Alex Sink Pushes for Faster Payment of Oil-Spill Claims

Chief Financial Officer Alex Sink is using the spotlight to push the attorney managing BP's $20 billion national, independent escrow claims account to make sure claimants in the state get their money faster. The Democratic gubernatorial candidate issued a list of six suggestions to Kenneth Ferinberg, who previously managed the independent account for the families of 9/11 victims.

"After having worked with frustrated small-business owners for weeks and utilizing my departments insurance claims background, I offer the following recommendations on how you can improve, simplify, and expedite the new claims process, Sink said in a press release.

Here are her suggestions:

• Prompt timelines must be established for every step in the claims process (reporting, acknowledging, evaluating, denying, deficiency and paying claim, etc).
• The documentation that is required of individuals and businesses must be consistent and necessary. In speaking with impacted businesses in Florida, the biggest complaint about the BP claims process is the excessive documentation that is required.

• The appeals process must be simple, fast and impartial. Claimants deserve an appeals system that is straightforward and will not linger on for months.For the appeals process to work smoothly, claimants must be provided specific reasons for any denial.In addition, the claims facility should provide claimants with information as to all their rights once a claim is denied.

Adjusters must be educated as to the type of businesses that will likely make claims and the various claim types that each business may present.For example, here in Florida, it is apparent that the BP claims adjusters are unfamiliar with the accounting practices of the various affected businesses.Fishermen, bait shop owners, restaurateurs and hoteliers have needs that are specific to their industries.An adjuster cannot apply the same standards to a restaurant owner that apply to a commercial fisherman.

A system for dealing with recurring claims must be established.For example, how will the facility treat a claim by a restaurant owner or charter fishing business whose losses continue to mount each month?Will they have to make a claim with the facility each month?Will the facility cut a check each month based on its own investigation?Will the facility be empowered to give a lump-sum payment to the restaurant owner or charter fishing business that will cover all losses up to a prescribed period of time?

A claims representative must retain all documents related to a claim in a file that is organized so that the information is readable and easy to follow.Moreover, there must be a transparent method for claimants and interested parties to track claims. It would be ideal if a claimant could use an Internet-based program to track claims.Claimants should be able to submit their initial and supplemental claims online as well.