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[Westley Annis]

*	KATRINA CLASS ACTION SUIT FILED AGAINST INSURANCE GIANT AIG 

KATRINA CLASS ACTION SUIT FILED AGAINST INSURANCE GIANT AIG	 
Americans for Insurance Reform (AIR) is a national coalition of public
interest organizations that support effective insurance industry reforms to
control skyrocketing insurance rates, reduced insurance coverage, arbitrary
policy cancellations, mismanagement and other insurance industry abuses.

 
Claims Insurer Has Neglected Desperate Policyholders after Hurricane 

CONTACT: Laurie Beacham (212) 267-2801 

Toni Swain Orrill, a New Orleans resident whose house was severely damaged
in Hurricane Katrina, filed a class action suit Thursday against American
International Group (AIG) and its subsidiary, Audubon. The suit charges that
the company has failed to help its policyholders who are in desperate need
of assistance after the hurricane. 

AIG and Audobon were the underwriters and service providers of Louisiana
Citizens Fair Plan (FAIR), which provides homeowners' policies of last
resort to those who cannot get insurance elsewhere, including many poor
people in New Orleans and the surrounding area. The class action suit is on
behalf of Louisiana's FAIR plan policyholders -- about 400,000 people. The
suit alleges that AIG has completely failed to provide any way for its
policyholders whose homes have been damaged to initiate a claim or even
reach its offices to find out how to do that, or to provide temporary
disaster relief provided under their policies. 

Orrill's husband, Ray, an attorney who represents his wife in the suit,
said, "My wife has called and emailed the insurance company over 60 times,
and could never get through. It is outrageous that she, and so many others
whose homes were severely damaged in the storm, cannot even get through to
their insurers, much less get relief from them. Someone had to take a
stand." Ray Orrill said that another insurer, Allstate, provided his wife
with a FAIR claim form as a courtesy, after failing to get any response from
AIG. She submitted it to AIG almost thirty days ago and has not received a
response. 

Americans for Insurance Reform (AIR) learned of Toni Swain Orrill's
situation when she called the hotline it set up to assist Katrina victims
when they encountered obstacles to receiving assistance from their insurers.
According to AIR co-founder and spokesperson Joanne Doroshow, "This is the
worst case that we have seen of a complete failure of an insurance company
to respond to the immediate and dire situation of its Katrina policyholders.
Many FAIR policyholders were struggling economically before the storm hit,
and some are now reaching the point of severe impoverishment due to AIG's
failure to help them. Many have still not received the temporary living
expenses they are entitled to under their policies." 

Over a month after Katrina, AIR's hotline is still receiving calls from
people who cannot reach AIG insurance adjusters. One woman whose home was
devastated reports she's been completely unable to reach any AIG
representative to request temporary funds or a visit from an adjuster.
Another caller said she's been passed around from number to number and AIG
has been largely unresponsive to her. 

AIR's Hotline number is 888-450-5545. For further information, see
http://insurance-reform.org.