State takes action against AIG company over fire claims handling

California insurance regulators have filed a trio of enforcement actions against an AIG-owned company for its handling of claims from Sylmar homeowners for damages caused by the 2008 Sayre fire.

The fire, which occurred on Nov. 14, 2008, destroyed 480 mobile homes at the Oakridge Mobile Home Park. The New Hampshire Insurance Co., a subsidiary of multinational insurer AIG, covered 370 of the structures.

The California Department of Insurance said it received numerous complaints from New Hampshire policyholders about the company and its claims processing agent, York Risk Services Group Inc. The department subsequently cited the two companies for 125 violations of state law for alleged unfair or deceptive claims practices.

Each violation, if found to be valid, carries a civil penalty of up to $10,000 per act. New Hampshire plans to contest the citations in an administrative hearing, the department said. AIG did not respond to a request for comment.

“We expect insurers and their agents to be thoroughly diligent in handling claims, especially at times of devastation such as the Sayre fire,” said Adam Cole, the department’s general counsel. “The allegations in this case reflect a troubling lack of attention to consumer needs by New Hampshire Insurance Co.”

RELATED:

Winds relent but fire persistsCalifornia insurance regulators take enforcement action

Panorama: Aftermath of Sayre fire at Oakridge mobile home park