STATE OF NEW YORK
ONE COMMERCE PLAZA
ALBANY, NEW YORK 12257
NOTE: WITHDRAWN EFFECTIVE 03/31/2009
Circular Letter No. 2 (2008)
February 4, 2008
All accident and health insurers, Article 43 corporations; employee welfare funds; licensed Public Health Law Article 44 health maintenance organizations and integrated delivery systems, municipal cooperative health benefit plans.
|RE:||Disaster Planning, Preparedness and Response|
STATUTORY REFERENCE: Sections 301, 305, 308, 1109, and Articles 44, and 47, of the New York Insurance Law
This circular letter replaces and repeals Circular Letter No. 6 (2007). Disaster planning, preparedness, and response for life insurers and property/casualty insurance industries are covered by separate circular letters.
|A||Organization of this Circular Letter||1|
|B||The New York State Insurance Disaster Coalition and Insurance Emergency Operations Center (IEOC)||2|
|C||Before a Disaster Strikes||3|
|C1||Disaster Response Plan and Questionnaire||3|
|C2||Business Continuity Plan Questionnaire||4|
|D||Operations During a Disaster||5|
|D1||Insurance Company Disaster Liaisons||5|
|D2||Liaison Duties and Responsibilities||6|
|E||After a Disaster||6|
|Post Disaster Coverage Data and Loss Statistics||6|
Please note that the Insurance Department has developed an interactive, secure, on-line data collection and validation mechanism utilizing eForm/s and eQuestionnaire/s. Accordingly, it will soon be possible to submit or attach files such as the Disaster Response Plans to the Department via the Insurance Department Portal Application. The Insurance Department Portal Application will be available in March 2008. Instructions for the electronic submission of all documents will be posted to the Insurance Department website in March 2008.
Questions concerning any aspect of this circular letter should be directed to Senior Insurance Examiner Ashbert Carrington of the Disaster Preparedness and Response Bureau, by phone at (212) 480-5340, by e-mail to email@example.com, or by mail to State of New York Insurance Department, Disaster Preparedness and Response Bureau, 25 Beaver Street, New York, NY 10004.
When an emergency or disaster situation occurs, the Insurance Department provides the Governor and the State Emergency Management Office (SEMO) with critical information regarding the amount and extent of property losses, as well as other damage assessments. Based on this information, the Governor determines whether and when to request a federal disaster declaration, and how to prioritize the deployment of state assets.
The insurance community, including the property, life and health sectors, has been identified as a key resource in providing early assessments of damages arising from natural or man-made disasters. Insurers play an important role in quantifying the magnitude of losses - insured and uninsured - and in determining both the degree and duration of insurer response to losses. Accordingly, all entities to which this circular letter is directed are expected to assist the Insurance Department in obtaining necessary information before, during, and after disasters strike.
An integral part of the Insurance Disaster Coalition response to any disaster is the Insurance Emergency Operations Center (IEOC), which will be staffed by selected insurance industry disaster liaisons and representatives of the Insurance Department in order to coordinate disaster response.
The Insurance Emergency Operations Center will be activated upon direction of the Superintendent of Insurance, in accordance with the nature and extent of the event. Where possible, this determination will be made in conjunction with the Insurance Department’s disaster coalition partners.
1) Disaster Response Plan and Questionnaire
Each addressee of this letter should incorporate the New York State Insurance Disaster Coalition procedures into its own disaster response plan. Since the New York State Insurance Disaster Coalition procedures and the Insurance Emergency Operations Center continue to be integral parts of the industry’s response to any disaster in New York State, the submission of each insurer’s disaster response plan is necessary to maintain the effectiveness and accuracy of information used by the Disaster Coalition in the event of a future disaster.
a) Disaster Response Plan
The disaster response plan should describe how each addressee intends to provide its policyholders with the resources needed to recover from a disaster. To this end, a disaster response plan should at a minimum detail what preparations the entity has made, where applicable, with respect to the following:
Please note that more detailed guidance about creating a Disaster Response Plan is provided in the attached appendix.
By June 1, 2008, each company must submit a Disaster Response Plan to the Insurance Department. Entities may provide their completed disaster response plans to the Insurance Department via the Insurance Department Portal Application or by hard copy. No other format will be accepted.
The Insurance Department recommends that companies provide the disaster response plans via the Insurance Department Portal Application.
Any United States mail should be addressed to:
State of New York Insurance Department
Disaster Preparedness and Response Bureau
DRP Unit, 5th Floor
25 Beaver Street
New York, NY 10004
b) Disaster Response Plan Questionnaire
The Disaster Response Plan Questionnaire is not to be used in lieu of an addressee’s own disaster response plan. Rather, the requested information is to be included as part of each entity’s own plan.
By June 1, 2008, the Disaster Response Questionnaire must be submitted to the Insurance Department via the Insurance Department Portal Application or in hard copy. No other format will be accepted.
By completing the Disaster Response Plan Questionnaire, each entity will be providing the Insurance Department’s Disaster Preparedness and Response Bureau with the name of the designated disaster liaison(s), along with that person’s telephone and cell phone number(s) (for both business and after business hours), email address, and/or pager number, if applicable. Any change in contact information should be reported immediately to the Insurance Department by submitting an updated Disaster Response Plan Questionnaire.
The Insurance Department recommends that companies provide the completed Disaster Response Plan Questionnaire via the Insurance Department Portal Application.
If the company must submit the questionnaire in hard copy, please e-mail the Insurance Department at firstname.lastname@example.org to request a copy of the questionnaire to be completed.
2) Business Continuity Plan Questionnaire
To assure the Insurance Department that each addressee has taken steps to put in place a Business Continuity Plan that would reasonably ensure that the recovery of critical business processes could take place in the event of a disaster, each addressee is required to complete the Business Continuity Plan Questionnaire and attest to the accuracy of the answers provided.
By June 1, 2008, the Business Continuity Plan Questionnaire must be submitted to the Insurance Department via the Insurance Department Portal Application or in hard copy. No other format will be accepted.
The Insurance Department recommends that companies provide the completed Business Continuity Plan Questionnaire via the Insurance Department Portal Application.
If the company must submit the questionnaire in hard copy, please e-mail the Insurance Department at email@example.com to request a copy of the questionnaire to be completed.
1) Insurance Company Disaster Liaisons
Upon the Insurance Department’s activation of its Insurance Emergency Operations Center (IEOC), the Superintendent may activate designated insurance company disaster liaisons representing several of the largest underwriters in the emergency or disaster areas. Participating companies will be determined based on the previously described Pre-Disaster Reports. Disaster liaisons will be contacted based upon information submitted in the Disaster Response Plan Questionnaire.
Subsequently, disaster liaisons should be prepared to participate in the State’s Disaster Response Plan as follows:
2) Liaison Duties and Responsibilities
Insurance company disaster liaisons should:
Post Disaster Coverage Data and Loss Statistics
Depending on the type of emergency encountered, in the ensuing days after a disaster, the Insurance Department will contact disaster liaisons, as needed, who will be required to provide to the Insurance Department specific statistics about insured losses. These statistics will be periodically updated on an as-needed basis, but not less than monthly.
Reports will be consolidated by Insurance Department staff for submission to SEMO and the Governor’s office only.
All of the above reports and statistics are to be compiled and summarized by Insurance Department personnel for internal Insurance Department use. Reports submitted to SEMO and the Governor will be on an aggregate basis, with no individual company information identified in those reports.
At the time of submission, an insurer should request an exception from disclosure under Section 89(5) of the Public Officers Law (commonly known as the Freedom of Information Law, or FOIL) for any information or reports that it submits to the Insurance Department that it believes are trade secrets or commercial information that, if disclosed, would cause substantial injury to its competitive position.
In the event that a request is received by the Insurance Department for the release of information pursuant to FOIL and the insurer requested an exception from disclosure upon submission, the insurer will be notified and given the opportunity to respond to the Insurance Department in accordance with FOIL and Regulation 71 (11 NYCRR 241.6).
2) Communications Network
Insurance industry representatives of the New York State Insurance Disaster Coalition are requested to provide the Insurance Department with Internet links to not-for-profit websites that are beneficial to the public before, during, and after a disaster.
Your cooperation in furnishing timely and accurate responses is essential to the success of the New York State Insurance Disaster Coalition, and is appreciated by the Insurance Department and the people of New York State.
Very truly yours,
Superintendent of Insurance
Additional Guidance on Creating a Disaster Response Plan
If your Disaster Response Plan provides affirmative answers to the following questions, it generally will meet the Disaster Response Bureau’s best practices standards for a disaster response Plan.
Your disaster response Plan should describe how you intend to provide your members and subscribers, as well as, providers with the resources they will need to recover from a disaster.
Claimant Services: (Doctors & Hospitals as claimants)
Testing of Plan: