Florida is the first state to implement a program that officials say will improve services and save money in the administration of insurance company receiverships, according to the state’s Chief Financial Officer Alex Sink.
The Department of Financial Services, Division of Rehabilitation and Liquidation, recently used ClaimNet, a Web-based application that makes it easier for claimants in a receivership to submit a claim, update a claim or check on the status of an existing claim.
The National Association of Insurance Commissioners launched ClaimNet in December 2006 to provide a uniform method for collecting and processing a receivership’s claims data. Florida recently used the program for a receivership with more than 1,400 policies, and nearly half of the claimants used the program to submit their claims on line, saving money and time, Sink said.
“Processing claims is one of the largest and costliest tasks associated with a receivership or liquidation, which can be a financial and emotional burden for consumers,” Sink said. “With this program, we have improved the process and will have more funds to pay claims.”
DFS serves as receiver of any insurance company placed into receivership in Florida. The Division of Rehabilitation and Liquidation is responsible for performing the duties of the Department of Financial Services in the department’s capacity as receiver. The basic responsibilities of the receiver include the collection of assets or debts due to the company and the evaluation of all known claims against the company.
Source: Florida Department of Financial Services
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