Lott of Power
INSURERS GET AN EARFUL FROM SENATOR. Joseph Treaster. The New York Times. 2006/10/12. Page C1. On October 11
Senator Trent Lott, the former majority leader and one of thousands of homeowners on the Gulf Coast involved in disputes with their insurers over coverage for damage from Hurricane Katrina, expressed anger about the many claims rejected by insurers. Lott characterized insurers as insensitive and said that he inserted a provision into a bill signed last week by President Bush directing the Department of Homeland Security to investigate potential fraud by the insurance industry. Lott also said that he told his staff to investigate the industry’s tax rates and was working on a bill that would challenge insurers’ exemption from antitrust laws.
State Farm rejected Lott’s claim for the loss of his $400,000 home in Pascagoula, Mississippi. Representatives of the insurance industry deny allegations of fraud and some suggest that Lott is improperly using his position in Congress. Robert Hartwig, chief economist for the Insurance Information Institute, expressed regret that the Department of Homeland Security was being directed to use part of its limited resources on an unjustified investigation. Insurers state that they have paid $13.6 billion in Katrina claims in Mississippi and have settled 95 percent of the state’s 355,000 homeowners claims. Lott said that he also planned to introduce legislation requiring insurance policies to prominently explain in plain English what is not covered.
Aparently "This policy does not cover anything not stated in the policy." Should be rewritten to plain English. "If we haven't said it is covered. It is not covered." Homeland Security doing Fraud investigation!!!! Give me a break.
Senator Trent Lott, the former majority leader and one of thousands of homeowners on the Gulf Coast involved in disputes with their insurers over coverage for damage from Hurricane Katrina, expressed anger about the many claims rejected by insurers. Lott characterized insurers as insensitive and said that he inserted a provision into a bill signed last week by President Bush directing the Department of Homeland Security to investigate potential fraud by the insurance industry. Lott also said that he told his staff to investigate the industry’s tax rates and was working on a bill that would challenge insurers’ exemption from antitrust laws.
State Farm rejected Lott’s claim for the loss of his $400,000 home in Pascagoula, Mississippi. Representatives of the insurance industry deny allegations of fraud and some suggest that Lott is improperly using his position in Congress. Robert Hartwig, chief economist for the Insurance Information Institute, expressed regret that the Department of Homeland Security was being directed to use part of its limited resources on an unjustified investigation. Insurers state that they have paid $13.6 billion in Katrina claims in Mississippi and have settled 95 percent of the state’s 355,000 homeowners claims. Lott said that he also planned to introduce legislation requiring insurance policies to prominently explain in plain English what is not covered.
Aparently "This policy does not cover anything not stated in the policy." Should be rewritten to plain English. "If we haven't said it is covered. It is not covered." Homeland Security doing Fraud investigation!!!! Give me a break.
posted by Tough_Waters at 10:22 AM
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