Hurricane Katrina Insurers Sued
Five insurance companies in the United States are being sued by the Mississippi Attorney General for trying to make millions of dollars worth of profit from the survivors of Hurricane Katrina. As the claims roll in, disputes over losses have started to filter into the courts, and it is alleged that the companies in question have tried to trick homeowners out of millions of dollars in claims.Jim Hood, the attorney general, stated that the insurance companies made victims sign paperwork confirming that the damage sustained from the hurricane included flood damage, which would therefore not be covered under the policy. The insurers have been telling claimants that it is necessary to sign the forms in order to expedite payment of living expenses.
The attorney general stated: "I want the insurance companies to pay what they actually owe the people of Mississippi." However, an official from one of the insurance companies stated: "The allegations made by the Mississippi attorney general are unfounded. Our company is absolutely not asking policyholders to acknowledge damage is flood-related in order to receive a check for living expenses."
"If these long-recognized and relied-upon exclusions were to be deemed null and void, it would have a significant negative impact on insurance policyholders across the country," the spokesperson added.
Topic Added November 7th, 2005
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