Albany Times-Union | By David Catalfamo
May 24, 2024
New York told insurers to comply with the Child Victims Act. But they are doing nothing to enforce it.
It’s been five years since the landmark Child Victims Act was signed into law, a critical measure that granted survivors of child sexual abuse a pathway to justice and closure.
However, thousands upon thousands of survivors are still awaiting justice. Meanwhile, organizations across New York — from religious institutions to school districts to child care agencies — are grappling with the costs of these lawsuits.
To address these costs, the state Legislature is considering establishing a $200 million Child Victims Act Fund to make grants available for reimbursing public school districts and foster care agencies named as defendants in child sexual abuse cases. The fund is a noble goal, but it fails to tackle the biggest issue — the insurance companies fighting to delay and deny their responsibilities for as long as they can, at the expense of survivors.
Insurance companies have collected billions of dollars in premiums from schools, nonprofits, religious institutions and childcare agencies; without their participation, there can be no just compensation for survivors. It’s time for Albany to hold big insurance accountable for their refusal to pay CVA claims. The clock is ticking, and survivors cannot afford more stopgap measures.
Since 2019, insurers have engaged in protracted legal battles against clients affected by the CVA in cases against hospitals, schools, the Boy Scouts, counties and religious institutions. Right now, the worst offender – Chubb – is actively denying that they owe an obligation for a single CVA case involving their long-time client, the New York Archdiocese, before a single case has even gone to trial, putting hundreds of millions of dollars at risk for child sexual abuse survivors.
Survivors and their advocates are pushing back – but they need help from Albany leaders.
Regulatory bodies, including New York’s Department of Financial Services, have released guidance requiring insurance companies to comply with the CVA. However, they are doing nothing to enforce it.
The implications of Chubb’s actions are far-reaching. Every legal battle fought to deny a survivor compensation is an effort to grind down the value of survivors’ claims. Survivors are literally dying before their case can be heard. Age, life expectancy, future earnings, pain, and suffering are all considered part of negligence claims – the shorter the lifespan, the smaller the award. This stance not only inflicts additional emotional distress on survivors but also sets a dangerous precedent that could deter future victims from coming forward for fear they will do so in vain.
This issue transcends individual companies or claims; it indicates a culture within the insurance industry that needs urgent reform. There must be a shift towards greater accountability and transparency, where insurers are held to their commitments and the spirit of laws like the CVA.
Insurance, at its core, is a service based on mutual trust and the principle of shared risk. Policyholders pay premiums with the expectation that the insurer will pay claims when necessary. When insurers choose to engage in legalistic wrangling, prioritizing profit margins over the well-being of individuals they pledge to protect, they do so at the cost of survivors.
Survivors of childhood sexual abuse deserve more than the cold calculus of the insurers’ actuarial table; they deserve compassion, respect and support. It is time for the insurance industry to reassess its values and operations, ensuring its policies and practices do not further victimize those who have already suffered too much.
As Albany lawmakers tackle the obstacles facing child sexual abuse survivors, they must hold insurers accountable and ensure that justice prevails over corporate profits. The path forward must demand that every entity, including insurers and the state, contributes restitution for survivors.
David Catalfamo is executive director of the Coalition for Just and Compassionate Compensation.