Grand jury to study claims: It wants records from Oklahoma case
Ins-Folks,
This item, from the SunHerald’s Inimitable Anita Lee, appeared way back in September. But I’ve been meaning to get to it because a big ITP theme is that Katrina is the tip of a very large insurance iceberg, or should I say, insurance iceberg (people are starting to mock my use of bold face. Smart Alecks.).
The story says the federal grand jury in Jackson wants records from an Oklahoma case in which a civil jury last May found that State Farm “intentionally and with malice” breached its duties to policyholders following a 1999 tornado. The jury found (not “alleged,” folks), in part, that State Farm hired Houston-based Haag Engineering Inc.,“knowing the company was predisposed to produce damage assessments that would allow the insurer to minimize or deny policyholder claims,” Lee writes.
Haag, Lee adds, produced a contentious report after Katrina that concluded — implausibly, or really, not credibly — that Katrina’s storm surge preceded the wind, shifting liability from State Farm. I-Fans, no one believes that. State Farm says it is cooperating with the grand jury and performing its own investigation of Haag. Lee tells us that the Oklahoma records include testimony from State Farm Chairman and CEO Edward B. Rust Jr., the company’s vice chairman and vice president for claims.
Ok, I’ve been threatening this for a while, but I’m going to start sending these to insurers, regulators, tort lawyers and defense lawyers. Forgive me if I recycle some jokes. I won’t do it again. Also, let me know if I sound more serious, which I don’t want to do.
November 14th, 2006 at 4:33 pm
This is off-topic somewhat, but rumors are flying that State Farm maybe pulling it’s wind coverage for the six coastal counties in Mississippi. That’s already the case for new policies but the changes will be for existing policy holders. I know for sure that Farm Bureau will be doing so in Harrison County starting in January.
That translates into $1,110.00 more insurance needed for a $100,000.00 dollar home north of Interstate 10 with a deductible of $2,500.00.
November 14th, 2006 at 5:13 pm
Seawitch,
Thanks again.
The topic of insurance availability is to come.
Dean
November 15th, 2006 at 12:24 pm
This from my cousin. Love you, BA!
http://www.sptimes.com/2006/11/14/Business/Cancellation_coincide.shtml
November 15th, 2006 at 4:49 pm
I got some friends who sell insurance from a storefront out here in Chicago. The way those people talk, if you listen long enough you want to insure stuff you don’t even have. One of the lesser joys in my life is listening to a skillful salesperson sell to someone—as long as I’m not that someone anyway. Anyhow they’re this big Irish Catholic family, these insurers. I remember one night at a party speaking to the partriarch of the clan. He was earnestly telling me about boats and things about boats. The way he phrased his speech, his chioce of words and emphasis reminded me of a guy I knew (now deceased) back in the day who lived in some section 8 housing in pre-gentrification Wicker Park. Being a neighborly neighbor I was hanging out getting to know the people in the complex, which was both a block of residence as well as what is known as a ‘crack house’. My friend kept speaking in odd circles puntuated by pregnant pauses and looks. Finally, a bit frustrated, he just flat-out asked me “did you come here to buy cocaine”? I hadn’t, and told him as much. We got along a lot better after that.
After the whole boat speech my wife asked me what we were talking about. I told her I hadn’t the slightest idea, but that it was a really fun talk.
November 16th, 2006 at 12:07 pm
My insurance agent told me that those who have car insurance will more than likely not have their wind coverage dropped.
December 28th, 2006 at 9:41 am
[…] Let’s get the freakin’ data. It’s out there. How can you reform something if you don’t know anything? What did people get paid per policy? Per amount they believe was owed? What is the Louisiana Recovery Authority finding in the 120,000 claims it is taking on? What’s in the 15,000 records the two sisters turned over to Scruggs and Hood? What’s in the Oklahoma records? What did State Farm Chairman and CEO Edward B. Rust Jr. say in his testimony? What do juries think of individual policyholders’ claims that insurer claims denials were peremtory, systematic and illiegal? What ITP wants is a reasonable examination of insurer performance after Katrina. ITP believes its interest is in the public interest. Such is ITP’s chutzpah(1), it believes its interest is the public interest. And don’t even get ITP War Eagle started on this topic. Good thing he’s off chasing mice at the moment. […]