels may be dried flat on a Turkish towel or other absorbent material. Oils may be gently hosed.

14. Plaster Walls and Ceilings: Allow to dry. Heat the rooms if possible. Wash down with

chlorine bleach solution. Plaster ceilings may contain water deposits behind the plaster that will cause sagging and eventual dropping. If you suspect there are deposits of water in the ceiling, remove the light fixtures being certain the electricity is not on. Water should then drain through fixture hole. If there is no fixture or drainage is otherwise complete, drill several small holes in the ceiling to allow further drainage.

15. Records: Immediately take records out of album covers. Wipe dry with a very soft

cloth. If dirty, use very mild soap or special record cleaner. Store records upright to prevent warping. Do not expose to temperature changes that will cause warpage.

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16. Refuse: All deposited refuse from floodwater should be covered with at least two feet of earth by the sanitary landfill method of disposal to eliminate insect and rodent control problems.

17. Rugs: Throw or area rugs should be immediately hosed down and place outside to

dry. Wall-to-wall rugs should be scraped clean of mud and rinsed off. If a wall-to-wall rug has been laid on concrete, you may attempt to dry it with a commercial power vacuum used to absorb water from rugs. If the rug has been laid on a wood or other type floor subject to water damage, the rug may be pulled up. If the backing for the rug is waffle-type material, that backing may be washed and dried and will probably be serviceable. If the backing is the fiber type, it is most likely ruined. Rugs pulled up will shrink and not fit the floors where they were previously placed. Little can be done to prevent such shrinkage particularly valuable, call a professional rug cleaner for their advice and cost of servicing. In some case, it may be desirable to leave the rug on its base. Professional advice should be sought.

18. Television, High Fidelity Equipment, Etc.: If the equipment was completely covered

by water, hose down to clean and thoroughly wipe off electrical connections that are easily accessible, being careful not to cause breakage. Dry as quickly as possible. Do not attempt to operate the equipment until is completely dry. If it still does not work after being thoroughly dried, consult a repairman.

19. Tiles: If tiles are waterproof and have been laid with waterproof glue, they should not

be injured by submersion. If water-soluble glue was used, the tile will come up soon after the floodwaters subside. If tile is laid on masonite or wood floors, the floor under the tiles may buckle, causing the tiles to come loose. Ceramic tiles should be unaffected but wall behind tiles may buckle or warp, causing tiles to come loose.

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Loss To Autos (Uninsured) If you find your car is not insured, the following guide may help to restore the car at minimum cost. The Department of Insurance has relied on the best available data and cannot guarantee it to be correct for a specific situation. The inspection of the automobile will reveal the height the water reached on the car. The submerged areas should be serviced as soon as possible. Listed below are recommended service procedures. 1. Body Cleaning: Exterior cleaning should be done as quickly as possible to remove

heavy sediment accumulations on the paint surface. Sediment remaining for a prolonged period will stain the paint. Drying mats or seats on the top, hood, or rear deck should not be allowed. Staining or bleaching of the paint will result.

2. Interior: The mats, carpets, seat covers, seats and cushions should be removed from

the car and given a thorough washing with a low-pressure hose. All body trims such as door trim panels, head lining, rear quarter trim panels and parcel shelf panels should be left in place. Cowl panels consisting of single thickness cardboard may be removed and replaced at once if not badly warped.

A low pressure, high volume water hose should be used to wash the interior of the car. The rain drain opening in the bottom of the doors and quarter panels should be kept open and water flooded past the door glass. This will thoroughly clean the inner door and quarter panels.

Use a high suds detergent and a soft bristled brush and again wash all upholstery seat cushions on both inner and outer surfaces where they can be reached. Allow drying thoroughly before replacing.

If panels are warped, remove the panels, reverse trim to the other side of the panel and install the panels on the opposite side from where they were originally installed. Plastic upholstery should be washed and if additional cleaning is required, use one of many plastic cleaners.

3. Motor Submerged: If the motor was submerged, remove all spark plugs, drain the

motor oil, transmission fluid and rear differential grease; then turn the motor over by hand to force the water from the cylinders.

Place each piston on top dead center and blow compressed air into the cylinder through the spark plug hole to dry and clean the cylinder. Place about 1/8 of a pint of oil in each cylinder and again turn the motor over slowly by hand.

4. Water In Crank Case: Draining and flushing of the oil is usually ample protection. If there is considerable sediment in the oil pan, the pan should be removed and the pan and screen should be cleaned.

5. Motor Top: With each piston on top dead center, blow compressed air into spark

plug hole to blow out any sediment or dirt. Flush valve and pushrod assemblies. Blow out intake manifold.

6. Carburetor: The carburetor need only be cleaned.

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7. Transmissions, Standard: Is necessary is to drain, flush and refill. 8. Transmissions, Automatic: Drain, remove pan and clean screen if test shows

presence of water. Remove torque converter, lower cover and clean if sediment is present.

9. Overdrive: Drain and flush. 10. Clutch, Standard Drive: In heavy sedimentation, the clutch lower pan should be

removed and cleaned. Water can be used to wash up into the clutch assembly. 11. Brakes, Master Cylinder: Master cylinder should be removed, the reservoir emptied,

cleaned and replaced. No other cleaning action is necessary on the hydraulic system, since all lines are full of fluid.

12. Power Brakes: The vacuum cylinder of a power brake has a filter over the breather

hole into the cylinder. This filter should be removed and cleaned and replaced and the water drained from the power brake cylinder. The master reservoir should also be drained and flushed.

13. Brake Drums: The brake drums should be wired or blown clean and the front

wheels repacked. If very heavy accumulation of sediment, remove and clean rear brake drums.

14. Power Steering: The steering fluid reservoir has a small breather hole in the filler

cap. The reservoir should be drained and cleaned. 15. Steering Gear, Housing: Remove the filler plugs, force water out by forcing grease in.

Removal is not necessary. 16. Rear Axle: Remove the gas plug. If water is present, drain and flush the unit with

kerosene. No further work is necessary since the vital parts within the unit would be protected by the lubricant that floats to the top. The water will be only in the bottom.

17. Radiator: In heavy sedimentation the air passages of the radiator core may become

plugged with sediment. The air passages should be blown or washed out. The fluid in the cooling system is sealed and is not affected by floodwater or sediment.

18. Exhaust System: Remove any sediment that has accumulated and blocked the clear

portion of the tail pipe. Little or no sediment will get into the forward part of the tail pipe because the air pressure within the system will keep most of the water out. The operation of the motor will blow out any remaining sediment.

19. Air Conditioning: The air conditioning unit is a sealed unit; but can accumulate

sediment in the condenser unit air passages. The condenser is located in front of the radiator and has the appearance of a radiator. The evaporator unit on the dash is a radiator-type unit. Removal of the blower unit permits inspection for clogging of the air passages. Wash air passages and clear if blocked by sediment. The blower motor may be washed and blown dry. The magnetic clutch should be tested after the car is started. If it does not release, remove, clean, and replace.

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20. Generator: All that is necessary is to remove the generator, flush it with water, dry

with air pressure; if possible, lubricate, and replace. 21. Spark Plugs: Spark plugs that have been submerged need only to be dried. 22. Ignition Coil: This unit is completely sealed and waterproofed. Wash and dry the

unit. 23. Distributor: Should be removed, disassembled, washed, dried, lubricated, and

replaced. If it is removed, the motor will need to be timed. The condenser in the distributor may accumulate sediment and should be replaced.

24. Voltage Controls: Re-move cover and blow dry with air pressure. Also clean the

contact points. Damage results only when electric circuits are used or car is started before cleaning and drying.

25. Wiring: The wiring will not be damaged by floodwaters. Allow the wiring to dry. 26. Battery: Because of the small holes in the cap of a battery and the small amount of

water necessary to completely fill the battery with water, there will seldom be any damage to the battery.

27. Starter: The starter should be removed, disassembled, washed with water, dried

with compressed air, and replaced. 28. Solenoids: These are sealed units and require no service except exterior cleaning,

unless trouble develops in starting the car. 29. Switches: Replace only if they do not operate. 30. Tail, Back-Up Directional, Stop and Dome Lights: Remove lenses, clean reflectors

and replace. 31. Radio: Remove, dry, and clean with air if possible. You may wish to send it to a radio

shop for professional repair. 32. Heater Motor: Remove, wash, dry and replace if they do not operate. Examine heater

core air passages for sediment. Blow out with air or wash out. 33. Electric Wipers: Motor may need washing with water and dried. 34. Vacuum Wipers: This unit is vacuum tight. Slight sedimentation could occur in the

valve or gearing, but not internally in the vacuum unit. 35. Horns: It is seldom that any sediment will accumulate within the unit because of the

back pressure. If in doubt, the cover should be removed and air applied to the motor.

36. Instruments: Remove, dry, clean and replace.

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37. Gasoline Tanks: A small atmospheric equaling hole is in the cap or on the top of all gasoline tanks. If the removal of the bottom plug reveals water, drain and flush the tank.

38. Speedometer: Remove, disassemble and blow clean with air. Lubricate and replace.

Lubricate speedometer cable. 39. Deodorizing: Deodorizing should generally not be necessary. Any deodorizing work

should be delayed until such time as the upholstery is entirely dry. There are companies that specialize in deodorizing work, but in most instances such work can be properly performed through the use of deodorizing bombs. In severe cases the doors and windows should be closed and sulfur candles allowed to burn within the car for twelve or more hours.

40. Lubrication: All units from which the lubricant has been drained should be

lubricated and the chassis should be lubricated after washing the under part of the car.

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Question and Answer:

(hearing/speaking impaired 1-(800) 462-7585)

How soon will FEMA arrive?

Once you have applied and 4 or 5 days have passed without a representative of FEMA contacting you, then call 1-(800) 525-0321 (hearing/speaking impaired 1-(800) 600-8005).

Should I remove flooded carpet or make repairs before an adjuster comes?

Contact Information:

Federal Emergency Management Agency (FEMA) 1-(800) 462-9029 (hearing/speaking impaired 1-(800) 462-7585)

How do I contact FEMA? 1-(800) 462-9029

It depends on the order in which FEMA receives the application.

Because of the pollutants in the water, it is advisable to remove carpet as soon as possible. However, take pictures for documentation for the insurance company before removing anything nor making the repairs. It is recommended that you wear protective gear and wash hands frequently to remove pollutants. If you have a flooded basement, Do Not pump out the inside faster than the ground water drops or you run the risk of collapse of the basement wall.

National Flood Insurance questions 1-(800) 462-4661

Missouri Department of Insurance 1-(800) SCOTT-LAKIN Federal Emergency Management Agency (FEMA) www.fema.gov/nfip National Electrical Manufacturers Association www.nema.org

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http://www.fema.gov/nfip

www.nema.org

G. When Earthquakes Strike:





What To Do After An Insured Homeowners Loss

Truman Building

Phone (573) 751-4126

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Earthquakes Be prepared for aftershocks Aftershocks often occur after an earthquake. Unlike natural disasters, such as floods and windstorms, earthquakes are not predictable. No advance warning can be given. However, it is possible for households to make some advance preparations to minimize the impact of an earthquake. This information outlines some actions recommended by most authorities and describes generally how earthquake insurance works. Before An Earthquake Hits... Have a family emergency plan and be sure that at least one family member has first-aid training. If you live in a private house, verify that it is properly tied to the foundation. Extensive damage is often done to home that shift and slide on the foundation during an earthquake. A contractor can advise you about this and suggest whether lateral bracing of the house walls is necessary.

Be sure that water heaters and other gas appliances are properly bolted down or supported on the floor or wall. Maintain fresh batteries in a portable radio and have at least one flashlight in good working order.

When An Earthquake Hits... If you are inside a building, stay there. Stand in a doorway or get under a heavy table or desk. Stay away from windows or other glass that might shatter. In a large store or other public place, most people will race to get out, which means that the door ways will probably be blocked. Don’t be part of the jam, follow the pre ceding instructions.

Keep clear of power lines.

If you are in a car, stop as soon as you safely can and stay inside it. If possible, try to get to the floor, under the dashboard.

If you are outside, try to get into an open space, away from buildings that might have falling glass, cornices, or chimneys.

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After the Earthquake Shocks ... When the earthquake shocks (tremors) are over, some active perils may still occur. For example, broken gas lines or appliances may cause fires and ruptured water lines can cause extensive damage. Authorities recommend: First check those with you for injuries. Start first aid immediately if necessary. Listen to your battery-operated radio for emergency instructions. Check utility lines and appliances for damage. If you smell gas, open the windows and turn off the main gas valve. Do not turn on electric lights or appliances until the gas has dissipated (they can cause sparks that might ignite the gas). If electric wires are shorting out, turn off the power. Check chimneys for cracks or other damage before using them. Stay off the telephone, except to report emergencies. It is not necessary to report an earthquake to the police nor advisable to ask them for details about it. Do not spread rumors or go sightseeing. Stay away from beach areas because of the danger of possible large seismic sea waves. Tips to facilitate settlements of earthquake claims

After the initial earthquake shocks have died away, residents in the areas whose homes have suffered earthquake damage must begin the task of putting their lives together and property back together. The following guidelines should assist homeowners in this process. If your property has been damaged as a result of an earthquake, do whatever is necessary to prevent further damage, including boarding up your home to prevent looting. Obtain estimates covering repairs to structural damage. Prepare an inventory of damaged personal items. Include a description of each item and its value. Attach bills, receipts, and other documentation that substantiates your figures. In addition, keep careful records of any additional living expenses you incur if you have to find other accommodations while your house is being repaired.

Once your insurance company has determined that your loss was covered, it probably will assign an adjuster to verify your claim and determine the amount of the loss. Most claims are settled promptly, but some may require investigation, often because of the extent of the loss or because its cause is unclear.

As with all types of insurance, the best advice is to understand your policy and be sure you have the proper coverage before an accident or disaster occurs.

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H. When Terrorism/War Strikes:

Insured Homeowners Loss


What To Do After An




Truman Building

Phone (573) 751-4126

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Terrorist Incident Response Plan Terrorism is defined as “the unlawful use of force or violence against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives.”

Missouri’s targets include the numerous federal and state facilities (military installations, courthouses, prisons, office buildings), religious, educational, business and manufacturing centers, as well as airports, railroads, pipelines, power plants and public utilities.

Law enforcement officials have identified a significant number of extremist groups operating in the state. Also, national and international terrorist organizations could target sites in Missouri.

The Presidential Decision Directive 39 (PDD-39), which was signed after the Oklahoma bombing, establishes policy to reduce the United States’ vulnerability to terrorism, deter and respond to terrorism, and strengthen capabilities to detect, prevent, defeat, and manage the consequences of terrorism. New terms have evolved from this: Crisis Management and Consequence Management.

Terrorism comes in many forms. Among these are bombings, arson, infrastructure attack (water, electric, gas, or telecommunications systems), mass shootings, cyberspace failure/disruption, transportation attack (hijacking, bombing, sabotage), and common law courts. These forms of terrorism can be further enhanced through the use of weapons of mass destruction (WMD), which include nuclear, biological, or chemical (NBC) materials.

Crisis Management

Crisis management includes those measures used to identify, acquire, and plan the use of resources needed to anticipate, prevent, and/or resolve a threat or act of terrorism. State and local governments will assist the federal government in this goal. This is primarily a law enforcement effort headed by the FBI.

Consequence Management Consequence management includes those measures that protect public health and safety, restore essential government services, and provide emergency relief to governments, businesses, and individuals affected by the consequences of terrorism. Consequence management is generally a multifunction response coordinated by emergency management, with assistance from other functional coordinators within the state agencies. Once a terrorism incident is suspected, law enforcement officials will request assistance from the FBI, who will then ask state and local law enforcement agencies to provide representatives. See Appendix G – State of Missouri Terrorist Incident Response Plan for more details

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of

and Disaster

Press Release Examples

Floods/Tornadoes

Tips and Hints

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Sample

Missouri Department of Insurance PRESS RELEASE Contacts: Public Information Officer

For Immediate Release Example!!!

Start of Flood/Tornado Season: Update to match current season’s predictions

Insurance Director Lakin Says Take Precautions Now

JEFFERSON CITY — Tornado Season begins in the fall, and despite calling for a normal season, forecasters caution residents about becoming too complacent about potential storms. Missouri Insurance Director Scott Lakin reminds citizens that it’s never too early to prepare for the worst.

The lesson we should learn from past disasters is that taking precautions well before the threat of a major storm is a necessity. Missourians should review their policies and speak with their insurance agents about their coverage.

Director Lakin and the Missouri Department of Insurance suggest that Missourians remember the following storm preparation tips so they may minimize their property losses:

• Homeowners should review their insurance policies with their agents. Most standard homeowners policies do not cover flood damage, and some policies in coastal areas may not cover windstorm damage. Don’t wait until the storm is approaching to upgrade your coverage.

• Flood insurance can be obtained by qualifying property owners by contacting your local

agent or through the National Flood Insurance program. Call (800) 638-6620 for more information.

• Residents living in rental property should consider purchasing renter’s insurance to cover losses of personal property within the rental unit.

• Property owners should consider what amount of coverage they need based on two possible values—replacement value or actual cash value. Replacement value is the amount needed to rebuild the home or to repair damages with materials of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in home or property value due to age or wear since the time it was built or purchased. Actual cash value is the amount it would take to repair damage to the home after depreciation. Most standard homeowners’ policies cover the contents of a home based on actual cash value, but many insurers offer an option to cover your property at replacement cost. The premium may be slightly higher with this option, but you may want to consider the extra coverage.

• Make a list of your belongings and take pictures or videotape them. Include a close-up

shot of the day’s newspaper to provide the date. Keep your inventory list along with purchase receipts, pictures and your insurance policy in a safe-deposit box or other safe place away from your home. If you are forced to evacuate, take a copy of your policy with you.

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In the event of a storm, take action to protect your property — cover your windows with storm shutters, siding or plywood. Move vehicles into garages when possible, or park them near your home and away from trees. Grills, patio furniture and potted plants should be moved into the house or garage. Loose objects in your yard can become missiles, so tie down anything you cannot bring indoors. Additional tips for hurricane and storm preparation are also available online at the Department of Insurance’s Web site, http://insurance.state.mo.us. If you have any questions or problems concerning your insurance coverage, contact the Consumer Services Division of the Department of Insurance toll-free at (800) 726-7390.

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Sample

Contacts: Public Information Officer For Immediate Release Example!!!

Missouri Department of Insurance PRESS RELEASE Lakin Urges Citizens to Prepare Property JEFFERSON CITY — It is important to document your property and possessions in order to protect yourself. Keep the inventory, which includes receipts, pictures, videotapes, etc. in a safe deposit box or another safe place away from home. Before a storm hits:

• If you are forced to evacuate, take copies of your insurance policy and your inventory list with you.

• Move vehicles into garages, if possible; otherwise park them near your home and away from trees.

• Clear your yard of loose objects that can become missiles. Tie down anything you can’t bring in.

After a storm hits:

• Begin preparing an inventory of personal property damaged or destroyed and take pictures of the damaged property.

• Do not have permanent repairs made until your insurance company has inspected the property and you have reached an agreement on the cost of repairs.

• Make a list of your belongings and record them on film through still photos or videotape. Include a close-up shot of the day’s newspaper. Keep this list in a safe place away from your home.

• Take action to protect your property; cover your windows with storm shutters, siding or plywood.

• Move grills, patio furniture and potted plants into the house or garage.

• Contact your insurance agent as quickly as possible and ask for instructions on what to do until your adjuster arrives.

• Protect your property from further damage. Your reasonable expenses to protect your property are part of the loss and are generally reimbursed by insurance companies. Keep all receipts.

• If necessary, rent temporary shelter. If your home is uninhabitable, most homeowners’ policies pay additional living expenses while your property is being repaired. Before renting temporary shelter, check with your insurance company or agent to determine what expenses will be reimbursed.

If you have any questions or problems concerning your insurance coverage, contact the Consumer Services Division of the Missouri Department of Insurance at (800) 726-7390. You can also request free copies of the Consumers Guide to Homeowners Insurance.

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Examples of

Flood Press Releases

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Missouri Department of Insurance PRESS RELEASE Contacts: Public Information Officer

For Immediate Release Example!!! Suggested Flood Release

Safety Tips for Flood Victims Returning to Their Homes

• Do Not Drive Through A Flooded Area —More people drown in their cars than anywhere else. Don’t drive around road barriers; they are there for a reason. The road or bridge may be washed out.

• Look Before You Step—After a flood, the ground and floors are covered with debris, including broken glass and nails. Floors and stairs that have been covered with mud can be very slippery.

• Carbon Monoxide Exhaust Kills—Use generators or other gasoline-powered machines outdoors only. The same goes for camping stoves. Fumes from charcoal are especially deadly; cook with charcoal outdoors also.

Flood victims who have flood insurance are encouraged to contact the insurance agent or company you purchased the policy through as quickly as possible to file a claim.

Specific questions about flood insurance should be directed to the National Flood Insurance Program’s hotline at 1-(800) 427-4661.

JEFFERSON CITY — The Federal Emergency Management Agency offer the following tips: • Do Not Walk Through Flowing Water—Drowning is the number one cause of flood deaths. Most of

these drownings occur during flash floods. Six inches of swiftly moving water can knock you off your feet. Use a pole or stick to make sure that the ground is still there while walking through a flooded area, even where the water is not flowing.

• Stay Away From Power Lines And Electrical Wires—Electrocution is also a major killer in floods. Electrical current can travel through water. Report downed power lines to your utility company or local emergency manager.

• Check For Structual Damage Before Entering Your Home—Don’t go in if there is any chance of the building collapsing.

• Turn Off Your Electricity When You Return Home—If you did not turn your electricity off when you left home before or during the flood, do so immediately upon returning home. Some appliances, such as television sets, can shock you even after they have been unplugged. Don’t use appliances or motors that have gotten wet until they have been taken apart, cleaned and dried. Keep power off until an electrician has inspected your system for safety.

• Watch For Animals, Especially Snakes—Small wild animals that have been flooded out of their homes may seek shelter in yours. Use a pole or stick to poke and turn items over and scare away small creatures.

• Be Cautious Of Drinking Water From Your Local Supply—Many local water supplies will be contaminated following a flood. Drink bottled water whenever possible until local authorities proclaim water in your area safe to drink. If you must drink water from the tap, boil it for at least five (5) minutes before drinking it or using it for food preparation.

• Be Alert For Gas Leaks—Use a flashlight to inspect for damage. Do not smoke or use candles, lanterns or open flames unless you are sure that the gas has been turned off and the area has been aired out. Do not switch lights on as switches inside the home can spark.

• Clean Everything That Got Wet – Floodwaters have picked up sewage and chemicals from roads, farms, factories and storage buildings. Spoiled food and flooded cosmetics and medicines are health hazards. When in doubt, throw it out.

• Do Not Save Ruined Items For Inspectors Or Adjusters—Mud and mold left behind by floodwaters may be health hazards. Take photographs, videotape or compile a list of itemized losses, but Get Rid of the ruined items as soon as possible.

• Take Steps To Reduce Your Risk In The Future—Make sure to follow local building codes and ordinances when rebuilding and use flood-resistant materials and techniques to protect yourself and your property from future flood damage. Also, if you do not presently have flood insurance, contact your local agent to purchase coverage. There is a 30-day waiting period before coverage takes effect.

• Be Prepared For A Rough Time—Recovering from a flood is a big job. It is wearing on both the body and the spirit. The after-effects of a disaster on you and your family may last a long time. Consult a health professional on how to recognize and care for anxiety, stress and fatigue.

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Contacts: Public Information Officer For Immediate Release

Example!!!!

Missouri Department of Insurance PRESS RELEASE

Suggested Flood Release Director Lakin Calls on Insurance Companies

Citizens in Need of Assistance • Insurance Director Scott Lakin has requested that all licensed insurance companies

allow customers affected by the floods additional time to make premium payments. This deferral is for any payment coming due the end of September, interest free, for up to 60 days from the original premium due date.

• Director Lakin has also reminded health maintenance organizations and other licensed

insurers with network benefit plans to maintain expedient access to medical care and services. Missouri law requires companies to cover services provided by out-of-network providers, at in-network benefit levels, when providers are not reasonably available.

• The Consumer Services Division of the Missouri Department of Insurance has placed

information in the local DRC’s instructing consumers how to get in touch with the Department with their questions and/or complaints. Specialists can be reached by dialing toll free (800) 726-7390, or writing to:


301 W. High, 530 Truman Building Consumer Services Division

Jefferson City, MO 65101 Consumers with questions or complaints about flood insurance purchased through the National Flood Insurance Program (NFIP) should call the NFIP at 1-(800) 462-9029.

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Suggested Earthquake Release

Tips On Earthquake Preparedness For Homeowners

Director Lakin recommends that all residents:

• Have a family emergency plan and be sure at least one family member has first-aid training.

• Is your frame home bolted to the foundation? It should be. Some walls may need additional bracing. Check with your local building department, contractor or architect.

• Tall furniture (entertainment centers for example) should be bolted or attached to the wall. Mirrors, picture frames, hanging plants and lamps should be as securely attached as possible. Position beds away from glass or hanging objects.

Contacts: Public Information Officer

For Immediate Release Example!! Who should know about earthquake preparedness? All homeowners throughout the state should, according to Missouri Insurance Director Scott Lakin. With a variety of predictions of a major quake along the New Madrid Fault line, residents throughout the state are interested in protecting themselves, their families and their homes-if and when-such a quake should occur. In the event of a major quake, the Department’s Hotline will become the communications center for news media throughout the state with two special phone lines in operation. The Hotline will also become the emergency center for consumers seeking earthquake insurance information. Two emergency numbers should be kept in mind. For news media the number is (800) 726-7390. Consumers who need information concerning earthquake insurance coverage, or any insurance questions should call: (800) 726-7390. Whether the prediction of a major earthquake occurs or not, and most experts agree it is impossible to predict the exact date of such an occurrence, the Department of Insurance believes now is the time to inform the public as fully as possible.

• Bolt down water heaters and strap them securely to a wall.

• Chimneys and roofs should be well supported and in good condition. Attach plywood to joists above a ceiling near a brick chimney to stop bricks from tumbling down as they shake loose.

• Use latches (child proof ones are good) to prevent cabinet doors from swinging open. • Have flexible connectors for gas supply to gas-fueled appliances. • Have responsible family members learn how to turn off gas, water and electricity. There

is an automatic earthquake actuated gas shutoff valve on the market. • Remove trees that are leaning toward your home or are weakened by rot. Remove limbs

that are dead or diseased. • Maintain fresh batteries in a radio and flashlight. Your radio will be able to alert you to

emergency instructions.

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After a quake hits do the following: • Bring all to a safe place and look for anyone missing in places where they could be

trapped. Attend to injuries. A simple first aid kit kept in the home is a wise idea for any emergency situation

• If your home is heavily damaged collect food, water, medicines, clothing and sleeping necessities and remove people to a safe place outdoors.

• Check all utilities: gas, electricity, water. Turn off main gas valve and open windows if there is a gas leak. And, don’t turn on lights. Turn off all appliances that were in operation when the quake hit.

• If possible clean up dangerous spills such as flammable liquids or medicines. • Check to see if sewage lines are intact and working before permitting continued

flushing of toilets. • Stay off the telephone except to report emergencies or contact your insurance agent. • Make a list of damaged or destroyed property and contact your insurance agent as soon

as possible. • Avoid hasty repairs. Check the credentials of contractors with your agent or the better

business organization in your area. • Be prepared for aftershocks that are common after earthquakes. When an earthquake is in progress Towers said that if people are indoors-stay there. Individuals should seek cover under a heavy desk or table in an interior doorway. Stay away from windows and do not go to a basement as is suggested in tornado warnings. If outdoors, don’t seek shelter in a building—look for open spaces. Also, avoid being close to buildings, chimneys, overhead wires, poles and other objects that might fall. If you are in a car, pull over and turn on your radio and try if possible to get under a dashboard. Avoid bridges and overpasses. For additional tips on earthquake preparedness contact your Department of Insurance at (800) 726-7390.

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Suggested After Earthquake Release Earthquake Insurance: Designed For The Big Losses

• Deductibles–Earthquake coverage is usually written with a deductible of 2 or 5 percent on the amount of coverage purchased, unlike a typical homeowners policy, which has a fixed dollar amount as the deductible. This percentage deduction keeps the coverage within reach of the average property owner.

Earthquake insurance is catastrophic coverage. It is not intended to pay for small, relatively inexpensive losses. The purchase of earthquake insurance should be made to protect homeowners against great financial disaster as the result of a major earthquake. According to the Missouri Department of Insurance, in order to have coverage, an earthquake rider or endorsement must be added to a general homeowners policy. Earthquake insurance cannot be purchased as a separate policy. The earthquake coverage endorsement can also be added to a fire or property insurance policy. Towers advises consumers to check with their agent or company for specific details on earthquake coverage, but offered this additional information:

• Earthquake Endorsements -These add coverage for earthquake to an existing homeowners, property or fire policy. The cost may vary from company to company.

The closer your home is to an earthquake fault line the higher the cost of insurance coverage. Other criteria used include whether the house is made of brick or wood, and the amount of coverage you choose to purchase.

The deductible applies separately to the building and household belongings such as furniture, appliances, clothes, etc. As an example, if an earthquake damaged a home insured for $50,000 on the structure and $25,000 on household belongings with a 5 percent deductible, the homeowner would bear $2,500 of the damage to the building. The homeowner would also bear $1,250 of the damage to furniture, clothes and other contents. Earthquake insurance would pay the remainder up to the amount of coverage bought–$50,000 on the home, and $25,000 on the contents. • Apartment Renters—Earthquake insurance may be added to the renter’s existing fire or

apartment renters insurance package. This coverage applies to damage to household belongings only because the renter does not own the building. Cost varies from zone to zone also depending on construction of the apartment building. The deductible applies as it does to earthquake insurance in the homeowners’ package.

• Mobile Homes—Earthquake insurance is automatically included in some mobile homeowners

insurance package policies and may be added as an optional endorsement in others. The deductible may be a fixed dollar amount or a percentage.

The Department of Insurance also advises homeowners and apartment, condo and mobile home dwellers to document the contents either with written list or videotape. Place this information in a metal box, in a bank safety box or with a neighbor or relative. This record will help to speed up any claims after a disaster such as an earthquake. The Department of Insurance’s Hotline will become the earthquake insurance consumer Hotline if a catastrophic earthquake occurs. The number for the Hotline for earthquake insurance information or for general insurance information is (800) 726-7390.

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• Contact your agent, broker or insurance company representative if you have any questions regarding coverage. In addition, he or she can tell you what your deductibles are, what procedures to follow and what forms or documents you will need to support your claim.

After The Earthquake: Preventing Further Damage And Filing Claim

For Immediate Release Example!!!

Contacts: Public Information Officer If a major earthquake were to strike, residents in the areas whose homes have suffered earthquake damage will need to begin the task of putting their lives and property back together–as soon as possible. Homeowners with earthquake coverage as a rider to their homeowners policy, who have documented their home and its household belongings with either a written document or videotape will have an advantage. Keeping records, along with receipts, in a safe place such as a metal box, a safety deposit box or with a relative or friend will certainly help those homeowners when filing a claim. The Missouri Department of Insurance offers the following guidelines to assist homeowners in the claims process: • If your property has been damaged as a result of the earthquake, do whatever is necessary

to prevent further damage, including boarding up your home to prevent looting. • Review your homeowner’s insurance policy to determine if you have added the earthquake

endorsement or rider for coverage for earthquake damage.

• Obtain estimates covering repairs to structural damage. • Prepare an inventory of damaged personal items. Include a description of each item and its

value. Attach bills, receipts and other documentation that substantiate your figures. Be sure to keep careful records, including receipts of any additional living expenses you incur if you have to fine other accommodations while your house is being repaired.

Once your insurance company has determined your loss is covered, an adjuster will be assigned to verify your claim and determine the amount of the loss. Most claims are settled promptly, but some require prolonged investigation, often because of the extent of the loss or because its cause is unclear. As with all types of insurance, the best advice is to understand your policy and be sure you have the proper coverage before an accident or disaster occurs. The State Insurance Department suggests that you consult your insurance company or your agent about earthquake coverage or about any portion of your homeowners policy that you have questions about. The Department of Insurance Hotline will become the earthquake insurance consumer Hotline if a catastrophic earthquake occurs. The number for the Hotline for earthquake information or for general insurance information is (800) 726-7390.

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Appendix 7: Data Reporting

Revised as of 07/31/02 Section 24

Special And Customized State Data Requests (“Special Calls”)

24.1 Introduction States sometimes will have questions that insurance data may be able to answer, but that are not answered by the standard reports described in other sections of the Statistical Handbook. Sometimes answers can be provided by the creation of a customized report generated from data already collected by statistical agents. Sometimes, however, the only way that these questions can be answered is to ask insurers to make special data submissions to produce the report that is needed. These special data submissions, commonly referred to as “special calls” by those who deal with insurance statistics, are often expensive and difficult for insurers to provide.

Clearly, if the information that a regulator requires can be provided as a customized report using data already in the possession of statistical agents, then this will be the quickest and least expensive course of action. This section will not go into the endless variety of custom reports that can be generated by statistical agents; rather, it strongly recommends that states in need of a nonstandard report first review the applicable sections of the Handbook and/or contact their statistical agents to see if the report can be provided from information that is already in the possession of statistical agents. The Special Calls Technical Assistance Group (SCTAG) referenced in subsection 24.2 will help states determine whether statistical agents already have the data that will enable them to produce a report that meets a regulator’s needs. The purpose of this section and of the SCTAG are to assist in addressing those situations where statistical agents do not have the necessary data.

States that have a data need that appears to require a special call are urged to check the NAIC web page devoted to P&C statistical purposes and special calls (http://www.naic.org/pcstat/). The SCTAG can be contacted from this web page and the web page also provides other resources that states looking for data are likely to find helpful.

24.2 Special Calls Technical Assistance Group (SCTAG) The Special Calls Technical Assistance Group (SCTAG) is a volunteer group of insurers and statistical agents formed and overseen by the NAIC’s Statistical Information (C) Task Force and charged with providing assistance to regulators and legislators with regard to unusual or one-time state data needs. If the state and the SCTAG find that statistical agents do not possess the necessary data, and the state decides to undertake a special call, then the SCTAG will work with the statistical agents to collect the necessary data or will provide assistance to the state should it decide to collect the data directly. The SCTAG may be contacted by contacting the NAIC’s Statistical Information Manager. In addition, as most statistical agents participate on this group, it is likely that a regulator may be able to contact the group directly by contacting the statistical agent(s) most closely tied to the line(s) of insurance that may be involved. The SCTAG may initiate contact with a state regulator if it becomes aware of a state data need where its assistance may be

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valuable. While the SCTAG will also assist legislative bodies, the Statistical Information (C) Task Force has not authorized it to initiate contact with such bodies without first receiving an explicit request to provide such assistance from a regulator in that state.

• Many special calls are due during the March 1 to May 1 timeframe. This stretches

24.3 Reducing the Cost (and increasing the quality) of Special Calls The suggestions listed below are offered to assist regulators as they strive to minimize costs and increase the accuracy of the information received when a special call is made:

• Use the NAIC statistical / special calls web page (http://www.naic.org/pcstat/), both as a resource as well as a means of improving communication with insurers.

• Sunset provisions or other provisions to terminate reporting automatically after a specified period may help avoid periodic reports that extend beyond a useful date.

• Please communicate the discontinuation of a regular call via the NAIC web page as well as by your normal communication channels.

• Renewal of a data call after an extended period of inactivity should be treated as a new

call.

• The number of back years of data required in special calls should be kept to a minimum.

• Careful consideration should be given to the level at which data fields are required. Most commonly, problems occur with requests for unallocated loss adjustment expenses, incurred losses and IBNR. These items involve estimated quantities and such estimates are normally not made at a subline/class/coverage level. Customarily, such estimations are calculated on an Annual Statement Line level, but not at a more detailed level. It can be a complex, expensive (and often arbitrary) process to estimate these amounts at detailed levels. Providing these amounts at a company level (for company groups) further complicates the process. When a regulator’s data needs positively require such estimates, it must be remembered that different insurers will use different methodologies to develop them. It may be often more efficient to request this data at the level of detail reported to the statistical agents. This will have the added advantage of allowing statistical agents to handle much of the work and will allow these estimations to be made on a uniform basis by the statistical agent.

• Data elements such as risk count, policy count and exposures can become meaningless

if they are requested at the wrong level of detail. Exposure bases vary within subline and coverage so that an aggregation of these elements can result in misleading totals. Policies that cover entities in multiple states or ZIP codes cannot be unambiguously counted by state or ZIP code.

• In some cases, the information requested in special data calls is available from other sources. If data elements are available on the Annual Statement or are already reported to a statistical agent, then reporting costs will be duplicative for the special call. For this reason, it is recommended that states with questions seek the advice of the SCTAG (see the NAIC web page) so that possible duplication of requests is reduced.

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resources and increases the possibility or responses being late or erroneous. If state needs can be met with data received a few months later, some overworked insurer personnel will be grateful (and the quality may be better).

The presence of these suggested formats does not mean that the Task Force or the NAIC recommends that data of the nature that is referenced be collected by the states. Although much of this data may be “interesting,” states are encouraged to carefully consider what they will do with information before they request it. Careful consideration will result in data calls that provide the best data to make the decisions that must be made. It will sometimes result in a decision to forego a data request when it is recognized that there is little action that will result from its compilation, or that the cost of the compilation will outweigh any possible benefit.

• Increase the chance that insurers will be able to provide data in a timely and accurate fashion.

• Where possible, establish thresholds for reporting so that if a company falls under a certain cap,

then no response or a “none to report” response is all that is required. Null reports should be as simple as possible to make and file.

• It can be helpful if insurers have input into diskette reporting formats in order to

promote uniformity across states. Again, the SCTAG (which can be contacted via the web page) can serve as a resource to provide this input.

• Unless data needs to be precisely allocated to individual insurers, it is often easier for

insurers to provide data that combines all affiliated insurers in a company group. • Making hardcopy forms more uniform and traditional in size can save money by

reducing or eliminating outside printing costs for insurers. 24.4 Suggested Formats for Common Types of Special Calls Section 24A discusses special calls arising out of catastrophes. In time, the Task Force may add other sections for other types of special calls.

The purposes of sections 24A and subsequent are to:

• Provide data definitions. For instance, if a regulator asks “how many private passenger

auto insureds?”, one insurer may report the number of policies, one may report the number of vehicles and one may report the number of known drivers. Without good data definitions, it is likely that misunderstandings of this nature will occur, and the resulting data may be of little value.

• Reduce the cost of special calls through standard calls that insurers are able to anticipate. For instance, suppose that a hurricane causes significant damage in three states. These states may each have experience with data collection and may ask for relevant and well-defined data, but each state may ask for it with slightly different timing and format requirements. The cost to insurers to provide the information will be significantly less and the quality is likely to be better if the timing and formats for each of the three states are the same. In addition, once insurers have used a common format a few times, there will be no reporting delay caused by the need for new programming and debugging – insurers will simply need to identify the state and time period and run

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the reports. While insurers still need to spend time checking data anomalies (it will not be as easy as just pressing a couple of buttons), the result will still be that insurers can provide the regulator with better data more quickly.

The NAIC desires to know of state’s experiences using the formats and definitions contained in sections 24A and subsequent. Contact the NAIC’s Statistical Information Manager to provide input or to ask questions.

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Section 24A

Catastrophe Reports

24A.1 Introduction

If a major disaster occurs, a state may find itself in need of data more quickly and with different details than are provided by standard reports described elsewhere in the Handbook. The ability of insurers to respond with timely and accurate data will increase when they know – in advance of the catastrophic event – the data requirements and specifications. To this end, this subsection provides the following optional model catastrophe calls: • Loss Summary Report – Group Direct Basis (one-time or monthly) • ZIP Code Property Exposure Report – Single State Group Direct Basis (one-time)

This subsection also provides definitions of lines of insurance and of other data-related terms. When needed, the use of these model reports and accompanying definitions will improve timeliness and quality of data received by the states or by statistical agents on behalf of the states.

24A.2 Data and Information Available without a Special Call

A significant amount of catastrophe-related information is often available without a special call. Property Claims Services (PCS) is a unit of Insurance Services Office, Inc. (ISO). After a significant property catastrophe has been identified, PCS will obtain data from major insurers in the affected market (at least 75%) in an effort to make a quick and reliable estimate of the total dollars of insured loss. PCS will share information with state insurance departments. For media-related purposes, this can be an excellent tool. PCS estimates are very quick and are provided by professionals that do this on a regular basis for catastrophes in many states. Check http://www.iso.com/aisg/index.html for more information.

24A.3 Importance to Identify the Intended Use of Catastrophe Data Before asking insurers for data, it is important that the regulator consider the decisions that will be made based upon the data. Several motivations for collecting catastrophe data may exist:

• Interest from the news media – Immediately following a catastrophe, the news media and others will want to know how much damage was done. The level of interest will be high. It is suggested that statistical calls may not be the most efficient way to respond to such inquiries. Owing to the delays involved with data collection, the information provided will not arrive as soon as the news media want it. If curiosity and the ability to respond to the media are the only reasons for an interest in data, the regulator is urged to consider the significant cost of a special data call versus the limited benefit of a late response to the news media. PCS reports may be the better choice in these situations.

• Concerns for insurer solvency – Even an industrywide loss of a billion dollars, although

it is a huge sum, is unlikely to threaten the solvency of national insurers. Hurricane Andrew, which at $16 billion is one of the largest insured catastrophes to date, had 7 insolvencies directly attributed to it, but all but of two of those were Florida-only insurers, and the other two were small regional insurers with most of their business in

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Florida. In general, solvency problems arising from catastrophes are likely to affect only single-state insurers with concentrations in the areas hit by the catastrophe. As such, if a state is concerned regarding the solvency impact of a major catastrophe, it is recommended the state identify those specific (probably domestic and probably small) insurers that write most of their business in the state that experienced the brunt of the catastrophe. A state will almost certainly get better information more quickly if they select insurers likely to have been the hardest hit and arrange one-on-one meetings with them to assess losses and probable financial impact. The type of reports necessary to judge financial impact (countrywide net basis by insurer) would be especially difficult for insurers to produce and a blanket call for reports of this nature would cause needless additional expenses for the overwhelming majority of insurers for which there would be no solvency-related impact.

• Information required to monitor claim handling – A major catastrophe presents a

problem for insurers because their normal staffing is set up to handle a steady stream of fender benders, thefts, liability claims, occasional fires, etc. An insurer’s service cannot help but suffer when its claims office incurs more losses in a single day than it might otherwise receive in several years of “normal” operation. Notwithstanding reasons why insurers should be allowed somewhat greater tolerance when it comes to processing catastrophe claims, experience has shown that some insurers are more effective at adapting to the need for them to change their “normal” procedures, while some may not respond adequately and will generate a high volume of justified consumer complaints. As such, two model calls have been provided, an exposure report that can be made on a one-time basis, and a loss report that can be provided on a periodic basis until a sufficient number of claims have been paid.

As can be seen, it is necessary to carefully consider the intended usage for data before a special data call is made. There can be little question that states will require additional information when faced with extreme situations like Hurricane Andrew or the Northridge earthquake, but it does not follow that the costs of industrywide statistical calls will always be justified by their benefits simply because damages for a disaster amount to many millions of dollars.

24A.4 Reporting and Evaluation Dates The notice to insurers that they must report data should be made as soon as the regulator has decided that catastrophe data is needed. It is suggested that the first evaluation date for losses be the last business day of the month following a catastrophe, with reporting due either (1) 30 calendar days following the evaluation date, or (2) 30 calendar days after the request is provided to insurers, whichever is later. For exposures, it is suggested that valuation be done as of the end of the month immediately preceding the catastrophe, with reporting due either (1) 30 days after the request is provided to insurers, or (2) at the time the first loss report is due if a loss report is also requested, whichever is later. 24A.5 Recommended Duration of Catastrophe Calls

Depending on the needs to be fulfilled, a single loss call to selected insurers may suffice. Another possibility is that a state may choose to make a single industrywide call with follow-ups for selected insurers only. Where updated loss data is required on a periodic basis, putting an end date on the number of reports with updated data, or ending the calls

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for insurers when most losses are paid, will ensure that calls do not become ongoing requests and continue past the time that they are of value. Where periodic loss reports are necessary, monthly evaluations are suggested for a one-year period, with an option to extend the period to two years if necessary for major catastrophes (e.g., those with an industry impact exceeding $250,000,000 or $500,000,000). 24A.6 Group Reporting Versus Individual Insurer Reporting For most groups, it adds difficulty to break out experience for individual insurers. As such, it is recommended that insurers be allowed to provide all reports on either a group basis or an individual insurer basis. 24A.7 Sample Reports Sample reports are shown next, followed by a data definitions section. The sample reports are shown in a spreadsheet format, with the columns (A, B, C, etc.) and rows (1, 2, 3, etc.) shown for illustrative purposes and so that insurers can be certain that they have placed data in the correct spreadsheet cells. These reports can then be provided using various electronic media. States that desire reports on paper can request that insurers print these spreadsheets or provide printouts in the same format that is illustrated. States that have experienced a catastrophe and have determined a need for a special data call are encouraged to copy this material and include it with any special instructions to insurers.

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24A.7 Report 1 (Loss Summary Report – Group Direct Basis)

A B C D E F G H I J 1 2 LOSS SUMMARY REPORT – GROUP DIRECT BASIS

4 State XX 5 Description of catastrophe Hurricane Zeke (or St. Louis earthquake or Chicago-area tornadoes) 6 Date(s) of the catastrophe 9/14/1995 (or 9/14-15/1995 for a period of time) 7 End Date of Reporting

Period 9/30/95

8 Report Prepared on 10/6/95 Company or Group

10 NAIC Company Code(s) 12345 12346 12347 ← Insert as many cocodes as apply, one per cell. Do not use group codes.

11 Report Prepared by John E. Doe 12 Title Statistical Analyst 13 Address Line 1 123 Shifting Sands Drive 14 Address Line 2 15 City, State, ZIP Quicksand, XX 99999 16 Telephone number (800) 555-1212 17 Facsimile number (800) 555-1213 18 E-mail address [email protected] 19 20 Losses and Claim Counts

Incurred and/or Paid IN THIS STATE ONLY

Home-owners

Dwelling Fire and Allied Lines

Commercial Fire and Allied Lines

Business-owners

All Other Lines

Farm-owners

Personal Auto Physical Damage

Commer-cial Auto Physical Damage

Totals

21 22 Paid Loss Count 23 Paid Loss Amount 24 Reported Loss Count 25 Reported Loss Amount 26 Unreported Loss Count 27 Unreported Loss Amount 28 29 What is the total loss for all states combined? (Include losses already reported in cells J25 and J27.) 30 31

3

9 Quicksand Casualty Group

What is the total claim count for all states combined? (Include claim counts already reported in cells J24 and J26.)

B4 through B9;

B11 through B18 (as applicable – leave blanks for address or e-mail cells that are not applicable)

J29 and J31.

Use the format shown above as a template, being careful to place entries in the cells shown. The cells requiring entries are:

B10, C10, D10, etc., for as many NAIC cocodes are included;

the array of cells with B22 and J27 in the corners, and

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Instructions for the Application of Loss Development in Report 1 All losses reported in this exhibit are those that have been incurred on a direct basis. Do not include losses assumed through reinsurance, and do not reduce or remove losses from this report based on reinsurance which will be available for their payment. Many insurers may not have the data immediately available to provide the loss estimates developed in precisely the manner that they have been requested. In such cases, the insurer should provide reasonable estimates. The common problem is that many insurers’ reserve tracking systems are unable to distinguish development occurring on reported losses (“bulk” development) versus development arising from those losses that have not yet been reported (which constitute true IBNR losses). Such insurers’ incurred loss calculations go directly from paid losses + case basis reserves to total incurred losses.

Notwithstanding these limitations, Report 1 should be made on the following basis:

Paid loss count This is the number of claims for which payment has been made to the policyholder as of the report date. Exclude claims where the only payment has been loss adjustment expense. Paid loss amount This is the sum of the payments less salvage and subrogation that the insurer has made as of the report date. This includes payments where the insurer continues to keep the claim file open (as the insurer believes that its payment is likely to be the first of two or three payments). Loss adjustment expenses should not be included. Reported loss count

Reported loss amount

This is the number of claims that have been reported as of the date cited in the report. Exclude claims that have been closed with no payment.

This is the insurer’s estimate of the amount that will ultimately be paid less salvage and subrogation for those claims that have been reported as of the date cited in the report. It includes amounts already paid, and it includes development of reported losses, but it does not include IBNR. Loss adjustment expenses should not be included.

Unreported loss count This is the insurer’s estimate of the number of claims that have not been reported as of the report date. Unreported loss amount This is the insurer’s estimate of the amount that will ultimately be paid less salvage and subrogation on claims that have yet to be reported. Loss adjustment expenses should not be included. PLEASE NOTE – this is true IBNR – it should NOT include development on losses that have already been reported (“bulk reserves”). Bulk reserves should be included in reported losses.

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Because Report 1 requires true IBNR to be distinguished from the development of reported claims, it is likely that the loss development systems and procedures that many insurers use for other purposes will not produce numbers that comply. If an insurer’s loss tracking and loss development systems do not distinguish true IBNR from the development of reported claims, then adjustments will need to be made. The paid numbers from such a system should be OK, and the totals (reported + unreported) should be OK as well, but it will be necessary for the insurer to allocate the totals between reported and unreported somewhat differently. Rather than subtracting paid losses and simple case basis reserves from total losses to get unreported losses, it will be necessary to estimate what portion of the “unreported losses” calculated in this fashion represent development of losses that have been reported but are under-reserved. An important point – one that will keep this from being an onerous report because of this distinction – is that this reallocation does not need to involve a great deal of precision. Simply estimate – make a reasonable guess, if you will – the amount of this effect and apply this estimation on a pro-rate basis to the unpaid losses. The most important numbers are the total losses and total loss counts for this state and for companywide. While these numbers need to be allocated more finely, precision in these allocations is not as important as quality in the totals.

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24A.8 Report 2 (ZIP Code Property Exposure Report – Single State Group Direct Basis)

A B C D E F G H I J 1 2 ZIP CODE PROPERTY EXPOSURE REPORT – SINGLE STATE GROUP

DIRECT BASIS

3 4 State XX

Description of catastrophe Hurricane Zeke (or St. Louis earthquake or Chicago-area tornadoes) 6 Date(s) of the catastrophe 9/14/1995 (or 9/14-15/1995 for a period of time) 7 End Date of Reporting Period 9/30/199

5

8 Report Prepared on 10/6/1995

9 Company or Group Quicksand Casualty Group 10 NAIC Company Code(s) 12346 ← Insert as many cocodes as apply, one per cell.

Do not use group codes. 12345 12347

11 Report Prepared by John E. Doe

12 Title Statistical Analyst 13 Address Line 1 123 Shifting Sands Drive 14 Address Line 2 15 City, State, ZIP Quicksand, XX 99999 16 Telephone number (800) 555-1212 17 Facsimile number (800) 555-1213 18 E-mail address [email protected]

20 Line(s) of Insurance 21

← Enter line(s) of insurance covered below (i.e., Homeowners, Dwelling Property, Farmowners, Businessowners or Commercial Property) NOTE TO STATES: When this report is requested, it will be necessary to specific whether a separate report (spreadsheet page) should be provided for each line – specify which – or for all property lines combined.

22

Five Digit Zip Code

Total Amount of Insurance

Insuran

Policies

in Force

Total Written Premium

Building Amount of Insurance

Contents Total Amount

12345 12346 :

. : 55555

. unknown

. Statewide Total

5

19

23 24 .

.

Use the format shown above as a template, being careful to place entries in the cells shown. The cells requiring entries are: • B4 through B9;

• B11 through B18 (as applicable – leave blanks for address or e-mail cells that are not applicable)

• The array (as illustrated) starting with row 23, using as many rows as necessary. The ZIP Codes are to be the ZIP Code of the property insured, which may be different than the mailing ZIP Code. ZIP Codes where the other entries would be zero may be omitted.

•

• B10, C10, D10, etc., for as many NAIC cocodes are included;

• B20, and

If a separate report is made for homeowners and/or dwelling fire, the contents amounts are to be only those where the dwelling is not covered (i.e. for tenants and condo forms). The total amount of insurance may be omitted for homeowners.

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24A.9 Line of Business Definitions Businessowners These policies provide property and liability coverage for small businesses, combined under one policy. They provide coverage for buildings and business personal property (replacement cost coverage), loss of business income and extra expense. Commercial Auto Physical Damage These policies pay for losses resulting from damage to or theft of a covered automobile. Basic physical damage coverages include Collision and Other than Collision (Comprehensive). (Commonly, but not always, these policies also provide liability coverage. However, for purposes of this definition, the key point is whether these policies, regardless of whether they provide liability coverage, also provide physical damage coverage.) This generally includes policies issued on business use private passenger automobiles, business use trucks, public automobiles and garages. Private passenger automobiles include all vehicles owned by corporation, co-partnership or unincorporated associations under a fleet basis and the same under a non-fleet basis when used customarily for business purposes; it also includes farmers private passenger autos, pickups, panel trucks and vans, under a fleet basis. Trucks include trucks, tractors and trailer types. Public automobiles include taxicabs, limousines, buses (school, church urban, airport, inter-city, charter, sightseeing, athletic and entertainer), social services automobiles and van pools. Garages include dealer and non-dealer garages, service stations and repair operations. It does not apply to personal use of automobiles and personal use of trucks with gross vehicle weight less than 10,000 pounds. Commercial Fire & Allied Lines This represents experience from monoline and package policies containing commercial property coverage forms and cause of loss forms. These policies can provide building, business personal property, time element and additional coverages, depending on which forms are included. Dwelling Fire & Allied Lines A dwelling policy provides property coverage for one-family to four-family dwellings. Coverage is provided for the insured’s dwelling building and personal property. Farmowners

These are package policies for farming and ranching risks, similar to a homeowners policy, that has been adopted for farms and ranches and includes both property and liability coverages for personal and business losses. Coverages include farm dwellings and their contents, barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock.

Homeowners Homeowners insurance is a package policy combining property coverage for structures (except for tenant and condominium forms), personal property and personal liability. It includes mobile homes at fixed locations.

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Personal Auto Physical Damage These policies pay for losses resulting from damage to or theft of a covered automobile. Basic physical damage coverages include Collision and Other than Collision (Comprehensive). (Commonly, but not always, these policies also provide liability coverage. However, for purposes of this definition, the key point is whether these policies, regardless of whether they provide liability coverage, also provide physical damage coverage.)

This generally includes those policies issued on automobiles owned or leased by an individual or by husband and wife resident in the same household. It covers motorcycles and four wheel vehicles including station wagons, vans, or pick-up trucks with gross vehicle weight less than 10,000 pounds and not customarily used in the occupation, profession or business of the insured. It also includes private passenger rated automobiles owned by a corporation, co-partnership or unincorporated association and insured on a policy for an individual or an individual and spouse.

All Other

24A.10 Data Element Definitions

Refer to policies covering property other than those listed above.

Building Amount of Insurance Total amount of coverage on all structures for policies included in Total Policies in Force as defined below. It is not necessary to reduce these amounts for deductibles. Contents Amount of Insurance Total amount of coverage (net of deductibles) on the contents of buildings. Losses and Claim Counts

See the instructions and loss definitions accompanying Report 1.

Total Amount of Insurance Total of Building Amount of Insurance and Contents Amount of Insurance. Total Policies in Force

The total number of direct policies in force during or at the end of the month immediately prior to the catastrophe event that provide coverage for the catastrophe event. Normally, for the lines of insurance involved, this definition includes all direct policies. Exceptions include auto policies without “comprehensive” coverage and also include homeowners and dwelling policies that exclude coverage for hurricanes.

Total Written Premiums Total direct written premium for policies included in Total Policies in Force as defined above.

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Appendix 8: Model National Emergency Management Assistance Compact (EMAC) Legislation

The following is an example of the National Emergency Management Assistance Compact (EMAC) legislation. In order for states to request and provide assistance legally through EMAC, in is important that the compact’s language in Section II not be changed as written. “Arkansota” is used as a sample.

SECTION 1. This act may be cited as the Emergency Management Assistance Compact.

SECTION 2. The Legislature of the State of Arkansota hereby authorizes the Governor of the State of Arkansota to enter into a compact on behalf of the State of Arkansota with any other state legally joining therein, in the form substantially as follows:

Article I—Purposes and Authorities

The purpose of this compact is to provide for mutual assistance between the states entering into this compact in managing any emergency or disaster that is duly declared by the governor of the affected state(s), whether arising from natural disaster, technological hazard, man-made disaster, civil emergency aspects of resources shortages, community disorders, insurgency, or enemy attack.

This compact shall also provide for mutual cooperation in emergency-related exercises, testing, or other training activities using equipment and personnel simulating performance of any aspect of the giving and receiving of aid by party states or subdivisions of party states during emergencies, such actions occurring outside actual declared emergency periods. Mutual assistance in this compact may include the use of the states’ National Guard forces, either in accordance with the National Guard Mutual Assistance Compact or by mutual agreement between states.

2

An Act to Ratify the Emergency Management Assistance Compact; and for related purposes. Be it enacted by the Legislature of the State of Arkansota:

Emergency Management Assistance Compact

This compact is made and entered into by and between the participating member states which enact this compact, hereinafter called party states. For the purposes of this agreement, the term “states” is taken to mean the several states, the Commonwealth of Puerto Rico, the District of Columbia, and all U.S. territorial possessions.

Article II—General Implementation

Each party state entering into this compact recognizes many emergencies transcend political jurisdictional boundaries and that intergovernmental coordination is essential in managing these and other emergencies under this compact. Each state further recognizes that there will be emergencies which require immediate access and present procedures to apply outside resources to make a prompt and effective response to such an emergency. This is because few, if any, individual states have all the resources they may need in all

2 (For more information, please visit: http://www.nemaweb.org/emac/index.cfm)

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types of emergencies or the capability of delivering resources to areas where emergencies exist.

A. It shall be the responsibility of each party state to formulate procedural plans and programs for interstate cooperation in the performance of the responsibilities listed in this article. In formulating such plans, and in carrying them out, the party states, insofar as practical, shall:

B. The authorized representative of a party state may request assistance of another party state by contacting the authorized representative of that state. The provisions of this agreement shall only apply to requests for assistance made by and to authorized representatives. Requests may be verbal or in writing. If verbal, the request shall be confirmed in writing within 30 days of the verbal request. Requests shall provide the following information:

The prompt, full, and effective utilization of resources of the participating states, including any resources on hand or available from the Federal Government or any other source, that are essential to the safety, care, and welfare of the people in the event of any emergency or disaster declared by a party state, shall be the underlying principle on which all articles of this compact shall be understood. On behalf of the governor of each state participating in the compact, the legally designated state official who is assigned responsibility for emergency management will be responsible for formulation of the appropriate interstate mutual aid plans and procedures necessary to implement this compact.

Article III—Party State Responsibilities

Review individual state hazards analyses and, to the extent reasonably possible, determine all those potential emergencies the party states might jointly suffer, whether due to natural disaster, technological hazard, man-made disaster, emergency aspects of resource shortages, civil disorders, insurgency, or enemy attack.

Review party states’ individual emergency plans and develop a plan which will determine the mechanism for the interstate management and provision of assistance concerning any potential emergency. Develop interstate procedures to fill any identified gaps and to resolve any identified inconsistencies or overlaps in existing or developed plans.

Assist in warning communities adjacent to or crossing the state boundaries. Protect and assure uninterrupted delivery of services, medicines, water, food, energy and fuel, search and rescue, and critical lifeline equipment, services, and resources, both human and material. Inventory and set procedures for the interstate loan and delivery of human and material resources, together with procedures for reimbursement or forgiveness. Provide, to the extent authorized by law, for temporary suspension of any statutes.

A description of the emergency service function for which assistance is needed, such

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as but not limited to fire services, law enforcement, emergency medical, transportation, communications, public works and engineering, building inspection, planning and information assistance, mass care, resource support, health and medical services, and search and rescue. The amount and type of personnel, equipment, materials and supplies needed, and a reasonable estimate of the length of time they will be needed. The specific place and time for staging of the assisting party’s response and a point of contact at that location.

C. There shall be frequent consultation between state officials who have assigned emergency management responsibilities and other appropriate representatives of the party states with affected jurisdictions and the United States Government, with free exchange of information, plans, and resource records relating to emergency capabilities.

Any party state requested to render mutual aid or conduct exercises and training for mutual aid shall take such action as is necessary to provide and make available the resources covered by this compact in accordance with the terms hereof; provided that it is understood that the state rendering aid may withhold resources to the extent necessary to provide reasonable protection for such state. Each party state shall afford to the emergency forces of any party state, while operating within its state limits under the terms and conditions of this compact, the same powers (except that of arrest unless specifically authorized by the receiving state), duties, rights, and privileges as are afforded forces of the state in which they are performing emergency services. Emergency forces will continue under the command and control of their regular leaders, but the organizational units will come under the operational control of the emergency services authorities of the state receiving assistance. These conditions may be activated, as needed, only subsequent to a declaration of a state of emergency or disaster by the governor of the party state that is to receive assistance or commencement of exercises or training for mutual aid and shall continue so long as the exercises or training for mutual aid are in progress, the state of emergency or disaster remains in effect or loaned resources remain in the receiving state(s), whichever is longer. Article V—Licenses and Permits

Whenever any person holds a license, certificate, or other permit issued by any state party to the compact evidencing the meeting of qualifications for professional, mechanical, or other skills, and when such assistance is requested by the receiving party state, such person shall be deemed licensed, certified, or permitted by the state requesting assistance to render aid involving such skill to meet a declared emergency or disaster, subject to such limitations and conditions as the governor of the requesting state may prescribe by executive order or otherwise.

Article IV—Limitations

Article VI—Liability Officers or employees of a party state rendering aid in another state pursuant to this compact shall be considered agents of the requesting state for tort liability and immunity purposes; and no party state or its officers or employees rendering aid in another state pursuant to this compact shall be liable on account of any act or omission in good faith on

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the part of such forces while so engaged or on account of the maintenance or use of any equipment or supplies in connection therewith. Good faith in this article shall not include willful misconduct, gross negligence, or recklessness.

Plans for the orderly evacuation and interstate reception of portions of the civilian population as the result of any emergency or disaster of sufficient proportions to so warrant, shall be worked out and maintained between the party states and the emergency management/services directors of the various jurisdictions where any type of incident requiring evacuations might occur. Such plans shall be put into effect by request of the state from which evacuees come and shall include the manner of transporting such evacuees, the number of evacuees to be received in different areas, the manner in which food, clothing, housing, and medical care will be provided, the registration of the evacuees, the providing of facilities for the notification of relatives or friends, and the forwarding of such evacuees to other areas or the bringing in of additional materials, supplies, and all other relevant factors. Such plans shall provide that the party state receiving evacuees and the party state from which the evacuees come shall mutually agree as to reimbursement of out-of-pocket expenses incurred in receiving and caring for such evacuees, for expenditures for transportation, food, clothing, medicines and medical care, and like items.

Article VII—Supplementary Agreements Inasmuch as it is probable that the pattern and detail of the machinery for mutual aid among two or more states may differ from that among the states that are party hereto, this instrument contains elements of a broad base common to all states, and nothing herein contained shall preclude any state from entering into supplementary agreements with another state or affect any other agreements already in force between states. Supplementary agreements may comprehend, but shall not be limited to, provisions for evacuation and reception of injured and other persons and the exchange of medical, fire, police, public utility, reconnaissance, welfare, transportation and communications personnel, and equipment and supplies. Article VIII—Compensation Each party state shall provide for the payment of compensation and death benefits to injured members of the emergency forces of that state and representatives of deceased members of such forces in case such members sustain injuries or are killed while rendering aid pursuant to this compact, in the same manner and on the same terms as if the injury or death were sustained within their own state.

Article IX—Reimbursement Any party state rendering aid in another state pursuant to this compact shall be reimbursed by the party state receiving such aid for any loss or damage to or expense incurred in the operation of any equipment and the provision of any service in answering a request for aid and for the costs incurred in connection with such requests; provided, that any aiding party state may assume in whole or in part such loss, damage, expense, or other cost, or may loan such equipment or donate such services to the receiving party state without charge or cost; and provided further, that any two or more party states may enter into supplementary agreements establishing a different allocation of costs among those states. Article VIII expenses shall not be reimbursable under this provision. Article X—Evacuation

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Such expenditures shall be reimbursed as agreed by the party state from which the evacuees come. After the termination of the emergency or disaster, the party state from which the evacuees come shall assume the responsibility for the ultimate support of repatriation of such evacuees.

A. This compact shall become operative immediately upon its enactment into law by any two (2) states; thereafter, this compact shall become effective as to any other state upon its enactment by such state.

Nothing in this compact shall authorize or permit the use of military force by the National Guard of a state at any place outside that state in any emergency for which the President is authorized by law to call into federal service the militia, or for any purpose for which the use of the Army or the Air Force would in the absence of express statutory authorization be prohibited under Section 1385 of title 18, United States Code

Article XI—Implementation

B. Any party state may withdraw from this Compact by enacting a statute repealing the same, but no such withdrawal shall take effect until 30 days after the governor of the withdrawing state has given notice in writing of such withdrawal to the governors of all other party states. Such action shall not relieve the withdrawing state from obligations assumed hereunder prior to the effective date of withdrawal.

C. Duly authenticated copies of this compact and of such supplementary agreements

as may be entered into shall, at the time of their approval, be deposited with each of the party states and with the Federal Emergency Management Agency and other appropriate agencies of the United States Government.

Article XII—Validity

This Act shall be construed to effectuate the purposes stated in Article I hereof. If any provision of this compact is declared unconstitutional, or the applicability thereof to any person or circumstances is held invalid, the constitutionality of the remainder of this Act and the applicability thereof to other persons and circumstances shall not be affected thereby. Article XIII—Additional Provisions

Section 3. This act shall take effect and be in force for and after its passage.

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Appendix 9: Sample Bulletin STATE OF CALIFORNIA H arry W. Low, Insurance Commissioner DEPARTMENT OF INSURANCE 300 Capitol Mall, Suite 1700 Sacramento, CA 95814

www.insurance.ca.gov Potential Claims Issues

After A Large Catastrophic Event

California Department of Insurance, Claims Services Bureau

Additional Living Expense (ALE)

(916) 492-3500 (916) 445-5280 (fax)

October 4, 2001

Below are several claims handling issues that were documented by our department in reviewing consumers’ claims complaints after the occurrence of a large catastrophic event. These are some of the claim complaint issues that were found to be more prevalent by our department after large California catastrophic events such as the 1994 Northridge Earthquake, the 1989 Loma Prieta Earthquake and the 1991 Oakland Firestorm.

• Many times, insurance companies did not fully explain ALE coverage to their insured’s when the loss first occurred. This sometimes resulted in misunderstandings, such as the insureds not making claims for this type of expense or insureds claiming ALE losses that were not covered by their insurance policy. If a brochure or written guide for ALE were to be given to the insured at the beginning of a claim, it would assist in helping to avoid disputes regarding this coverage.

• Confusion regarding applicable time frames and monetary limits that apply regarding ALE. Any ALE limits regarding the total amount payable and any applicable time limit for this coverage should be clearly explained to the insured, soon after the claim is first made.

• Lack of available housing in the same geographic area as where the loss occurred. This may cause an extreme inconvenience to the insured if the insured cannot be relocated to the same general vicinity as where they lived when the loss occurred.

Unusually High Claim Volume • The higher volume of claims that occurs after a catastrophic event forced many

insurance companies to use claim representatives that were not licensed and not familiar with the claim handling regulations that exist in the State of California. Often, there was no direct insurance company supervision over claim representatives to make sure that claims were handled in accordance with claim handling regulations.

• Due to high claim volume, there often was a lack of claim support personnel to take phone calls from insureds and handle general claims questions over the phone. Field claim representatives were not able to promptly respond to phone inquiries because they were inspecting losses during daytime hours.

• Claims sometimes were quickly handled and not thoroughly investigated. This may result in claims being underpaid because insurance companies and/or their representatives may attempt to quickly close claim files in order to reduce a high claim case inventory.

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Page 2

Public Adjusters and Attorney Represented Claims

Documentation of the Loss By the Insured

• Many catastrophic claims are very complex and may take many years to fully investigate and settle. Claim representatives or independent claim representatives were brought in from other geographic areas and sometimes, as many as twenty to thirty claim representatives would work on one particular claim file. This often resulted in extreme frustration being incurred by the insured and delays in the handling of a claim because of the lack of continuity and understanding of the claim file issues and because of the many claim representatives that handled the claim.

• Many claim files were not documented clearly or losses were not fully investigated for coverage by the insurance company claim representatives. It is essential to make sure that all communications to the insured are clearly documented regarding the content of the conversation and the date that information was conveyed with the insured. Detailed claim file activity logs and written correspondence should be sent to confirm all communications with insureds.

• Some insured’s were overwhelmed after the catastrophic event occurred and were quickly solicited by and signed contracts with public adjusters or attorneys regarding the handling of their claim. This often resulted in an additional claims handling burden for insurance companies because, many times, public adjusters and attorneys made more frequent communications to the insurance company, apparently seeking to maximize any insurance policy benefits or to attempt moving their client’s claim to a priority status over other, unrepresented insureds.

• Some insureds did not understand the fees that would be charged by public adjusters or attorneys when they contracted to be represented by them and thought that insurance companies would pay the additional expenses charged by their public adjusters or their attorneys.

• Many times, after a catastrophic claims event, any documentation for items being claimed or the actual items was destroyed by the loss event. This often resulted in extreme difficulty for the insureds to try and “prove” their loss to the insurance company. Also, insurance companies were often put in the difficult position of attempting to pay what was owed, with little or no documentation and to also not pay for “overstated” claims.

• If engineers, architects, contractors or other experts were needed by the insured to help establish their loss or the value of their loss, many times, qualified professionals were in very short supply. This helped to delay the evaluation and documentation of the loss as well as to delay any necessary structural repairs.

• Many times, especially with earthquake claims, there was a difficulty in determining the causation of damages. Sometimes, the damages were due to earth movement or settlement or causes other than an earthquake. The determinations of these causes were often difficult. Also, some reported damages were pre-existing damages that may have never been noticed by the insured or the insured may have not reported the damages to the insurance company before. Damages that were caused by the concussive effects of an explosion may be similarly difficult to discover and to estimate repairs.

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• After the 1994 Northridge Earthquake, many out of state soils and structural engineers that were not licensed in the State of California, were hired by insurance companies because there was a shortage of available local engineers after this catastrophic event. Some consumers also hired out of state engineers to assess their damaged structures. Some insurance companies later disallowed the conclusions of those engineers’ reports because the engineers may not have been well versed in the building code requirements in this state or may have had their engineering expertise in areas other than soils or structural engineering.

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PAGE 3 POLICY STATUTE OF LIMITATION

INSURED RELIANCE ON THE INSURER TO COMPLETELY ADDRESS ALL AREAS OF LOSS

• The applicable statute of limitation in an insurance policy may be too restrictive of a time period after a large catastrophic claims event occurs. Sometimes insureds do not want to report their losses immediately, believing that there are too many other claims already reported to the insurance company and they may not receive prompt service. Some insureds may also believe that other entities have suffered more severe losses than their own, so they choose to report the claim to the insurance company at a later date. The insured may not be fully aware of an insurance policy’s immediate claim reporting requirements and may also not be aware of the applicable statute of limitation in the policy.

• Some insureds, in catastrophic claims situations, cannot or are not fully aware that they need to take an active role in the handling of their claim. Insureds may not request that explanations of settlements, coverages or any agreements made with the insurance company, be confirmed in writing. This may result in frustration by insureds because agreements or their understanding of policy coverages may not be correct. The claim also may not be documented completely when a claim file is transferred from one claim representative to another for handling when a claim representative leaves a loss location when their assignment is completed.

This list is not intended to be all-inclusive. The intent of this list is to highlight some of main problem areas regarding claims handling that have occurred in the State of California after a large catastrophic insured event.

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Appendix 10: Midwest Zone’s Ending Arguments Gently, Legally and Economically (E.A.G.L.E.) Introduction

Complaints remain unresolved for a number of reasons, for example: 1. there is a question of fact that cannot properly be ruled upon by a claims examiner;

4. the expectations of the complainant may be unreasonable.

This paper will review what the process of mediation is, and is not; discuss the brief history and development of the E.A.G.L.E. mediation program; and give two examples of the types of policyholder complaints that have actually gone to mediation.

Each year, the Oklahoma Insurance Department handles well over 50,000 complaints and inquiries, mostly through its Consumer Assistance/Claims Division. Even after going through the agency’s consumer assistance process, there are still some people who are unsatisfied by the outcome.

2. there is a question of law that is best left to a court to decide; 3. the conduct of an insurer may be offensive to a reasonable person, but it does not

violate any statute that is enforced by the Department; or

The unresolved complaints often result in litigation. At least some of those unresolved complaints could undoubtedly be resolved, and litigation avoided, if the parties sat down with each other and made a commitment to listen to each other and try to work out their differences. Because of these unresolved complaints, the Oklahoma Insurance Department created the E.A.G.L.E. (Ending Arguments Gently, Legally and Economically) mediation program. The program utilizes mediators trained by the Oklahoma Supreme Court to help unhappy consumers and insurance companies work toward an agreement that puts their conflict to rest. The goal is to get the disputes resolved before they get out of control, and before the parties have punted to their respective attorneys.

As a result of mediating consumer complaints, there is likely to be some reduction of lawsuits that are filed against insurers, and a corresponding reduction in adverse publicity that the insurance industry receives. Complainants who achieve resolution through mediation are likely to be more satisfied than those who have gone through the entire litigation process.

Another function of the E.A.G.L.E. program is to help settle administrative disciplinary matters. The Legal Division of the Department opens about four hundred disciplinary files each year because of allegations made against insurers, agents, adjusters, bail bondsmen, and others who are licensed and regulated by the Insurance Department. Some of those cases, especially those that are more complex, lend themselves to pretrial Settlement Conferences conducted by someone other than the Hearing Examiner assigned to try the case. The Settlement Conferences can be used to facilitate discussion between the parties, provide neutral evaluation and feedback, reach agreement on the issues or procedure regarding discovery or trial, and identify the issues that remain for trial. However, settlement conferences are expected to be relatively rare in comparison to complaint-related mediations.

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The Mediation Process

Mediation is suited to any dispute in which

• There is no need to set a legal precedent or example

•

• The disputants want or need to maintain relations

When Insurance Commissioner Carroll Fisher took office in January of 1999, he announced that he was bringing a different attitude to the office. He believed that the Department was spending too much time and money pursuing complaints and violations that could, and should, be resolved less formally. Commissioner Fisher said he wanted litigation to be the exception, and he wanted to start resolving more problems through negotiation, mediation, and arbitration. Whenever possible, he wanted to help end disputes effectively, efficiently and economically.

Mediation is defined in Oklahoma’s Dispute Resolution Act3 as “the process of resolving a dispute with the assistance of a mediator outside of a formal court proceeding.”4 If someone were trying to educate herself about mediation by just reading the statute, this definition would not be particularly helpful.

A better description is that “Mediation is ‘negotiation through an intermediary.’ Two or more parties meet with a neutral third party, who guides the negotiation process . . . and helps the parties arrive at a win-win settlement.”5

• A negotiated settlement is desired

• The parties wish to keep the proceedings confidential • Tensions and emotions are impeding communication

Time is a concern 6

Mediation is not arbitration, although it is not uncommon to hear the terms improperly used interchangeably. An arbitrator, or a panel of arbitrators, will render a decision on the facts presented to them. A mediator does not impose a decision on the parties. In mediation, the decision whether to settle a dispute always remains with the parties.

Before parties agree to work with a mediator, they often ask if the mediation will be binding. When a party asks this, it is obvious that the process needs to be explained to him. Arbitration may be binding or non-binding. However, in mediation the goal is agreement. If the parties cannot come to an agreed settlement during mediation, all parties may walk away without having lost any of their rights.

History and Development of the E.A.G.L.E. Mediation Program

Within a few weeks after Commissioner Fisher took office, attorneys from the Department had met with Sue Tate, Director of the Alternative Dispute Resolution System (ADRS) that operates out of the Administrative Office of the Courts. A proposal for the E.A.G.L.E. program was submitted to Oklahoma Supreme Court’s Dispute Resolution Advisory Board, and the plan was approved. Since then, two groups of mediators have been trained using a five-step model of

3 12 O.S. § 1801, et seq. 4 12 O.S. § 1802(2) 5 Martindale-Hubbell Dispute Resolution Directory 1995, at p. 3-21. 6 id.

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mediation. The training is provided by the ADRS, and is similar to the training that is received by mediators who staff the various Early Settlement centers across the state. However, the training program is customized to include some of the fundamentals of insurance law, as well as role-playing examples of the types of disputes that mediators for the Department are likely to encounter. The E.A.G.L.E. program is designed to resolve disputes early, hopefully before they escalate to the level of accusations of bad faith. It is particularly helpful where communications have broken down between a representative of the company and its policyholder, or where there are multiple parties to a dispute. For example, the parties may include an agent, adjuster and insured; or adjuster, claimant, and repairman (for examples based on real-life cases, see the following section).

Disputes can arise in any field of insurance. However, property and casualty claims seem to generate a disproportionate number of complaints. Two examples of common complaints, adapted from actual cases that have been resolved through mediation, are given below:

Homeowner’s Insurance: Tornado Damage John and Mary Homeowner an elderly couple who owned a house that was in the path of the tornado that hit Moore, Oklahoma on May 3, 1999. Fortunately, they were no injured, although their brick house looked like it had been bombed. They immediately reported the loss to their insurance agent, who passed it along to the claims office. The claims office approved an advance payment for living expenses, and Mr. and Mrs. Homeowner rented another house while they waited for theirs to be repaired.

Although the program is in its infancy, it has already generated interest among insurance regulators and companies across the nation. Several states are considering the possibility of copying the E.A.G.L.E. program. The National Association of Insurance Commissioners (NAIC) has been watching the E.A.G.L.E. program with great interest. NAIC has already included an article on the program in one of its publications, and it is currently working on a draft of a “best regulatory practices” white paper that includes a discussion of the E.A.G.L.E. program.

Oklahoma City University has produced a video about the E.A.G.L.E. program, and it is be available to regulators and companies who want more information.

Examples of Problems that Arise in The Handling of

Property and Casualty Claims Insureds, claimants, agents, adjusters, contractors, body shops, doctors, hospitals, . . . all have at least two things in common: people and money. When those two ingredients are combined, with a dash of personal tragedy thrown in as a catalyst, conflict is inevitable.

7 are

Before the adjuster was able to inspect the damage, two contractors came by and wrote estimates for Mr. and Mrs. Homeowner. One of the contractors said that the house should be bulldozed and rebuilt from the ground up, at an estimated cost of $120,000.00. The second contractor said that the house could be repaired for an estimated cost of

7 All names in these examples, and some of the facts, have been changed.

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$105,000.00, but several items were excluded from the estimate, because they could not be inspected until some of the damaged portions were removed. The “open” items could increase the repair cost by as much as $22,000.00. When the insurance adjuster inspected the loss, he generally agreed with the second contractor concerning the repair of the house, and with the possibility of additional expense for “open” items. However, the adjuster’s initial estimate of the loss was $83,000.00.

Automobile Insurance: Medical Payment Coverage

After three weeks of treatments, Dr. Backcracker released Ms. McFeelnogood from his care. Before paying the bill, her insurance company had a registered nurse review the medical records to determine whether the treatment was reasonable and necessary considering the nature and extent of her injuries. They also plugged the charges into a computer program to see whether the charges were in line with what other doctors in the area charge for similar services.

The adjuster and the contractor were unable to reach an agreement on cost of repairs. Words were exchanged between the two, and the adjuster put the file at the bottom of the stack. After several weeks, the adjuster called Mr. Homeowner and told him that he was going to cut off the payments for additional living expense, because repairs had not yet begun. Mr. Homeowner called the contractor to see why he was delaying the work. The contractor told him that insurance company was not willing to pay enough to repair the house. The contractor told Mr. Homeowner he should put some pressure on his insurance company. Mr. and Mrs. Homeowner had no idea what a “reasonable price” for the repairs should be, and they were at a loss for how to get thing moving. They just wanted their house to be repaired or rebuilt, and they thought they had done what they were supposed to do. They felt like they were stuck in the middle of a Hatfield and McCoy feud, and they did what a lot of people do in such a situation: they called the Insurance Commissioner.

Melba McFeelnogood was stopped at a stoplight when she was rear-ended by a daydreaming teenager who had no insurance. She had some neck pain, but decided against going to the doctor. When her pain persisted a few days later, she called her insurance agent, “Smilin’ Jack” Goodhands.8 Smilin’ Jack recommended that she make an appointment with Dr. Jack Backcracker. He assured her that the treatment would be paid under her policy’s medical payments coverage.

Of the $1900.00 that Dr. Backcracker billed, the insurance company decided that $400.00 was for massage therapy that was not necessary, and therefore not covered under the policy. Of the remaining $1500.00, they decided that the doctor’s charges were out of line with what other doctors charge for the same procedures. Therefore, they reduced the bill by another $600.00, and paid a total of $900.00. Dr. Backcracker turned Ms. McFeelnogood over to a collection agency for the $1000.00 balance that remained on her account. Ms. McFeelnogood complained to her agent, since

8 A fictional name that is not intended to imply that the agent was employed by a company that uses “good hands” as part of its advertising.

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her agent is the one who originally recommended Dr. Backcracker. Smilin’ Jack called the adjuster, who said his hands were tied. He could only pay what the policy allowed, and that only included charges that were reasonable and necessary and related to the accident. His opinion was that he had only declined charges that were unreasonable or unnecessary, and therefore not covered by the policy. Ms. McFeelnogood felt like she had been steered wrong by her agent, and as a result she had a collection agency breathing down her neck. She did what people do when they feel helpless: she called the Insurance Commissioner. Outcomes The parties in each of the preceding examples agreed to use a mediator, and both of the disputes were settled in full. In each case, all of the participants began the session fairly entrenched into their respective positions. However, as the mediator helped the participants to see things in a different light, those positions began moving toward each other.

Both of the examples given required some cooperation from third parties: a contractor and a chiropractor, respectively. Not all disputes will involve outside parties, but it is not unusual in insurance disputes.

Mediation will not work in every case. However, it may help to open the lines of communication, which could result in settlement days or weeks after the session. It also may help to prevent bad faith lawsuits by getting problems resolved before they reach the undefined point of bad faith. Conclusion For many, the sight of an eagle soaring on the wind might evoke feelings of strength, power and independence. When a person becomes so frustrated about a conflict that he seeks the help of a government official, one can assume that the person has drifted into feelings of anger and victimization. He wants to get back those feelings of strength, power, and independence, and views the government agency as the vehicle of restoration. Oklahoma Insurance Commissioner Carroll Fisher has long admired the eagle, as evidenced by the fact that numerous paintings and statues of eagles decorate his office. The E.A.G.L.E. mediation program is an effort to restore feelings of strength, power and independence that may have been lost in an impersonal insurance transaction. The program reflects the value that decisions should be made by the people who are personally affected by a dispute.

Specific questions about the E.A.G.L.E. mediation program may be addressed to Michael Ridgeway, Assistant General Counsel and E.A.G.L.E. Program Director, Oklahoma Insurance Department, P.O. Box 53408, Oklahoma City, OK 73152, Telephone (405) 521-2746. You may also want to visit the Oklahoma Insurance Department’s website at www.oid.state.ok.us. It includes information about the E.A.G.L.E. program, as well as pages devoted to each of the other divisions in the Department.

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http://www.oid.state.ik.us/

280

Appendix 11: Identification of Catastrophe Perils

ca·tas·tro·phe (kƏ-tăs trƏ-fē) n.

4. A sudden violent change in the earth’s surface; a cataclysm.

Source: The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2000 byHoughton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

dis·as·ter (dĭ-zăs tƏr, -săs -) n. 1.

a. An occurrence causing widespread destruction and distress; a catastrophe.

2. Informal.b. A grave misfortune.

Obsolete. An evil influence of a star or planet.

3 in

Source:

1. A great, often sudden calamity.

2. A complete failure; a fiasco: The food was cold, the guests quarreled the whole dinner was a catastrophe.

3. The concluding action of a drama, especially a classical tragedy, following the climax and containing a resolution of the plot.

[Greek katastrophē, an overturning, ruin, conclusion, from katastrephein, to ruin, undo : kata-, cata- + strephein, to turn; see streb(h)- in Indo-European Roots.]

A total failure: The dinner party was a disaster. 3.

[French désastre, from Italian disastro : dis-, pejorative pref. (from Latin dis-. See dis-) + astro, star (from Latin astrum, from Greek astron. See ster- Indo-European Roots).]

The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

Perils subject to the occurrence of catastrophic events will be identified and discussed. When an event is identified which may cause the loss of life, disruption of the general population, or other interruptions of daily living, it is appropriate to designate the event as a catastrophe peril. It is important to note that not all catastrophe perils are covered under either personal or commercial insurance contracts.

A. Collapse

A collapse is a cave in or falling together of a roof or walls of a building. The collapse of a building may be considered a catastrophic event calling for activation of the Disaster Response Plan. The magnitude of the collapse must be considered in the determination of whether or not the collapse should be designated a disaster. This will most likely to occur in large public facilities, including stadiums, arenas, schools and office buildings.

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http://www.dictionary.com/search?q=00-database-info&db=ahd4

B. Earthquake

C. Environmental Contamination Environmental contamination is the corruption or pollution of the earth by dangerous chemicals or gasses. It can occur from a number of circumstances. Some of these circumstances have catastrophic potential. This peril can occur naturally, however; it is generally considered to be caused by human endeavors. Manufacturing processes sometimes pose great hazards to the environment.

D. Fire Fire is defined as the active burning of materials characterized by the heat and light of combustion. For insurance purposes, distinction is made between hostile fire and friendly fire. A disaster may be declared when a hostile fire reaches sufficient magnitude as to become a conflagration destroying significant amounts of property and possibly endangering numerous lives.

An earthquake is an unpredictable natural phenomena where the ground shakes or ripples. Earthquakes are caused by underground volcanic forces or by shifting of rock beneath the earth’s surface. Damage from earthquakes can be widespread causing loss of life, fire, damage to infrastructures such as roads, tunnels and bridges, and structural damage to buildings.

E. Flood A flood is defined as the overflowing of water onto land that is usually dry. This peril can represent a significant disaster exposure as entire towns may be inundated following heavy rainfall or the melting of snow. F. Hurricane A hurricane is a violent cyclonic windstorm that typically occurs in the tropics. Wind speeds range from 70 miles per hour to well in excess of 200 miles per hour. They are often accompanied by significant rainfall, thunder and lightening. Hurricanes present major catastrophe potential as they are capable of completely devastating virtually everything in its path. Hurricanes may cover wide areas of land and travel significant distances inland causing widespread destruction of property and loss of life. G. Meteorites or Other Objects from Space A meteorite is a metallic or mineral mass that has fallen to earth from outer space. Meteorites and other objects falling from space present a potentially disastrous situation. If scientists are correct and a large meteorite is responsible for the extinction of the dinosaur, it is possible that any preparations for such a disaster would be insufficient. Preparations can be made for catastrophes of a less monumental nature. In addition to exposure from meteorites, it is possible for man-made objects such as aircraft, satellites, and other space vehicles to cause significant damage to property and loss of life if they land in populated areas.

282

H. Nuclear Disaster A nuclear reactor is a device for initiating and maintaining a controlled, nuclear chain reaction in fissionable fuel for the production of energy. If a nuclear reactor becomes uncontrolled, a significant catastrophe exposure results. Fissionable material may damage significant amounts of property through contamination and may endanger human life.

L. Terrorist Act

A person or group of persons who use terror or violence to intimidate or subjugate others are known as terrorists. Terrorists often use bombs or incendiary devices to threaten lives and damage property. They may kidnap victims and demand ransom payments. When a terrorist targets the public area or building, a disastrous situation may result.

I. Oil Spills An oil spill is a form of environmental contamination where oil escapes from its usual container or vessel. Ocean-going tankers present significant disaster exposure due to the large volume of oil transported within the ship. If the tanker were to capsize or run aground, significant property damage and damage to the environment may occur. On land, tanker trucks are used to transport petroleum products. These also present significant disaster exposure, particularly, if an accident occurs in a populated area. J. Riot A riot is a wild or violent public disturbance by three or more people unlawfully assembled together. Riots possess catastrophic possibilities as the individuals responsible have little or no regard for the property they damage or the lives they endanger. K. Sinkholes A sinkhole is a hollow or hole into which surface water drains, especially such a hole worn through rock and leading to an underground channel. Sinkholes present a catastrophic exposure to life and property as buildings collapse into the underground channels. The magnitude of the collapse will determine whether a disaster should be declared.

Definition of “Act of Terrorism” (as adopted by NAIC Plenary, November 2001) “Act of Terrorism” is defined as an act of violence or force or an act dangerous to human life, health, tangible or intangible property or infrastructure, carried out by a person or group that is not a sovereign state, directed towards overthrowing or influencing the government of a sovereign state. As defined in Title 22 U.S.C. Section 2656f(d), “terrorism” is defined as: “premeditated, politically motivated violence perpetrated against noncombatant targets by sub-national groups or clandestine agents.”

283

M. Tornado A tornado is a violent twirling wind that is accompanied by a rapidly rotating funnel-shaped cloud that is capable of destroying everything in its path. The path of destruction of tornadoes is typically rather narrow, although tornadoes have been known to exceed one mile in width. Tornadoes are often accompanied by significant rainfall, thunder, and lightening. They present a significant catastrophe exposure when populated areas are within their path.

A winter storm is an atmospheric disturbance characterized by strong winds and heavy snowfall or ice accumulation. It presents catastrophic exposure to property damage and significant loss of life depending on the magnitude of the storm. Life-threatening situations can occur due to exposure to the elements and loss of services, such as heat and water. In addition, winter storms can significantly damage property through collapse and other damage due to ice and snow accumulation. Travel can be hazardous to property and life during a winter storm.

N. Tsunami A tsunami is a tidal wave that has been initiated by an earthquake beneath the ocean floor. It presents a significant catastrophe hazard to exposed shorelines. O. Volcanic Eruption A volcano is a vent in the earth’s crust through which rocks, dust, ash, or molten rock in the form of liquid magma are ejected. A volcano can be defined as active while it is erupting; dormant during a long period of activity; or extinct when all activity has ceased. Volcanoes are usually characterized by a cone-shaped hill or mountain made up primarily of volcanic materials that have built up around the vent. Violent eruptions of volcanoes present major catastrophe hazards. Dust and ash can blanket the air and smother vegetation threatening human life and property. Additional exposure from the lava flow causes significant damage to property. Volcanoes are capable of destroying entire towns or areas. P. Windstorm A windstorm is a storm containing a violent wind accompanied by little rain or snow. Windstorms present a catastrophe exposure depending on the magnitude of the storm and the speed of the wind. Q. Winter Storm

284

Appendix 12: Insurance Partnerships for Improved Disaster Recovery Florida Emergency Management/Insurance CommunityCooperation Pact “Partners in Recovery” is a cooperative pact activated during the central Florida wildfires, demonstrating that the agreement is now valuable whenever Florida faces a catastrophic event triggering losses that may be covered totally or partially by insurance. The 1998 hurricane season was one of the busiest on record. While Florida’s direct losses were limited, Hurricanes Georges and Earl and Tropical Storm Mitch required total implementation of the plan for the first time, including deployment of Insurance Disaster Assessment Teams in the Florida Keys and northwest Florida. “Partners in Recovery” provides for the following: (1) year-round communications between the emergency management and insurance communities; (2) an insurance liaison team supervised by FIC whenever the State Emergency Operations Center in Tallahassee is activated for an extended period; (3) Insurance Disaster Assessment Teams to go to the disaster area as soon as possible and evaluate damages and adjuster needs; and (4) special State Emergency Response Team (SERT) permits to facilitate entry into damaged areas by insurance company adjusters. This unprecedented mutual cooperation pact between emergency managers and the insurance community is being copied by insurance companies and emergency management agencies in several other states, including South Carolina, North Carolina, Georgia, California and New York. Here are the major elements of this unprecedented agreement: Emergency Management/Insurance Community Liaisons: The agreement calls for a system to acquaint emergency managers and insurance representatives with each other before a storm appears and promote cooperation when a catastrophe occurs. The state emergency management division (DEM) has divided the 67 counties into seven areas, with a coordinator for each area. Members of the insurance community are being designated by Florida DOI and FIC to work with each DEM coordinator and the individual county managers in that area. Insurance community contacts also are being designated for the key counties facing a hurricane threat - Dade, Broward, Palm Beach, Tampa, Hillsborough, Duval and extreme west Florida - Escambia, Okaloosa and Walton. Contacts will be designated for other counties when possible and especially when it is requested by the county emergency management director. The insurance community contacts are designated members of the Florida Association of Insurance Agents. Bill Bailey, Insurance Information Institution consultant, Boston/Fort Lauderdale, is a special insurance liaison under this plan for Dade, Broward and Palm Beach counties. The area representative - and county representative when one is appointed to serve under the area representative - will be the insurance community’s contact point for local emergency management. He or she will arrange to have an insurance community representative in the impacted local emergency operations center during a catastrophe threat to coordinate with the insurance team in the state EOC. This is a sensitive issue in some counties and clearance must be secured ahead of time. Between hurricane seasons, the representative will be responsible for requests for community presentations and educational materials and attending DEM area coordination meetings, especially sessions just prior to the hurricane season. Liaison on a state level is provided by the Insurance Council. State level responsibilities

285

include regular contact with the Florida DEM, including Jim Loomis, Recovery Administrator; and with the Florida DOI, including Jim McCloy, Catastrophe Coordinator. These responsibilities also include participation in the Florida Emergency Preparedness Association annual meeting, the Governor’s Hurricane Conference, National Hurricane Conference and other meetings as appropriate. It also included during 1996 preparation and distribution to county emergency managers of 20,000 copies of “Surviving the Storm,” an important brochure on insurance claims following a hurricane. Insurance Liaison Team: The insurance community will organize an insurance liaison team to staff a seat at the Recovery Desk in the State Emergency Operations Center in Tallahassee when it is open in anticipation of and in response to a disaster. The team will be directed by the Insurance Council. It will receive information on the storm which will be passed along to the insurance industry through the Hurricane Advisory Network. The Hurricane Advisory Network is located on the FIC home page at http://www.flains.org. Team members will prepare reports for this page. Reports will be issued when warranted, but no less often than every six hours. To supplement the reports, the team will post on the home page official advisories from the National Hurricane Center in Coral Gables. A report or reports by the Insurance Disaster Assessment Team will be posted by the EOC group on the home page once available. Other appropriate web sites will be linked to this page. Insurance Disaster Assessment Team: A six-member team called the Insurance Disaster Assessment Team will go to the disaster area as soon as possible - with the permission of local and state emergency management officials - to evaluate the damage and such things as the number of adjusters needed. IDAT will conduct its own damage assessment when conditions permit and it is appropriate. Team members may be assigned to other assessment teams or may concentrate on reviewing video tapes and other already complied information on the disaster, depending on the circumstances. The IDAT report will include important information to assist the state in seeking a presidential disaster declaration and will be released immediately to local emergency management offices and the state DEM and the Insurance Liaison Team in the state EOC. The liaison team will disseminate the report to the insurance community through the Insurance Council’s home page and, when possible, through a special telephone conference call briefing. Members of the assessment team will be selected by DOI. Adjuster/Agent Access and Identification: After the Insurance Disaster Assessment Team authorized in our mutual cooperation pact estimates needs, adjusters and agents representing individual companies will be able to go into the area, probably within 24 hours after the storm. The new agreement has expedited their entry by establishing passes to be issued by the state DEM and distributed by the Insurance Council to designated persons in advance of hurricane season. The passes are a special issue of Florida DEM’s State Emergency Response Team (SERT) permit for insurance adjusters and other designated representatives. An important goal of this element of the mutual cooperation pact will be to ensure access to insurance adjusters in a hurricane impacted area sent in from outside to provide assistance. We are also making available a limited number of insurance SERT badges to the Florida Association of Insurance Agents and Professional Insurance Agents of Florida. The SERT badges will not be used until permission has been received from the state DEM and the impacted local emergency management offices. Recovery Assistance: The Insurance Council, working with the Florida Association of Insurance Agents, PIA of Florida and other agents associations and the Florida insurance department, will oversee and coordinate claims-settling activities of individual insurers

286

http://www.flains.org/

following a hurricane. Regular reports will be provided to local and state DEM officials. Special attention will be paid immediately following a hurricane to the collection of information needed by the state for its disaster declaration petitions. FIC will serve as the industry’s contact point when problems with the claims recovery process are identified by the insurance department and the local or state emergency management community. The Council will coordinate with the state DEM’s recovery team on a long-term basis during the months following a disaster. Depending on the scope of the disaster, the Council and the Insurance Information Institute in New York may provide a long-term recovery assistance presence. The template for this activity is the Hurricane Insurance Information Center, which was operated by the industry in Miami’s Kendall area for 18 months following Hurricane Andrew and as a more limited activity for several weeks following the tornadoes in Oklahoma City in the spring of this year. Any long-term insurance recovery program in a hurricane damaged area must involve agents. We expect the role of “captive agents” and FAIA, PIA and other agents associations in long-range recovery activities to be significant.

Prepared by Sam Miller, Vice President Florida Insurance Council (850) 386-6668, ext. 226

[email protected]

Florida Insurance Council , P.O. Box 13686 Tallahassee, FL 32317-3686

287

288

Appendix 13: Sample Insurance Community Liaison Disaster Reporting Form Pre Disaster Survey General Instructions

1. “Readme”—this file contains instructions on how to complete the two required

report files. The report files request data on a countywide basis for:

Amount of Insurance In-force (Gross Exposure)

01—Fire 02.1—Allied Lines 02.2—Multiple Peril Crop

03—Farmowners Multiple Peril 05.1—Commercial Multiple Peril (Non-Liability Portion) 12—Earthquake

3. “PersRpt”—contains a table for entering the required information covering the personal property portion of the premiums, reported on Page 15 of the New York Annual Statement, for the following lines:

04—Homeowners Multiple Peril 12—Earthquake

Responses must be submitted to the Department in an electronic format. Hardcopy survey responses are not required and any hardcopy survey responses submitted without the required diskette will not be processed. Survey responses should be accurately completed in accordance with the instructions and returned within 60 days after publication of the Circular Letter:

This survey can be completed by downloading the various files in Lotus 123® or Microsoft Excel®, from the Department’s web site located at http://www.ins.state.ny.us/disaster.htm

Each version of the survey (Lotus 123® or Microsoft Excel®) contains three files:

Number of Polices In-force 2. “CommRpt”—contains a table for entering the required information covering the commercial property portion of the premiums, reported on Page 15 of the New York Annual Statement, for the following lines:

02.3—Federal Flood

01—Fire 02.1—Allied Lines 02.3—Federal Flood 03—Farmowners Multiple Peril

Those insurers unable to download the files from the web site may submit the attached sheet to request a diskette by US Mail, or by an e-mail message addressed to [email protected] to request the files by return e-mail.

289

New York State Insurance Department

25 Beaver Street

Questions as to the content of the survey (coverages, etc.) may be directed to:

Principal Insurance Examiner Phone: (212) 480-5501 E-mail: lcilione @ ins.state.ny.us

Property Bureau—2nd Floor

New York, NY 10004 Attn: Vincent Mazzarella

As an alternative, you may also submit the file through the Internet by attaching it to e-mail addressed to [email protected].

Ms. Lucy Cilione

Any questions as to the technical aspects of the diskette filing may be directed to:

Mr. Vincent Mazzarella Senior Insurance Examiner Phone: (212) 480-5590 E-mail: [email protected]

Your cooperation in furnishing timely and accurate responses is essential to the success of this endeavor and is appreciated by the Department and the people of New York.

290


Diskette Order Form Enter the following information: Insurer Name Address City State Zip Code Contact Person Salutation (Mr., Ms., etc.)

First, MI

Telephone #

Last name

Address—(if different frominsurer) City State Zip Code

E-mail address

Microsoft Excel [ ]®

Diskette format requested (check one)

Lotus 123® [ ]

291

New York State Insurance Department Instructions

For Completion of Special Report File (S) (Excel Version)

5. Do Not Change The Position or Content of Any Cells on the Report Files.

1. The “CommRep.xls” an “PersRep.xls” files contain the table for entering information

on Commercial and Personal Property Lines, respectively, required to complete this Special Report.

2. It is strongly recommended that you immediately back-up the “CommRep.xls” and

“PersRep.xls” files to your hard drive before inputting any data. 3. Please rename the “CommRep.xls” file, by saving it with the five-digit NAIC number

of the reporting insurer, followed by the letter “C.” For example, if your NAIC number were 12345, you would save the file as “12345C.xls.”

Similarly, rename the “PersRep.xls” file, by saving it with the five-digit NAIC number of the reporting insurer, followed by the letter “P.” Therefore, if your NAIC number were 12345 you would save the file as “12345P.xls.” Create as many files as necessary to complete reports on all of the entities in your reporting group.

4. After naming and saving the file(s), open one spreadsheet file, and before entering

any other data, complete the General Information section. In the highlighted blue cells enter your company’s name, NAIC and group number, etc. You should enter information only in the cells highlighted in blue, all other cells in the file are protected, and no entries should be made into them. Note that this year you are asked to indicate the “DATA YEAR,” please indicate the calendar year of the data used in preparing the reports. There will normally be a one-year lag in the data year. For example if you are reporting on April 1, 2002, you should be using data for the calendar year ending December 31, 2001.

6. In the next section—Data Required—Your Company Name, NAIC and Group # will be filled-in automatically if you have properly completed “Step 4.”

In this section (Data Required) you are instructed as to the lines of business that must be included in the data reported (those instructions are repeated below in bold typeface). Please note, when completing the Personal Lines file (PersRep.xls) you should:

292

Include data to reflect the commercial lines portion of premiums reported on Page 15 of the Annual Statement, for the following lines:

01—Fire 02.1—Allied Lines 02.2—Multiple Peril Crop 02.3—Federal Flood 03—Farmowners Multiple Peril 05.1—Commercial Multiple Peril (Non-Liability Portion) 12—Earthquake

Please note, when completing the Commercial Lines file (CommRep.xls) you should:

The table contains three columns: County


01—Fire 02.1—Allied Lines 02.2—Multiple Peril Crop 02.3—Federal Flood 03—Farmowners Multiple Peril 05.1—Commercial Multiple Peril (Non-Liability Portion) 12—Earthquake

Also, in this section (for both the Personal and Commercial Lines Files) you will find the main data entry table.

Amount of Insurance In-force (Gross Exposure) Number of Polices In-force

The first column, labeled “County,” has been completed by the Department. This column contains a listing of all the counties in New York State. In the next two columns, highlighted in blue—indicating they are to be completed by you, the insurer—you must provide: the Amount of Insurance in Force (the dollar value of your Gross Exposure); and the Number of Policies In-force in each of the counties listed, for all of the respective coverages noted above.

7. The final section of the file (Section 3) contains the Affirmation. The name of the

Responsible Corporate Officer should be entered in the blue highlighted space provided and the report should be dated. Next, the affirmation should be printed following the instructions in step (8) below. Then, the printed affirmation must be signed by the Responsible Corporate Officer. A separate affirmation must be submitted for each reporting company.

8. The table below contains the range names that will help you to print the various

parts of this survey for your records. The affirmation is the only printed document you should submit to the Department. Use the appropriate range name to select the desired print items, and then print as you normally would.

293

To Print Hit Select Range Section I General Information F5 (GoTo) Info Section II Data Required F5 (GoTo) TABLE Section III Affirmation F5 (GoTo) Affirm

If you have no data to report: You are not required to submit Excel report files for entities having no data to report. Instead, in a cover letter, state which company or companies have nothing to report. Give the Name, NAIC number, and Group number of each company and indicate which reports (Commercial and/or Personal Lines) are not being filed electronically.

10. Submission of Report(s) to the Department:

NYSID—Emergency Response Task Force Report

New York State Insurance Department

NEW YORK, NY 10004 Attn.: Vincent Mazzarella, Senior Examiner MARS Unit, 2nd Floor

9. When saving the files for submission to the Department, please be certain you have

used your five-digit NAIC# and the proper letter suffix discussed in step (3) above.

Report file(s) and any cover letters (formatted in Microsoft Word) may be submitted as e-mail attachments to Vincent Mazzarella at: [email protected]

11. If you are unable to make an e-mail submission you should submit your data files

on diskette. Please label your diskette in the following manner:

Company or Group Name(s) Company NAIC Number(s) Group Number Diskettes should be addressed to:

25 Beaver Street

12. If you experience technical difficulties in using these files, please contact Vincent

Mazzarella by phone at (212) 480-5590, or by e-mail at [email protected]

294

1)

General Information

INSURER CONTACT PERSON NAME SALUTATION ADDRESS LAST NAME CITY FIRST, MI

STATE ADDRESS ZIP CODE CITY NAIC CODE # STATE GROUP # ZIP CODE TELEPHONE # FAX NUMBER DATA YEAR E-MAIL ADDRESS

2) Data Required Special Report to the Superintendent of Insurance New York State Insurance Department Emergency Response Project Personal Lines Property Coverages

Include data to reflect the personal lines portion of premiums reported on Page 15 of the Annual Statement, for the following lines:

03 - Farmowners Multiple Peril

01 - Fire 02.1 - Allied Lines 02.3 - Federal Flood 04 - Homeowners Multiple Peril 12 - Earthquake

295

GROUP # NAME NAIC # 0 0 Amount of Number Amount of Number County Insurance of County Insurance of Policies In-Force In-Force Policies

In-Force (Gross

Exposure) (Gross

Exposure) In-Force Albany Oneida Allegany Onondaga Bronx Ontario Broome Orange Cattaraugus Orleans Cayuga Oswego Chautauqua Otsego Chemung Putnam Chenango Queens Clinton Rensselaer Columbia Richmond Cortland Rockland Delaware Saint Lawrence Dutchess Saratoga Erie Schenectady Essex Schoharie Franklin Schyler Fulton Seneca Genesee Steuben Greene Suffolk Hamilton Sullivan Herkimer Tioga Jefferson Tompkins Kings Ulster Lewis Warren Livingston Washington Madison Wayne Monroe Westchester Montgomery Wyoming Nassau Yates New York Cnty Unknown Niagara

3) Affirmation Pre Disaster Report

of the do hereby affirm, under penalty of perjury, that the information contained in this report, including all attached exhibits, schedules, and other supporting information, is true to the best of my knowledge and belief.

Signature of Responsible Corporate Officer

0

I, , the duly authorized Responsible Corporate Officer

0

Date:

296

1) General Information

INSURER CONTACT PERSON

NAME SALUTATION ADDRESS LAST NAME FIRST, MI ADDRESS ZIP CODE CITY GROUP # ZIP CODE TELEPHONE # FAX NUMBER

DATA YEAR

2) Data Required Special Report to the Superintendent of Insurance

New York State Insurance Department Emergency Response Project Commercial Lines Property Coverages


05.1 - Commercial Multiple Peril (Non-Liability Portion)

01 - Fire 02.1 - Allied Lines 02.2 - Multiple Peril Crop 02.3 - Federal Flood 03 - Farmowners Multiple Peril

12 - Earthquake

CITYSTATE

NAIC CODE # STATE

E-MAIL

ADDRESS

297

GROUP # NAIC # NAME 0 0 0 Amount of Number Amount of Number County Insurance of County Insurance of In-Force Policies In-Force Policies

(Gross

Exposure) (Gross

Exposure) In-Force Albany Oneida

Allegany Onondaga Bronx Ontario Broome Orange

Cattaraugus Orleans Cayuga Oswego Chautauqua Otsego

Chemung Putnam Chenango Queens Clinton Rensselaer Columbia Richmond

Cortland Rockland Delaware Saint Lawrence Dutchess Saratoga Erie Schenectady Essex Schoharie Franklin Schyler

Seneca Genesee Steuben Greene Suffolk Hamilton Sullivan

Herkimer Tioga Jefferson Kings Ulster Lewis Warren Livingston Washington Madison Wayne

Monroe Westchester Montgomery Wyoming

Nassau Yates New York Cnty Unknown Niagara

3) Affirmation

I, , the duly authorized Responsible Corporate Officer of the do hereby affirm, under penalty

0

of perjury, that the information contained in this report, including all attached exhibits, schedules, and other supporting information is true to the best of my knowledge and belief.

Date: Signature of Responsible Corporate Officer

In-Force

Fulton

Tompkins

298

Insurance Company Disaster Liaisons Insurance Company(s) Name: Primary Liaison’s Name: Telephone: Cellular Phone: Pager No. : Email Address: Secondary Liaison’s Name:

Telephone: Cellular Phone: Pager No. : Email Address:

299

Insurance Company Catastrophe Team Leadership

Pager No. : Email Address:

Telephone: Cellular Phone:

Back-up Leader’s Name:


Insurance Company(s) Name:

Catastrophe Team Leader’s Name: Telephone: Cellular phone:

Back-up Leader’s Name:


Communications Team Leader’s Name: Telephone: Cellular Phone:


Telephone: Cellular Phone:

300

State of New York Insurance Department FAX NO: (518) 474-5048

Application for Temporary Independent Adjuster’s Permit Under

Section 2108(N) of the Insurance Law

To the Superintendent of Insurance of the State of New York: The UNDERSIGNED ________________________________________, an insurer authorized to (Name of Insurer) transact insurance business in the State of New York, hereby applies for a temporary permit under Section 2108(n) of the Insurance Law for the following individual(s) and hereby certifies that:

2. The person(s) named in the application are appropriately qualified by training and experience.

1. The application for temporary permit(s) is in order to facilitate the settlement of claims under insurance contracts involving widespread property losses arising out of a conflagration or catastrophe common to all losses. The occurrence for which this application is submitted is:

_________ _____________________________________________ ____________________ Date Conflagration or Catastrophe Counties

TYPE OF LOSS NAME* ADDRESS D/O/B SOCIAL SECURITY NO. TO BE ADJUSTED

Under penalty of perjury I affirm that the information given in the foregoing application is true and hereby subscribe thereto.

Dated:

By: __________________________________________ (Signature and title of officer or managing agent executing certificate)

Type name and address of officer or managing agent who signed above. _____________________________________________ _____________________________________________

_____________________________________________ _______________________________ (Fax No.) _______________________________ (Telephone No.) *If more space is necessary, attach additional sheets with required information.

301

Disaster Loss Data

Adjusters In Area: Drafting Authority:

Other Considerations:

Catastrophe Loss # Date:

Company Name: Contact Name: Phone: County Name:

Claims Information: Commercial: Personal: Total Claims: Total Claims: Average Dollar Average Dollar Value Per Claim: Value Per Claim: Total Dollar Value Total Dollar Value Of All Claims: Of All Claims:

Dollar Limit:

Areas Hardest Hit:

302

Appendix 14: Guidelines for IDAT Reports

Sam Miller

May 15, 2000

Florida Insurance Council The deployment of the Insurance Disaster Assessment Teams (IDAT) following Hurricane Georges in the Florida Keys and West Florida in the fall of 1998 demonstrated that IDAT likely would be called on to issue two reports. Insurance Commissioner Bill Nelson and members of the media may be accompanying the team and will be seeking an immediate report with an estimate of damages. In addition, there is the more detailed report to be submitted later to the local emergency management director, the Insurance Liaison Team at the state Emergency Operations Center (EOC) and the Division of Emergency Management (DEM). IDAT should not make a public report following an assessment tour if it has not been accompanied by public officials and the media. Public release of its information will be coordinated by the Insurance Liaison Team at the state EOC in Tallahassee, Jim McCloy and Commissioner Nelson’s press office and Jim Loomis and the state DEM press office.

Public Damage Assessment Reports In the event that team members are called on to make a public assessment of catastrophic losses, they should follow the guidelines posted below: Damage Estimates Should be a Range of Losses IDAT’s estimate of total damages should not be precise and specific, but should be a range, $250 million to $500 million or $1 billion to $1.5 billion, for example. The goal here is to describe the character of the event, ether minimal losses, moderate, mid-range or catastrophic, while not attempting to be right down to the last dollar. The team should emphasize that it simply is unable at this point to release a specific damages estimate. It may be useful to compare the event to previous hurricanes when explaining the nature and character of the losses. “It definitely is not a Hurricane Andrew,” is a good comment if the losses are a couple of billion or less. If it is a storm that hit the Florida Keys and it appears that the losses in that area are a couple of hundred million or so, say, “the losses appear comparable to Hurricane Georges.” Moderate losses in the Panhandle might be “comparable to Hurricane Opal.” Reports on insured losses from previous storms are available from the Florida Insurance FACT Book in the public-media section of the Florida Insurance Council Internet home page (http://www.flains.org/newfic/mediapublic/). General Estimate of Wind Versus Flood, but no Precise Breakdown

Do not attempt to precisely estimate the percentage of damages resulting from flooding and the percentage resulting from wind. The team may be able to state that it saw substantial damages from storm surge in certain areas and delineate those areas, or it may conclude that storm surge damage was limited and the destruction was largely wind-driven.

303

http://www.flains.org/newfic/mediapublic/

Precise Estimates are Available from Other Sources

The Insurance Information Institute in New York will usually release a computer-generated damage estimate by Karen Clark of Applied Insurance Research in Boston, within a day or so of landfall. Property Claim Services releases its estimate, which is based on preliminary claims reports from the major insurers, within a week to 10 days. It may release the estimate earlier.

More specific estimates will be available, but they will be released through the Insurance Council and Department of Insurance when available. IDAT should defer to these reports for a precise estimate of losses.

Emphasize Geographic Descriptions of Damage Emphasize the geographic areas with major damage, if not trying to be precise about those damages. It is important and helpful information that there was only scattered damage along the coast from Panama City to Destin or that homes seemed to be severely damaged all along the area. Similarly helpful would be the comment that the damage seemed to be limited to a mile or two from the coast, or that severe damage could be observed miles inland. Report to Local and State Emergency Operations Centers IDAT members will huddle behind closed doors as soon as possible after their assessment tour and develop a report for the local and state EOCs and the insurance community. The guidelines above also apply, although team members may be more specific in this report if they are confident in doing so. IDAT May be More Detailed in This Report IDAT members should be as detailed as possible in describing where they saw major damage, identifying communities by name when possible. Also when possible, they should estimate the percentage of structures in a region that were demolished, the percentage with heavy damage and the percentage with moderate to light damage. IDAT also should attempt to assess where along the storm track there appeared to be storm surge activity. Individual insurers can take damage reports from a specific community or area, calculate them in light of their specific market share and develop a good idea of their needs for adjusters, other personnel and loss reserves. The storm surge information will be important to emergency managers as well as the insurance community in providing early indications of the likelihood of ALE assistance for storm victims.

304

Appendix 15: 2003 Members by Zone

Northeastern Zone Southeastern Zone

Alabama Mike Pickens

Massachusetts Georgia New Hampshire Louisiana

George Dale New York North Carolina

Rhode Island South Carolina John Crowley Vermont Tennessee

West Virginia

Sally McCarty, Secretary John Morrison, Secretary

Illinois Terri Vaughan Chuck Cohen Sandy Praeger John Garamendi

Michigan Glenn Wilson Artemio B. Ilagan Scott B. Lakin

Ohio Idaho Carroll Fisher Oklahoma Nevada

Eric Serna Jorge Gomez Wisconsin Texas

Ken Vines

3/18/03

Donna Lee Williams, Chair Delaware Janie A. Miller, Chair Kentucky Alessandro Iuppa, Vice-Chair Maine Tom Gallagher, Vice-Chair Florida Susan F. Cogswell, Secretary Connecticut Alfred W. Gross, Secretary Virginia Larry Mirel District of Columbia Walter Bell Steven B. Larsen Maryland Arkansas Julie Bowler John Oxendine Paula Rogers Robert Wooley Holly Bakke New Jersey Mississippi Gregory V. Serio Jim Long Diane Koken Pennsylvania Fermin Contreras Gomez Puerto Rico Joseph Torti, III Ernst Csiszar

Paula Flowers Vargrave A. Richards Virgin Islands

Jane L. Cline

Midwestern Western Zone

Jim Poolman, Chair North Dakota Mike Kreidler, Chair Washington Tim Wagner, Vice-Chair Nebraska Merwin Stewart, Vice-Chair Utah

Indiana Montana

Arnold Dutcher Elisara T. Togiai American Samoa Iowa Arizona Kansas California

Frank Fitzgerald Doug Dean Colorado Minnesota Guam Missouri J.P. Schmidt Hawaii

Ann Womer Benjamin Mary L. Hartung Alice Molasky-Arman

Wendell Malsam South Dakota New Mexico Joel Ario Oregon Jose Montemayor

Wyoming

305

306

Appendix 16: Disaster Response Plan Checklists

Task Description

Preparation Tasks

Section I. Before the Disaster

1. Executive/Policymaking Committee

By Date

Responsible Person(s)

1) Establish and appoint the Insurance Department Planning Subcommittee.

2) Establish and appoint the Combined Resources Subcommittee.

Ongoing

3) Oversee activities of the Insurance Department Planning Subcommittee.

Ongoing

4) Oversee activities of the Combined Resources Subcommittee.

5) Oversee the implementation and maintenance of the Disaster Response Plan.

Ongoing

By X date

Ongoing

307

Preparation Tasks Section I. Before the Disaster 1.1 Insurance Department Planning Subcommittee

Task Description By

Date Responsible

Person(s) 1) Establish and maintain an insurance community liaison

contact lists.

2) Establish and appoint an insurance disaster assessment team.

4) Establish and maintain exceptions to common settlement

practices.

5) Establish and maintain a mediation program.

3) Oversee the emergency licensing of adjusters.

6) Establish and maintain a market assistance plan. 7) Work with state and/or local office of emergency

management officials and insurance industry representatives, before the occurrence of a disaster, to identify individuals authorized for early access to impacted areas for claims adjusting purposes. (See Section 1.1g)

308

Preparation Tasks

Responsible

Person(s)

Section I. Before the Disaster 1.1a Insurance Community Liaisons

Task Description By Date

1) Establish procedures to ensure documentation and statistical reporting procedures pursuant to Section 24A of the Statistical Reporting Handbook (NAIC) (Appendix 7).

3) Compile contact information and claim processing information.

By X date annually

4) Compile exposure data.

5) Consider establishing a password-protected site on insurance department web site for authorized insurance department and insurance community liaison personnel to report claim-processing information.

8) Determine what information, if any, will be required to be reported upon activation of the insurance community liaisons.

2) Develop a list of insurance community liaisons. • Should be members of insurer’s disaster response team

who are familiar with company processes, systems and protocols and have access to key information.

• Should include primary and secondary contact person information.

By X date annually

• Insurance community liaisons will report other disaster information to be posted to insurance department’s web site including: Lists of company claim offices and phone numbers,

Company toll-free numbers, etc. Adjuster information,

6) Determine where insurance community liaison activity will occur (e.g., may have a permanent seat in state’s emergency operations center or insurance department’s command post).

7) Establish a trigger for activating the insurance community liaisons (e.g., when state emergency operations center is at Level 3 or higher, or when Commissioner/Director determines that activation will benefit the insurance department, industry and consumers).

309

Preparation Tasks

Task Description


By Date


9) Develop insurance community liaison disaster reporting form (See Sample in Appendix 13), which should, as much as possible, be uniform with other states’ forms. Such information should be reported by the insurance community liaisons and may include such detailed information as:

10) Contact all insurance community liaisons to ensure they have copies of the most current insurance community liaison disaster reporting form.

11) Ensure updates to all data.

• Number of claims received;

• Number of claims settled;

• Exposures by zip code; • Incurred losses to date;

• Number of insureds contacted;

• Available reinsurance, etc.

310

Preparation Tasks




Task Description By

Date 1) Coordinate with insurance industry to determine if a

mediation program is desired for post-disaster claim disputes.

2) Determine if additional statutory authority is needed in order to implement such a program. (Seek additional authority, if desired.)

3) Establish the mediation program and set protocol for when the program is activated and rules by which the program will operate (e.g., Oklahoma’s Ending Arguments Gently, Legally and Economically—E.A.G.L.E. program—Appendix 10). • Ensure that protocols include requirements for:

Proper training of mediators; Eligibility of claims for mediation (size/type, etc.); Where mediation takes place; Who pays costs, etc.

4) Establish:

• Evaluation standards for success of program; and • Monitoring mechanism for program;

• Protocols for when mediation program should be deactivated (e.g., some states may wish to keep mediation program in force continuously; others may wish to activate such plan after disasters).

311

Preparation Tasks Section I. Before the Disaster

Task Description By

Date



1) Determine which exceptions to common settlement practices may need to be established to accommodate a magnitude of claims in an efficient and compassionate manner, through communications with the insurance industry.

2) Develop triggers, in consultation with industry, as to when such practices will be implemented or amended. Document changes and ensure that they are fully communicated to the industry and consumers.

312


Task Description Responsible

Person(s)


By Date

2) Determine plans for establishing a market assistance plan, such as:

3) Determine trigger(s) for activating the market assistance plan (e.g., coverage is becoming unaffordable and/or unavailable; rate/form filing increases or coverage exclusions/restrictions; consumer complaints, etc.).

4) Pursue statutory and/or rulemaking authority to allow the insurance department to establish a market assistance plan if such enactments are necessary.

5) Determine protocols for monitoring market assistance plan activity, evaluating its success, and protocols for disassembling/deactivating the market assistance plan when no longer needed.

1) Research and discuss with insurance industry the need for market assistance plans if post-disaster marketplace disruptions dictate that one is necessary. (See Appendix 2 information for background on market assistance plans.)

• Whether it be a general property and casualty market assistance plan or specific to one line of coverage such as workers’ compensation, etc;

• Who should participate; • If/how the market assistance plan should be extended

to include non-admitted markets; • Who should administer the market assistance plan; • How the market assistance plan will be funded; • Whether coverage required will be identical or whether

similar products will be acceptable; • Resources needed to operate the market assistance

plan, etc.

313

Preparation Tasks Section I. Before the Disaster 1.1e Insurance Disaster Assessment Team



1) Work with insurance industry and disaster management community to develop uniform insurance disaster assessment team information for reporting (see Guidelines in Appendix 14).

2) Identify important information to assist the state in seeking a state or federal disaster declaration, and find information sources. (The information may be available through the uniform insurance disaster assessment team for reporting guidelines and the insurance community liaison disaster reporting form.)

3) Identify a method to quickly resolve disputes or concerns if they arise regarding a company’s early access to the disaster area(s).

4) Review insurance disaster assessment team membership, confirm availability of team members and update contact information.

Annually

314

Preparation Tasks Section I. Before the Disaster 1.1f Emergency Licensing of Adjusters

2) Initiate legislative/regulatory procedures to establish authority if state’s statutes/regulations do not provide for such.

5) Establish protocol for sharing the list of emergency adjusters with appropriate internal insurance department staff, Combined Resources Subcommittee, etc.

Task Description By

Date Responsible

Person(s) 1) Determine if state’s statutes/regulations permit

emergency licensing procedures for adjusters, and if so, for which type (i.e., company adjusters, independent adjusters, and/or public adjusters).

3) Establish guidelines for expedited licensing. 4) Distribute guidelines to interested parties on the

insurance department web site or informational bulletin site.

315




Person(s) 1) Create, test and maintain long-term formal, written

“public-private disaster partnerships” with appropriate organizations designed to coordinate response to disasters.

2) Create a list of key decision-makers for disaster management.

3) Update and maintain the list of key disaster management decision-makers and share that list widely within the disaster management community.

By Xdate annually

4) Call an initial meeting of members to:

By X date and ongoing

7) Establish and appoint a Coordination/Communications Task Group and oversee its activities.

8) Establish and appoint a Command Post Task Group and oversee its activities.

9) Establish and appoint a Consumer Information Hotline Task Group and oversee its activities.

10) Establish and appoint a Media Relations Task Group and oversee its activities.

11) Establish and appoint a Volunteer Recruiting and Training Task Group and oversee its activities.

12) Establish and appoint a Market Monitoring Task Group and oversee its activities.

13) Meet periodically to:

Bi-annually or as often as the Commissioner/Director deems necessary prior to the state’s disaster season (if applicable).

• Discuss the insurance department’s Disaster Response Plan;

• Explain duties of the Combined Resources Subcommittee and task groups;

• Receive input from members; and • Gather ideas from task group members, references,

educational/ informational materials, contact persons, disaster-related issues that may need to be added to this Disaster Response Plan, etc.

5) Coordinate with local, state, and federal emergency management agencies and the insurance industry to identify critical areas of mutual need before, during and after a disaster.

6) Establish and appoint a Logistics Task Group and oversee its activities.

• Discuss the progress of the task groups,

• Solve issues that arise, and add/delete items to the state’s specific Disaster Response Plan, etc.

316

Preparation Tasks Section I. Before the Disaster 1.2a Logistics Task Group

Task Description By

Date Responsible

Person(s) 1) Identify resource needs of the Combined Resources

Subcommittee and other task groups regarding the insurance department’s logistical and technical capabilities and requirements to enable the insurance department to respond better and faster to disasters and include these in the implementation plan.

3) Determine whether it is feasible to use the insurance department’s existing toll-free number for the consumer information hotline and whether/how to coordinate all the insurance department toll-free lines if additional lines are necessary.

4) Determine how to incorporate TDD lines if desired by the Consumer Information Hotline Task Group.

5) Determine how to quickly and efficiently link the insurance department satellite and/or temporary field office sites with the insurance department headquarters.

6) Establish method of requesting and securing resources from other states and organizations if needed.

7) Identify available physical and human resources, which may assist in disaster response efforts.

2) Coordinate technical requirements for an alternate designated facility to ensure its immediate activation in case the insurance department headquarters is damaged/destroyed in a disaster and include these in the implementation plan.

317

Preparation Tasks


By Date



Task Description 1) Hold discussions with local, state, and/or federal

emergency management agencies to identify critical individuals who can work with the insurance department to prepare for dealing with a disaster, including key contacts in disaster assistance agencies.

By X date annually

2) Obtain a list of NAIC zone disaster response coordinators and alternate zone disaster response coordinators, and ensure that each state within that zone maintains a list of volunteers that are willing to participate if a disaster occurs.

3) Determine which states have signed an Emergency Management Assistance Compact (EMAC) (Appendix 8).

• Research and determine protocols for sharing of insurance department personnel via EMAC for those EMAC states.

• Establish other procedures and guidelines for sharing of insurance department personnel with non-EMAC states.

318



By Date


Person(s) 1) Determine possible triggers for deciding if an insurance

department command post will be activated (the nature/extent of each disaster may change the previously established triggers).

2) Determine where the command post will be located if activated.

3) Determine what equipment the command post personnel will need (e.g., phones, workstations, faxes, computer hook-ups, etc.) and communicate this information to the Logistics Task Group.

4) Determine and arrange for an alternate site in case the insurance department headquarters are damaged/destroyed. (The command post may be located in another state or federal agency permanent or temporary office if more appropriate.)

5) Determine if/when the insurance department would need to activate satellite and/or temporary field office(s) and work with the Logistics Task Group to determine logistical/technical requirements.

6) Obtain a list of insurance community liaisons from the Insurance Department Planning Subcommittee to contact for activation (upon trigger being met for activating the insurance community liaisons).

7) Make available for distribution/publication written material explaining how to prepare claims. Prepare for it to be made available through the Internet and the command post and field office(s).

8) Establish procedures/protocol for deactivation of command posts.

319

Preparation Tasks Section I. Before the Disaster 1.2d Consumer Information Hotline Task Group

Task Description

By Date


1) Determine desired hotline physical location (recommend location in insurance department headquarters).

2) Establish protocol for determining when TDD lines are needed.

3) Link field offices and enable the hotline to be able to channel calls to/from field offices. (Cellular phones or web links should be used with field offices until those offices are made operational with wired phone links.) Seek assistance from the Logistics Task Group.

4) Determine alternate designated facility capable of immediate activation in case the insurance department central facility is damaged by the disaster.

5) Determine hardware necessary for the hotline (e.g., have phone lines transferred to temporary office space, if necessary).

6) Determine when to activate the hotline (e.g., when disaster is declared, when current toll-free lines are overloaded, etc.) and when to deactivate.

7) Determine whether or when to add additional lines, and if so how many (e.g., based on the number of calls received, length of queuing time, etc.).

8) Establish protocols for how the hotline will function, including shifts worked, hours of operation, and structure (e.g. appoint a team leader for each shift). These decisions should be determined locally and depend on current disaster need, but protocols should be established to help in aiding decision-making when activation occurs.

Note: The prior NAIC Disaster Response Plan

recommended 24-hour hotline activation with volunteers serving 4-6 hour shifts. Florida’s experience after Hurricane Andrew was that 8 a.m.—7 p.m. was sufficient (no value added for longer hours). Weekends may be optional, depending on need.

9) Determine whether to accept industry or community volunteers or multi-lingual hotline staff, if long-term duration seems necessary.

10) Create list of individuals who will be designated to staff the hotline, as well as coordinate with the Volunteer Recruitment and Training Task Group for additional volunteers if necessary.

11) Establish notification method for hotline staff such as: • Insurance department Intranet or Internet notice; • Automated voice mail dial-in notice; or • Phone tree.

320


Task Description

By Date


12) Coordinate with the Volunteer Recruiting and Training Task Group regarding a general information kit on:

13) Contact the Insurance Department Planning Subcommittee regarding the insurance community liaisons to compile and maintain a current list of:

14) Compile and maintain a list of phone numbers/contacts/web sites for non-insurance referrals. (See Appendix 1 for examples.)

15) Develop procedures to:

16) Determine whether the insurance department will accept other means of communications from consumers (fax, e-mail, and department web site) and establish logistics accordingly. Coordinate with the Logistics Task Group.

• Claims handling process; • FAQs about auto; homeowners, life insurance; • Commonly used policy forms (e.g., top 5 or 10

insurers and ISO’s forms); and • Coverage information related to state-specific perils

(e.g., hurricane, earthquake, etc.).

• Top 5 or 10 property and casualty insurers in the state;

• Their disaster coordinator/representative; • Their contact numbers, web site addresses.

• Publicize the hotline once activated; • Have local or regional emergency management

agency phone numbers to contact and advise of toll free insurance assistance number and web site address (update this list annually);

• Publicize in other ways (press releases, public service announcements, etc.). Work with Media Relations Task Group.

321

Preparation Tasks Section I. Before the Disaster 1.2e Media Relations Task Group

Task Description

By Date


1) Develop and maintain a list of all press/media outlets (both print and electronic, including newspapers and broadcast media).

2) Work with the Command Post Task Group and field office location personnel to ensure that each insurance department location has an individual specifically trained and prepared to answer questions at town meetings and other informational gatherings. These individuals would brief the press and then act to supplement information provided through the media and other sources on how to quickly and effectively prepare insurance claims information.

3) Produce and distribute brochures on disaster preparedness (in conjunction with such materials already produced by emergency management agencies, the insurance industry, etc.).

4) Establish procedures for the flow of information between the Combined Resources Subcommittee and all other task groups.

Update appropriate contact information (names, addresses, phone numbers, email addresses, web sites).

322




Person(s) Annually

or prior to any known “season—i.e., hurricane”

2) Update volunteer pool list and contact information. Annually 3) Interview volunteers:

1) Recruit, identify and confirm list of insurance department disaster response volunteers, including:

• Name; • Title; • Unit; • Home/work phone numbers; • Home/work address; • Home/work email address; • Area of expertise, etc.

• Availability status (i.e., who can be ready on a

moment’s notice versus those who may need to make arrangements to be away);

• Multi-lingual abilities; • Strengths and weaknesses; • Disaster training and/or prior experience; • Current insurance expertise; • Volunteer interests for disaster duty (e.g., field

duty and/or consumer hotline duty).

Command post staff;

Hotline staff, etc.

Counseling disaster survivors;

Listening skills;

Fraud identification training; Public speaking.

• When training should occur: Ongoing; Periodically repeated; Crash review course within 72 hours of

disaster.

5) Develop customized internal insurance department disaster training.

6) Identify existing training opportunities: • Emergency management agencies:

State; Federal.

• Insurance industry.

4) Establish training requirements, including: • Who should be trained:

Field staff;

• What training should be received:

Conflict resolution;

Insurance related;

Local;

323

By Date Responsible

Person(s) 7) Coordinate with the Consumer Information Hotline Task

Group regarding a general information kit on: • The claims handling process;

Provide written materials to the Command Post Task Group for distribution/publication.

• Frequently-asked-questions about auto, homeowners, life insurance;

• Commonly used policy forms (e.g., top 5 or 10 insurers and ISO’s forms);

• Coverage information related to state-specific perils (e.g., hurricane, earthquake, etc.);

By X date annually, preferably prior to state’s “disaster” season

8) Recruit, identify and confirm the list of insurance department consumer hotline volunteers, including: • Name; • Title;

• Home/work phone numbers;

• Home/work email address;

Update regularly.

9) Determine whether insurance department would accept industry or community volunteers for hotline and, if so, set protocols for activating such volunteers (e.g., if disaster is long-term, if multi-lingual volunteers are needed, qualified person retired from insurance department, etc.).

Task Description

• Command post and/or field office contact information.

• Home/work address;

• Area of expertise.

• Unit;

324

Preparation Tasks Section I. Before the Disaster 1.2g Market Monitoring Task Group

Task Description

By Date

1) Coordinate with Volunteer Recruiting and Training Task Group to develop seminar/course regarding the identification of potential market conduct, solvency issues, or fraud.

2) Report to the Executive/Policymaking Committee regarding marketplace availability and affordability issues for deciding when the market assistance plans may be activated.


325

Activation Tasks

Section II. Immediately Before, During and Immediately After the Disaster

2. Executive/Policymaking Committee


Person(s) 1) Establish a schedule and hold regular briefings with

appropriate representatives from the Insurance Department Planning Subcommittee, the Combined Resources Subcommittee and all task groups.

2) Oversee and receive reports form the various task groups designated to implement assigned disaster-related activation duties and work with task groups to resolve any concerns/issues that arise.

3) Give directive to activate documentation and statistical reporting procedures pursuant to Section 24A of the Statistical Handbook of Data Available to Regulators (NAIC). (Appendix 7)

4) Evaluate trigger activations.

Ongoing through-out disaster

326

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2.1 Insurance Department Planning Subcommittee

Task Description

By Date


1) Communicate regularly with the Executive/Policymaking Committee.

2) Monitor the activation and status of the insurance community liaisons, the insurance disaster assessment team, the emergency licensing of adjusters, the exceptions to common settlement practices, mediation program, and the issuance of State Emergency Response Team (SERT) badges (if applicable).

327

Activation Tasks



By Date


Person(s) 1) Evaluate the most recent exposure data to identify

companies whose customer base is greatest and is considered to be at high risk in impacted areas.

Immediate

2) Activate insurance community liaisons of affected insurance companies and notify primary or secondary contact persons (e.g., via teleconference).

3) Solicit and evaluate coverage data and loss statistics on an ongoing basis. Compile data from the insurance community liaison disaster reporting form.

4) Distribute aggregate industry data to appropriate parties. Compile data from the insurance community liaison disaster reporting form.

328

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2.1b Mediation Program

Task Description

By Date


1) Monitor claims payment/settlement information to determine the need to activate a Mediation program (from the insurance community liaison disaster reporting form).

2) Monitor consumer complaints to determine the need to activate a mediation program.

329

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster


Task Description By

Date Responsible

Person(s) 1) Initiate and authorize notification to insurers of

exceptions to common settlement practices as dictated by the disaster.

2) Work with industry to resolve problems/issues, or agree on new exceptions as the need arises.

330

Activation Tasks

Section II. Immediately Before, During and Immediately After the Disaster 2.1d Market Assistance Plans

Task Description

By Date


1) Solicit and evaluate information from appropriate task groups regarding the need to activate the state’s market assistance plan.

331

Activation Tasks

Section II. Immediately Before, During and Immediately After the Disaster 2.1e Insurance Disaster Assessment Team



1) Tour the affected area(s) as soon as possible to evaluate the damage and provide initial estimates, as well as estimates of the number of adjusters needed.

2) Work with insurance industry and local/state/federal agencies to resolve any concerns/issues that arise.

Ongoing through-out disaster

332

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2.1f. Emergency Licensing of Adjusters

Task Description

By Date


1) Authorize the activation of procedures for emergency licensing of adjusters if needed. (When triggers are met and a decision has been made to activate this process.)

2) Update/authorize the list of emergency licensed adjusters and distribute to designated insurance department staff.

333

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2.1g. Early Access for Adjusters

By Date Task Description


1) Notify insurers that adjusters with the State Emergency Response Team (SERT) badges may enter the disaster area(s) and remind industry what identification will be needed to enter affected area(s) on an early basis (as soon as the insurance department is notified by an emergency management agency that SERT adjusters may be activated and assuming that SERT badges have been issued to adjusters.)

334

Activation Tasks

Task Description



By Date


1) Communicate with task groups and report to the Executive/Policymaking Committee.

335

Activation Tasks





1) Implement all necessary technical requirements requested by other task groups.

2) Respond to and resolve logistical and technical issues that arise with Disaster Response Plan activation duties (as needed).

3) Activate all implementation plans as dictated by magnitude of the disaster.

4) Document implementation issues for future reference and planning.

5) Report to the Combined Resources Subcommittee. As necessary

336

Activation Tasks

Task Description

Section II. Immediately Before, During and Immediately After the Disaster 2.2b Coordination/Communications Task Group

By Date


1) Activate all communications with designated representatives.

2) Contact NAIC zone disaster response coordinators and alternate zone disaster response coordinators to coordinate needs, information, etc.

3) Identify and report known resource needs which may be addressed by other organizations.

4) Solicit and review information regarding any requests for or offers of assistance from other states. Observe Emergency Management Agency Compact (EMAC) process, if requesting/offering states are EMAC members, or work with the state directly.

5) Report regularly to the Combined Resources Subcommittee.

337

Activation Tasks

Section II. Immediately Before, During and Immediately After the Disaster 2.2c Command Post Task Group


Person(s) 1) Determine whether the disaster dictates activating

the command post and if so, designate location, staffing, etc., using previously accepted triggers to guide decision-making.

Disaster declared

2) Establish the necessary number and locations of temporary disaster field offices, following the occurrence of a disaster (may be in an existing state or federal office). Notify Logistics Task Group to set up command post, logistics and technical requirements.

3) Coordinate the placement of insurance department staff and insurer representatives in the affected areas as soon as possible.

4) Cooperate with the appropriate federal and state agencies and the insurance industry concerning early damage assessment and granting insurance professionals the earliest possible access to the disaster site.

5) Receive feedback on location and scope of the disaster from appropriate sources in the field.

6) Determine whether insurance community liaisons and/or other industry representatives should be present in the command post and if so, notify primary and/or secondary contacts.

7) Determine the number of insurance department personnel needed to staff the command post and any insurance department satellite and/or temporary field offices and request accordingly.

8) Continue to assess the scope of the disaster and provide resources necessary to implement and carry out the Disaster Response Plan.

Ongoing during the disaster

9) Communicate useful information to local, state and/or federal emergency management personnel and consumers in affected area(s) via insurance department satellite and/or temporary field offices or by other means.

10) Receive status reports from insurance department satellite and/or temporary field offices and monitor their activities.

Daily

11) Report to the Combined Resources Subcommittee. As needed

338

Activation Tasks



Person(s)


By Date

1) Staff and activate the hotline at an appropriate location as directed by the Executive/Policymaking Committee or Combined Resources Subcommittee.

Immediate

2) Request activation of other communication options (if needed).

3) At the direction of the Combined Resources Subcommittee, set hotline hours of operation.

4) Notify hotline volunteers of duties and shifts. 5) Distribute hotline kit materials from the Voluntary

Recruiting and Training Task Group to staff/volunteers.

6) Provide regular reports to the Combined Resources Subcommittee regarding the need for additional lines.

7) Notify the Combined Resources Subcommittee of the need for additional volunteers or volunteers with multilingual skills.

8) Monitor and track the types and nature of disaster-related calls and provide information to command post for appropriate dissemination.

9) Coordinate with the Volunteer Recruiting and Training Task Group to ensure that volunteers receive a refresher course prior to hotline activation and on an ongoing basis as warranted.

339

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 2.2e Media Relations Task Group

Task Description

By Date


1) Provide guidance or qualified speakers to address issues raised at town meetings.

2) Distribute press releases, public service announcements, and other advisory information to units of the government throughout the disaster area so they may reproduce them for local residents if desired. (Contact the NAIC for assistance in bulk reproduction, if necessary.)

3) Work with the Consumer Information Hotline Task Group to publicize the hotline.

4) Maintain constant communication with the command post and insurance department satellite and/or temporary field office(s) to coordinate information flow so that information supplied to media is consistent, accurate, and timely.

5) Provide any media needs throughout the disaster.

340

Activation Tasks




Task Description By Date 1) Determine from the Executive/Policymaking

Committee and/or Consumer Information Hotline Task Group whether the volunteer pool should be activated, and for which volunteers (i.e., command post, field duties, hotline duties, or all).

2) Discuss insurance department volunteer status with appropriate managers to ensure that internal staffing needs are still being met if volunteers participate in disaster activities.

3) Determine from Combined Resources Subcommittee whether industry and/or community volunteers are needed.

4) Notify activated volunteers according to previously established notification protocol.

5) Assure that volunteer kits contain all necessary supplies.

6) Work with the Logistics Task Group to ensure that volunteers have all the logistical/technical equipment necessary and that all equipment is in working order (e.g., cell phones, laptops, pagers, etc.).

7) Provide volunteers with refresher courses, if necessary.

8) Monitor volunteer activity and provide additional training, volunteer replacements, etc., as needed.

9) Report volunteer pool information and status to the command post.

Daily or as necessary

10) Collect information from field staff and report to:

• Executive/Policymaking Committee, • Combined Resources Subcommittee, • Volunteer groups going to the field.

341




Person(s) 1) Participate in meetings held by the Command Post

Task Group, Consumer Information Hotline Task Group and others to solicit feedback regarding potential market response issues.

Ongoing

2) Document findings and initiate appropriate research or investigation as appropriate (see insurance fraud indicators listed in Section 1.2g).

3) Recommend action to the Executive/Policymaking Committee, insurance department insurer solvency unit, or legal unit.

As necessary

342

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3. Executive/Policymaking Committee

Task Description

By Date


1) Coordinate debriefing meetings with key industry representatives.

2) Conduct debriefing of all Executive/Policymaking Committee members, Insurance Department Planning Subcommittee and Combined Resources Subcommittee members to document suggestions for improvement to the Disaster Response Plan.

3) Ensure that documentation and statistical reporting procedures are completed pursuant to Section 24A of the Statistical Handbook of Data Available to Regulators (NAIC) (Appendix 7).

4) Participate in any legislative or rule-making process that develops from the disaster event.


343

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1 Insurance Department Planning Subcommittee

By Date Task Description


1) Attend debriefing with the Executive/Policymaking Committee.

2) Evaluate success of the insurance community liaisons, the insurance disaster assessment team, the emergency licensing of adjusters, the exceptions to common settlement practices, and the mediation program, and formulate any needed plan improvements.

3) Compile and summarize reports, documents and statistics submitted by the insurance community.

4) Coordinate the distribution of data to the public in conjunction with state confidentiality law.

344

Activation Tasks

Section II. Immediately Before, During and Immediately After the Disaster 3.1a Insurance Community Liaisons

Task Description

By Date


1) Solicit input regarding the success of the insurance department in activating and communicating with the insurance community liaisons during the disaster.

2) Review comments and update procedures as needed.

345

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1b Mediation Program

By Date


Person(s)

2) Publicize program so that consumers are aware of its existence.

4) Evaluate program success and need for continuance.


1) Activate program and notify insurance industry that activation has occurred.

3) Monitor program activity.

346

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1c Exceptions to Common Settlement Practices

Task Description

By Date


1) Hold debriefing meetings regarding exceptions to practices to evaluate success.


347

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1d Market Assistance Plans

Task Description

By Date


1) Determine whether market assistance plans should be activated and determine scope.

Recommendation: A market assistance plan may be

considered if a disaster disrupts the operations of the state’s normal voluntary insurance markets to a significant extent. Information that might lead insurance regulators to conclude that market assistance plans should be established would include a significant increase in the number of complaints about the availability of insurance coverage being sought by consumers or businesses.

2) Submit market assistance plan proposals to the Commissioner/Director for approval and implementation (by rule or other procedure if necessary).

3) Monitor the market assistance plan’s activity. 4) Evaluate the market assistance plan’s success.

5) Deactivate the market assistance plan as determined by pre-established protocols.


348

Activation Tasks



Task Description

By Date


1) Debrief team members and volunteer pool participants and provide recommendations for improvement to the Insurance Department Planning Subcommittee.

2) Conduct formal debriefing with the Insurance Department Planning Subcommittee.

3) Evaluate insurance disaster assessment team procedures.

349

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1f Emergency Licensing of Adjusters

Task Description

By Date


1) Evaluate execution of the emergency licensing procedures.


350

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.1g Early Access for Adjusters

Task Description

By Date



1) Evaluate execution of State Emergency Response Team (SERT) badges (if applicable).

351



Task Description By

Date Responsible

Person(s) 1) Conduct a formal debriefing following any disaster

where the Combined Resources Subcommittee action plans are activated. This may be in addition to or in lieu of a bi-annual meeting (or other scheduled meeting).

4) Recommend appropriate amendments to the Disaster Response Plan.


2) Receive reports from the task groups as to status, ongoing needs and concerns, and suggestions for future improvement to the Disaster Response Plan.

3) Host a fact-finding meeting to assess the effectiveness of advanced preparations.

352

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.2a Logistics Task Group

Task Description

By Date


1) Debrief task group members and working staff. 2) Provide recommendations for improvement to the

Combined Resources Subcommittee.

3) Verify inventory and condition of information technology resources.

4) Provide damage assessment or loss reports to the Combined Resources Subcommittee.

5) Deactivate any temporary systems as conditions dictate. 6) Review and update procedures.

353

Activation Tasks


Task Description


By Date


1) Conduct a formal debriefing to document outstanding and/or closed issues.


354

Activation Tasks

By

Date




Person(s) 1) Deactivate the command post and satellite/temporary

field office(s) as determined by pre-established protocols.

2) Notify all appropriate parties of deactivation when pre-established triggers are met, or when the Commissioner/Director determines what is no longer necessary.

3) Conduct debriefing of all command post participants, satellite and/or temporary field staff personnel, and provide recommendations for improvement to the Combined Resources Subcommittee.


355

Activation Tasks




Task Description By

Date 1) Deactivate the hotline when pre-established protocols

are met or the Commissioner/Director determines it is no longer necessary.

2) Coordinate with the Media Relations Task Group to publicize deactivation of the hotline.

3) Debrief task group members and volunteer pool participants.



356

Activation Tasks

Task Description By

Date

Section II. Immediately Before, During and Immediately After the Disaster 3.2e Media Relations Task Group



3) Publish statistics as directed by the Executive/Policymaking Committee.


1) Conduct debriefing of the task group, media contacts and others affected by the task group’s activities.

357

Activation Tasks Section II. Immediately Before, During and Immediately After the Disaster 3.2f Volunteer Recruiting and Training Task Group

Task Description

By Date


1) Debrief the task group members and volunteer pool participants and provide recommendations for improvement to the Combined Resources Subcommittee.

2) Update the volunteer kits according to debriefing recommendations.


358


Task Description


By Date


1) Conduct or participate in debriefing meetings of appropriate task groups to further document market response issues.

2) Document findings and recommend action to the Executive/Policymaking Committee, insurer solvency unit or legal unit, as warranted.


359

DRP - P P - 0 3 ISBN# 0-89382-931-5 4/22/2003

Documents

Disaster Response Plan · Appendix 16: Disaster Response Plan Checklists.....307 ii. Introduction This handbook is intended to serve as a guide for insurance regulators to develop