Urges U.S. Department of Justice to investigate certain claims handling practices related to Superstorm Sandy flood insurance claims.

SCR94

SENATE CONCURRENT RESOLUTION No. 94

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Senator� JAMES W. HOLZAPFEL

District 10 (Monmouth and Ocean)

SYNOPSIS

���� Urges U.S. Department of Justice to investigate
certain claims handling practices related to Superstorm Sandy flood insurance
claims.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution

respectfully
urging the United States Department of Justice to investigate insurance company
claims handling practices related to Superstorm Sandy flood insurance claims.�

Whereas,

Thousands of homeowners affected by Superstorm Sandy properly paid for flood
insurance to cover their home in the event of flooding, but reports of delays
and improper claims handling practices by property insurers have been
increasing; and

Whereas,

Insurance companies have a fiduciary duty to their insureds to act in the
insureds best interest and to conduct claims handling in good faith, principles
that are the basis for a fair and just system of insurance to compensate
victims of property damage; and

Whereas,

The Federal Emergency Management Agency works through private insurance
companies to sell and administer flood insurance through the National Flood
Insurance Program, into which thousands of victims of Superstorm Sandy have
paid premiums, and on which these homeowners are now relying to cover their
losses from the devastating storm; and

Whereas,

A 2014 court case in the United States District Court for the Eastern District
of New York,
Raimey v. Wright National Flood Insurance Co.
, has
revealed, in great detail, allegations that insurance companies handling
Superstorm Sandy flood insurance claims, in potentially hundreds of cases,
committed reprehensible practices including secretly rewriting engineering
reports to change the reports� conclusions to avoid covering the loss, leaving
insured homeowners to suffer the loss; and

Whereas,

While this court case may be in New York, similar reports have arisen in New
Jersey of insurance companies changing findings to deny coverage under flood
insurance policies, and further investigation is necessary to obtain
engineering reports, including any drafts of engineering reports, to determine
how widespread this practice is amongst insurers administering the National
Flood Insurance Program; and

Whereas,

If proven to be true, claims handling practices such as those described may
constitute fraud, and therefore, the United States Department of Justice should
investigate this matter further to determine if any laws may have been violated
and to hold insurance companies accountable; now, therefore,

����
Be It
Resolved
by the Senate of the State of New
Jersey (the General Assembly concurring):

���� 1.��� The Legislature
respectfully urges the United States Department of Justice to investigate the
claims handling practices of insurance companies handling flood insurance
claims to determine if engineering reports or other investigatory activities
were manipulated to fraudulently deny coverage to Superstorm Sandy victims, and
if laws have been violated, hold those insurers accountable.

���� 2.��� Copies of this
resolution, as filed with the Secretary of State, shall be transmitted by the
Secretary of the Senate to the Attorney General of the United
States.

STATEMENT

���� A recent court case in New
York, and similar reports in New Jersey, have revealed in great detail,
allegations that insurance companies handling Superstorm Sandy flood insurance
claims, in potentially hundreds of cases, committed reprehensible practices including
secretly rewriting engineering reports to change the reports� conclusions to
avoid covering the loss, leaving insured homeowners to suffer the loss.

���� This resolution urges the
United States Department of Justice to investigate the claims handling
practices of insurance companies handling flood insurance claims to determine
if engineering reports or other investigatory activities were manipulated to fraudulently
deny coverage to Superstorm Sandy victims, and if laws have been violated, to
hold those insurers accountable.