The two articles belowwere in the Journal Inquirer on 01/10/2019.  CFSIC will go-live withtheir application acceptances online at 9 AM this morning.  

Concrete claims process begins Thursday

The captive insurance company tasked with distributing funds tohomeowners with crumbling foundations will begin accepting applicationsThursday at 9 a.m., the company’s superintendent said this week. The application process is detailed on the company’s website www.crumblingfoundations.org specifically in the section “For Homeowners.” There are two ways to apply: entirely online or by printing out aversion of the application that can be completed and then mailed electronicallyor through traditional mail.
Superintendent of the Connecticut Foundation Solutions IndemnityCo. Michael Maglaras said he is expecting a strong response and has urgedaffected homeowners to file online because each application will betime-stamped and claims will be completed first come, first served.“We are encouraging homeowners to file electronically,” he said.“It’s the fastest way to register your claim and receive an electronic claimacknowledgement and, most importantly, a claim number, which identifies who youare. It is by far the fastest and most efficient way to request a review ofyour claim.”

The captive insurance company’s president, Steven R. Werbner, isoptimistic that the launch will be a smooth one, but said he also expecting“some bumps in the road” considering there likely will be a large number ofapplications coming in at once. “We ask for your patience and understanding,” he said. “The firstfew days after launch will be challenging, but we are all committed toreceiving applications, logging them in, assigning claim numbers, and beginningthe process of bringing affected relief to homeowners.”

On Thursday, the sample applications on the website will bereplaced by actual applications, and there will be a video guiding homeownersthrough the application process for both foundation replacement funds andreimbursements for those who already have had the work done, Maglaras said. He recommended that applicants familiarize themselves with theapplication before Thursday, and have their requisite documentation at theready.  Maglaras also is advising homeowners not to include informationother than what is required.  “We are planning a smooth and orderly launch, but we need yourhelp,” he said. “I want to repeat what Steve Werbner said. … There will bebumps in the road. No launch of anything is ever prefect, and we don’t expectthis one to be perfect either. We have no idea what to expect on Jan. 10because we simply have no idea how many of you are out there and will beapplying. No one does.” “It’s been a long journey, and of course the journey isn’t over,”Werbner said.

Insurers offer concreteaid 
The Hartford, Liberty Mutual providing $10.5M in foundationassistance


  • Jan     9, 2019 

  • Twonew insurance companies are volunteering millions of dollars to assisthomeowners with fixing their crumbling concrete foundations, but in acceptingtheir offers, the state is prevented from filing related claims against thecompanies. Gov.Dannel P. Malloy and Attorney General George Jespen announced the two separatememorandums of understanding Tuesday with The Hartford and Liberty Mutual Insurance.The companies join Travelers Cos. Inc., which entered into a similar agreementlast month to assist people with paying for repairs.
  • Underall three agreements, the state has released the insurance companies and all oftheir past, present, and future employees from any and all claims that thestate has or may have pertaining to coverage of pyrrhotite-relateddeterioration of concrete foundations. Theagreements also require the state to release the companies from any and allfuture claims related to the companies’ issuance of policy forms, adjustments,or denials of property insurance claims or coverage of pyrrhotite-relateddeterioration. Under the agreements, the state releases the companies fromliabilities regardless of whether their customers participate in the programs.
  • Aspokesman for Malloy’s office declined to comment and referred all questions toJepsen’s office, which negotiated the agreement, the spokesman said. Jepsenasserted the financial contributions from the insurance companies far outweighany potential funds that would otherwise go to homeowners. “Wethink the tangible assistance resources procured through these deals clearlyjustify releasing any legal claims the state may have against these insurancecompanies,” Jepsen said. “We have been consistent and straightforward in ourview that litigation by the state will not produce resources sufficient toaddress this problem. Holding out hope of litigation recoveries — and therebyforegoing programs that can offer real help, like the ones announced today —would be irresponsible.”
  • Henoted that a joint state investigation determined that state consumerprotection claims are not available because the use of pyrrhotite inconstruction materials is unregulated. “Whileprivate lawsuits have been filed against insurers, none has yielded litigationvictories,” Jepsen said. “That said, our releases do not prevent any homeownersfrom asserting any claims against any party should they think doing so is intheir interests.”
  • Underits agreement, The Hartford will establish and administer The Hartford BenefitProgram and commit $3.5 million to the repair program. Connecticuthomeowners who are current or past policyholders of the company, have adeteriorating foundation that contains pyrrhotite, and are participating in theassistance program through the state-funded captive Connecticut FoundationsSolutions Indemnity Co. will be eligible for assistance. Underits agreement, Liberty Mutual will establish and administer the Liberty BenefitProgram and commit $7 million to homeowners who meet the same qualifications.
    Themaximum per-home benefit that the programs will pay is $25,000 for currentclients and $10,000 for past customers.
  • Homeownerparticipation in these programs is voluntary, but participation in the captiveprogram is required in order to access the funds provided by the insurancecompanies. Malloypraised the companies and Insurance Commissioner Katharine L. Wade for theircommitment. Theagreements, he said, “represent significant progress for affected homeowners.”
  • Likewise,Jepsen lauded the companies for providing funds that will help bridge the gapbetween the money provided by the state fund and the remaining cost. Thestate fund will provide up to $175,000 to affected homeowners, but the cost ofrepairing a home could exceed $250,000 depending on the size of the structureand the extent of deterioration. “Thisis an important commitment made by these two companies today, and I’m hopefulthat additional insurers will join them to help address this potentially catastrophicsituation,” he said. TheHartford spokeswoman Michelle Loxton said that providing the funding “is theright thing for The Hartford to do for our customers and communities.” “Whilemost homeowners policies do not cover these damages, we recognize the highlyunusual nature of this issue and the impact it is having on families ofConnecticut,” she said.
  • Insurancecompanies have routinely changed the language in their policies to specificallyexclude foundation coverage. The issue is the subject of three state SupremeCourt lawsuits that could place more of a responsibility on insurance companiesto pay claims to homeowners with crumbling foundations. Insurancecompanies argue that the language changes were an attempt to clarify theirinitial intent of what should be covered. “Wecontinue to empathize with our customers who have been impacted by crumblingfoundations due to defective concrete,” Jim MacPhee, president and chiefoperating office of Liberty Mutual Global Retail Markets, said. “This has beena particularly complex issue and we applaud the state for establishing a fundto assist Connecticut homeowners in this unfortunate situation when the policydoes not provide coverage. We believe it’s the right thing forus to provide additional assistance to our customers.”
  • Departmentof Consumer Protection Commissioner Michelle H. Seagull noted that there is nosingle solution to the issue that may affect thousands of homes and businesses,and the state is pleased whenever more resources become available. “TheHartford applauds the ongoing efforts of the state to address the crumblingfoundation crisis,” Loxton said. “We will continue to advocate for a holisticand comprehensive solution to this crisis that appropriately involves both federaland state resources.” MichaelMaglaras, who heads the state insurance fund, welcomed the additional funding,saying it would help to “greatly expand” assistance for homeowners.