Pending Claims: Background
On January 13, 2020, CFSIC created a third class of claimant...the “Pending” claimant. Prior to that time, a Type 1 (foundation replacement) or Type 2 (foundation reimbursement) claimant could be only an “Active” claimant (a claimant where the application is complete and where otherwise that claimant is potentially in line for funding) or an “Inactive” claimant (where for one or more reasons that claim cannot be made Active.)
Other than those two designations, no other designation existed before January 13, 2020.
The Pending claimant concept was designed to help homeowners register their claims with CFSIC...even though we might never be able to provide those claims with funding, given what we knew at the time about the totality of our known funding sources.
When we re-opened our doors for applications on January 13, 2020, after a recess in taking applications, we did it solely for the Pending claimant class.
On June 30, 2020 we had to close our doors again to applications. At that point we had 431 Pending claimants registered. Given what we knew then about the extent of expected funding from the only remaining continual source of funding, which is the $12 per homeowner policy assessment being collected in Connecticut (Healthy Homes Fund), we believed that, eventually, we would only be able to assist between 150 and 200 of the existing 431 Pending claimants who registered with us.
Lastly, on June 30, 2020, we believed at that time that CFSIC’s sunset date (the date CFSIC was to go out of business) was still June 30, 2022, and unless it was moved to June 30, 2030 or an even later date, even the 150 to 200 Pending claimants noted above wouldn’t get funded...because CFSIC would have ceased operations.
All that has now changed.
CFSIC has received a pledge of another $100 million from the State of CT to be paid to us in four $25M tranches, to begin on July 1, 2022.
In addition to this, the CFSIC’s sunset date has been removed.
What this means is very important to Pending claimants. Please read the Q&A below.
The following Q&A should help everyone understand more about how the Pending claim concept now works.
Question: So I want to get this straight…CFSIC will receive another $100 million beginning on July 1, 2022?
Answer: Correct…in four installments of $25M.
Question: And with the sunset date removed, over the next four years is CFSIC going to continue to get an additional $10.5M to $11.0M in Healthy Homes funding on top of that?
Answer: Yes. We will get roughly $35.5M to $36.0M each year for the four years commencing July 1, 2022.
Question: Okay. So with that in mind, does this mean you’ll finally get to Pending claimants?
Answer: It does. The ESIS ProClaim staff will start the process of reviewing Pending claimant files that exist in our system on January 5, 2022, with the idea that we will put as many as we can into line in Active status starting in the summer of 2022.
Question: Will you be getting to all Pending claimants?
Answer: No. On August 16, 2021, CFSIC made a commitment to the existing group of Pending claimants registered with us on or before that date that we would get to the Severity Class 3 and 2 claimants in that group before we got to any other Pending claimant registered in our system after August 16, 2021.
Question: So, there is a second group of Pendings now?
Answer: Yes. Anyone registering their claim with us, regardless of Severity Class code, after August 16, 2021, will be designated as a “Tier 2 Pending claimant.” We will handle the “Tier 1” Pending claimants first as quickly and as correctly as we can beginning in the summer of 2022.
Question: So, I’m gathering from your answer that essentially every claimant that CFSIC takes in now is a Pending claimant by definition?
Question: I have a verified Severity Class coded 3 foundation, and I just found that out. If I apply as a Tier 2 Pending, do I get in line right away?
Answer: No. You would remain a “Tier 2 Pending Claimant” with a Severity Class 3 foundation. We will get to you eventually, but not until we have made either Active or Inactive all Severity Class 3 and 2 Tier 1 Pendings ahead of you. This means going into their files and working those files ahead of Tier 2 Pending claimants.
Question: So, if I apply as a Tier 2 Pending claimant now, do I still get a claim number?
Answer: Yes, you do, and that claim number means you are registered in our system.
Question: So that means a claim adjuster will reach out to me?
Answer: No. You will have no contact with a claim adjuster at that point. You won’t have that contact until and unless we can start to open claim files for Tier 2 Pending claimants. CFSIC’s adjusters are very busy managing the day-to-day process of existing Active and Inactive claimants as well as all the construction associated with those claims.
Question: Can I file a claim as a Pending claimant where I just file the application, even if I don’t have all my points of evidence?
Answer: You can...and you will still get a claim number when you push the “submit” button...but remember: you will never be able to move beyond that point into Active status, as funds become available, until your application is complete in each and every regard. There’s a myth in the CFSIC program that your foundation remediation is based on the date you first applied to CFSIC. That has never been true.
Question: So, is there any good news here?
Answer: Of course…we didn’t think that we would ever be able to get to the first group of Pending claimants until most probably 2025 or 2026 at the earliest. With the new round of funding, we’ll be getting to more than 100 Pendings in 2022.