NU Online News Service, Jan.12, 10:05 a.m. EST
The New York Insurance Department has issued a legal ruling that with certain restrictions a property and casualty insurer can pay claims by issuing prepaid debit cards rather than checks if the claimant agrees.
According to the department, the insurer must make the funds accessible to the claimant within the applicable timeframe for paying settlements; must fully explain all aspects of such a program, including the disclosure of any potential fees to the claimant; make clear that the claimant's participation in the program is voluntary and that the claimant must opt into the program; and must ensure that the claimant has easy and ready access to the funds.
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