Tuesday, May 29, 2007

Louisiana urged to make insurers pay up for $3B in shortfalls

From nola.com:

With federal officials hinting it is unlikely Washington will bail out Louisiana's Road Home program from a projected $3 billion shortfall, Gov. Kathleen Blanco and a top Louisiana Recovery Authority member are recommending the state seek more money from the group they claim caused about half the deficit -- insurers who underpaid homeowners for wind damage.

Go here for more. Also, thanks to the folks at ITP for noting that when it came to insurer payments in LA,

1. Insurers paid only 61% of total insured damages, including the flood program, while the state expected 76%.

2. Only 23% of policyholders got 100 cents on the dollar.

3. 37% of policyholders received less than 50 cents on the dollar, including flood.

4. About 8% received less than 10 cents on the dollar. Source.

Expect lawsuits before the upcoming 2 year SOL.