Effective June 30, 2020 at 5:00 PM, CFSIC has temporarily suspended the acceptance of applications, including applications for Pending claimants, until further notice.
Pending Claims: Background
On January 13, 2020, CFSIC created a third class of claimant...the “Pending” claimant. Prior to that time, a Type 1 or Type 2 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.)
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 then about the totality of our known funding sources.
When we re-opened our doors for applications on January 13, 2020, we did it solely for the Pending claimant class.
We did it that way because we calculated, at the time we re-opened our doors, that we would only have enough eventual funding to handle existing Active and Inactive claimants who had been in line for some time. We made it clear at the time we re-opened that no Pending claimant (even if that claimant was a Severity Class code 3 or under normal circumstances could otherwise have been made active) could count on funding.
On June 30, 2020 we closed our doors again. At that point we had 431 Pending claimants registered. Given what we know now about the extent of expected funding from the $12 per homeowner policy assessment being collected in Connecticut (Healthy Homes Fund), we believe that, eventually, we should be able to assist between 100 and 150 of the existing 431 Pending claimants who registered with us. This means that a large number of these claimants will never receive funding unless other sources of revenue can be found.
Lastly, CFSIC’s sunset date (the date it goes out of business) is still June 30, 2022, and unless it gets moved to June 30, 2030, even the 100 to 150 Pending claimants noted above won’t get funded...because CFSIC will have ceased operations.
The following Q&A should help everyone understand more about how the Pending claim concept works.
Question: I applied on January 13, 2020. I have a verified Severity Class coded 3 foundation, and I applied as a Type 1 claimant. What is actually happening to my claim?
Answer: You became a “Pending Claimant” in our system. This means that we registered your claim and all the data you sent us. We gave you a claim number, and we acknowledged your claim. However, you have not been assigned to a claim adjuster, because we can’t do anything with your claim until we get through all Active and Inactive Type 1 and Type 2 claimants, because of the structure under which our funding is received.
Question: Are you saying that, even if I have a completed application and a verified Severity Class code 3 foundation, you will be unable to make my claim “Active” or even Inactive” on or after January 13?
Answer: That’s correct. You will not be able to become an Active or Inactive claimant until all current Active and Inactive claimants are fully adjusted and paid. You will be a Pending claimant. You may remain a Pending claimant for a very long time. You may never receive any funding.
Question: But don’t you know for certain that you’ll be getting approximately $10.6 million in June of 2021 and every year thereafter through June 30, 2030?
Answer: No. We don’t know that for certain. We don’t know the amount, and we don’t know if we‘ll get the funds beyond the current June 30, 2022 sunset date.
Question: So if the sunset date gets moved, you get enough money in June of 2021, and you make my Pending claim an Active claim in, say 2028, and I am a Severity Class 3, that means I jump ahead of all the existing Severity Class 2s that have been in line since January 10, 2019...right?
Answer: No. As of January 13, 2020, we are not going to permit any Severity Class 3 claim originally filed as a Pending claim to jump ahead of an active Severity Class code 2 already registered with us as an active claim prior to January 13, 2020. We have many active Severity Class coded 2 claimants who have been in line since January of 2019, and we have determined that it is fair to issue Participation Agreements first for all existing active 3s and 2s in our system before any Pending claimant can get in line for a Participation Agreement. This is only fair, given how long people have waited.
Question: But I thought Severity Class coded 3 claimants would always be ahead of everyone else. What has changed?
Answer: CFSIC’s Underwriting and Claims Management Guidelines changed effective January 13, 2020 to require that CFSIC issue Participation Agreements to valid, Active Severity Class 3 and 2 claimants who have been in line since the inception of our program before we move any Pending claimants into Active or even Inactive status...regardless of funding amounts to come.