It has been two years since Real Legacy announced their insolvency1 and only approximately 800 of the claims have been paid (excluding 430 cases that are still in court and all claims that did not have an agreement prior to the insurance company announcing its insolvency).2 In other words, it could take three or four more years for Real Legacy insureds to get their Hurricane Maria claims paid.
In the coming weeks, a second payment plan will be presented to Puerto Rico’s Insurance Commissioner, and upon his approval an amount and date will then be determined for the second phase of Real Legacy claim payments.
Many insureds, especially commercial insureds, are expressing their disappointment both with the insurance companies and with the Insurance Commissioner’s Office for not warranting their policy coverage. Many are now searching, considering, and trusting surplus lines. Others are calling for stricter laws on insurance companies to set aside enough reserves to protect themselves—but most importantly their insureds—during catastrophic events such as Hurricane Maria in which a great number of claims are filed.
Along with Real Legacy, other insurance companies filed insolvency after Hurricane Maria, including Integrand, which is still in its first phase of receiving claim forms and has not made any payments to insureds or announced if they will assume any of the coverage. In the meantime, insureds who for many years paid and trusted that these insurance companies would protect and cover damages to their properties and businesses, will have to continue waiting and hoping that some day their claim will get paid.
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1 https://www.propertyinsurancecoveragelaw.com/2019/01/articles/insurance/puerto-rico-update-real-legacy-confirms-rumors-of-insolvency-whats-next/
2 Graves Atrasos de Aseguradoras Para Pagar Daños A Tres Años Del Huracán Maria. El Nuevo Dia. February 7, 2021.
