OAI: Mo. Auto Insurance Cos. Will See Less Red Tape for Mobile Claims Centers

RANCHO CUCAMONGA, CA, September 13, 2011 (Press-News.org) Missourians could have an easier time filing damage claims on their inexpensive auto insurance and other policies the next time a natural disaster strikes that state.

That's because a new state law prohibits towns and cities from forcing coverage providers to obtain business licenses before they can set up emergency claim-processing centers to serve customers in storm-damaged areas.

State officials say that type of bureaucratic holdup happened on multiple occasions this year in Missouri, where residents struggled with several tornadoes, including one in the city of Joplin that killed more than 100 people and inflicted hundreds of millions of dollars in damages to homes, vehicles and other property.

"Thanks to this law, Missouri insurance companies will be able to move quickly and serve customers in their time of need," John M. Huff, who directs the state Department of Insurance, said in a news release.

A number of major insurers--including Allstate, Farmers, GEICO and Liberty Mutual--sent mobile claims units to the Joplin area in the wake of the May disaster.

Missouri law requires coverage providers to deal promptly and fairly with claims filed by their policyholders.

Source: http://insurance.mo.gov/Contribute%20Documents/UnderstandingAutoClaim.pdf

The legislation could make it easier for providers to do that because it forbids cities, towns and other "political subdivisions" from requiring companies to get permits, business licenses or other regulatory approvals before sending a mobile claims facility in to work with storm victims.

At least 139 people were killed and more than 2,000 structures were damaged when the tornado blew through Joplin at speeds of more than 200 mph, according to the Insurance Information Institute (III). The Joplin tornado was the most destructive in more than 60 years, according to federal officials, and Huff has said he expects losses to reach as high as $2 billion.

Missouri residents have gotten nearly $750 million from claims filed in the wake of the May tornado, according to state regulators. Nearly 17,000 claims were filed across all coverage types. The largest number is for homeowner policies, with about 7,600 claims, followed by more than 6,600 auto coverage claims.

To read more about this and other coverage issues, go to http://www.onlineautoinsurance.com/affordable/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.