On Jan. 31 "we provided voluminous information that refutes any factual basis for the allegations contained in [the letter]," says Tower, adding that it has since heard no word from the DFS.

"We emphatically reject the allegations set forth in [the letter] and [Gov. Cuomo] press release," the insurer continues. "We were surprised and disappointed to see that the governor's office repeated the same allegations…without any acknowledgement that Tower complied with the DFS's requests, with information that fully refutes the allegations contained in the DFS's original inquiry."

Policyholders of Tower have complained of the insurer's alleged failure to send adjusters after Sandy. Some say claims were denied over the phone, with no adjuster visit, says the DFS. Additional complaints against Tower include wrongful denial of claims under the sewer backup exclusion, difficulty reaching the company, and of delays in the claims process.

New York-based Tower says it takes its obligations to policyholders seriously. It added that many employees were personally affected by Sandy, but "thousands of our employees, adjusters and agents spared no effort in meeting our obligations to the Sandy-affected communities—often the same communities where they live and work."

Tower has closed 95 percent of Sandy claims and paid more than $160 million to policyholders.

Narragansett Bay and Kingstone have not responded to requests for comment.