Rep. Mike Lawler accuses Hochul of failing to force insurance companies to pay claims from sex abuse victims

Representative Michael Lawler from New York is criticizing Governor Kathy Hochul for not taking swift action to ensure that insurance firms cover claims for thousands of alleged sexual assault victims who have initiated lawsuits under the Child Victims Act.

In a pointed letter addressed to Hochul on September 26, Lawler stated, “The Child Victims Act (CVA) passed nearly seven years ago was designed to open the doors of justice for those who have been silenced for too long. However, in New York, survivors are met with two significant obstacles: insurance companies denying their rightful payments and the State of New York failing to act.”

Lawler continued by expressing, “These injustices reflect the systemic shortcomings of your administration and require immediate action.”

The legislation facilitates the ability of New Yorkers, who were sexually abused as children, to pursue legal action as adults. Victims can file criminal charges until they turn 28 and initiate civil lawsuits until the age of 55.

Additionally, victims were granted a one-year window during which they could file lawsuits regardless of when the offense transpired.

Insurers connected to various entities, including the Catholic Church, schools, hospitals, and Boy Scouts, have reportedly denied claims from abuse survivors, arguing that decades of child sexual abuse by predatory individuals were “anticipated or intended,” according to Lawler.

As reported by the Coalition for Just and Compassionate Compensation, numerous cases remain entangled in legal processes, with insurers refusing to settle payments on behalf of their clients.

Lawler asserted that instead of addressing these issues, Hochul’s administration has “declined to enforce” both the Child Victims Act and Department of Financial Services Circular Letter No. 11, which mandates that insurers “cooperate fully” and act promptly without unnecessary delays regarding victims’ claims.

“This negligence has enabled insurers to evade their obligations,” said Lawler.

Moreover, Lawler noted that the state has not rectified the “two-tiered” system distinguishing between cases of sexual abuse in private versus public institutions.

“Survivors of abuse in private facilities at least have the opportunity to file claims; in contrast, those who suffered abuse in state-run facilities face a complete dismissal of their cases even before they are heard,” he lamented, labeling this double standard as “indefensible.”

“Your failure is systemic and is compounding by the day,” he added.

He called upon Hochul to enforce the CVA and Circular 11, compelling insurers to negotiate fairly and to amend the pleading standard retroactively for claims against the State of New York.

Lawler urged that equal justice be extended to all survivors, regardless of whether the abuse occurred in public or private settings.

“Justice cannot be selective. The commitments made to survivors should not come with conditions. Insurers’ financial obligations must be mandatory,” he remarked.

A June ad campaign also pressured Hochul to take action on behalf of sexual assault victims, funded by the Coalition for Just and Compassionate Compensation, which has support from the Catholic Church.

The fallout from child abuse scandals, especially within the Catholic Church, has proven costly.

Cardinal Timothy Dolan mentioned last year that layoffs at the Archdiocese of New York were needed to manage the financial strain due to the scandal involving clergy from years past.

In response, Hochul’s office defended her track record in overseeing child sex abuse cases.

“Mike Lawler is attempting to distract from his own inadequate record. Governor Hochul has consistently advocated for these victims and has worked towards empowering survivors by signing the Adult Survivors Act into law in 2022,” a spokesperson from Hochul’s office stated.

They added, “The courts are addressing these complex cases and New York State will ensure accountability for all parties involved.”

The New York Department of Financial Services is keeping a close watch on the ongoing litigation as courts seek to clarify crucial legal questions related to the insurers’ liabilities in sexual abuse cases, according to the governor’s office.