New York lawmakers are urging the state’s Department of Financial Services (DFS) to investigate allegations that insurance companies are ignoring claims related to the Child Victims Act (CVA).

Assemblywoman Linda B. Rosenthal and Senator Brad Hoylman Segal have formally asked the Department of Financial Services to address concerns that child sexual abuse survivors are being denied compensation by insurance companies.

In a letter to Adrienne Harris, superintendent of the Department of Children’s Services, the two cited ongoing complaints from abuse survivors who claim insurance companies have failed to process their claims.

Separately, I note that despite complaints to the Financial Services Department for several months, the agency has yet to take any meaningful action.

“As the authors of the Child Victims Act of 2019, we write about the disturbing reports we have received from survivors who say their claims are not being properly processed by insurance companies regulated by the New York State Department of Financial Services,” Rosenthal and Hoylman-Segal wrote.

“It has come to our attention that some insurance companies may not be complying with the guidance issued by the DFS in Insurance Circular No. 11 dated 12 September 2019, and therefore the law set out in the CVA Act.

“We ask your office to investigate this matter and let us know how DFS plans to ensure that insurance companies comply with the law and do so expeditiously.”

The Voluntary Compensation Act was designed to give survivors of childhood sexual abuse the opportunity to file compensation claims, even for incidents that occurred decades ago. Yet five years after its passage, thousands of survivors are still waiting for insurance companies to honor their claims.

Some insurers, including Chubb, have been accused of ignoring FSA guidelines for compliance with the Voluntary Compensation Act. Interstate has also been cited as among those holding back compensation.

“At this point, silence is complicity,” said Steven Jimenez, a survivor and victims’ rights advocate. “Superintendent Harris’ failure to enforce her department’s guidelines allows insurance companies like Chubb to profit from the pain and suffering of survivors who were sexually abused as children.”

“The insurance industry is fighting to buy time and protect its profits, because every survivor who dies waiting for justice means one less claim they have to pay.”

Jimenez also expressed appreciation for the continued support from lawmakers Rosenthal and Hoylman-Segal who continue to pressure the Department of Financial Services to take action.

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