[StBernard] La. Politics by John Maginnis: State to take over claims

[Westley Annis]

La. Politics by John Maginnis: State to take over claims
<http://www.businessreport.com/newsDetail.cfm?aid=9202&cid=2>

Before awarding rebuilding grants or buying out houses damaged by the
hurricanes, the Louisiana Recovery Authority will require homeowners to sign
over their insurance claims to the state, which will have the option of
suing insurers for larger settlements. The idea is to prevent the Road Home
grants of up to $150,000 from being used as a subsidy by insurance companies
who could possibly low-ball settlement offers. "It occurred to us that
insurance companies might be using the Road Home as an excuse to jack people
around," says Walter Leger, a Chalmette attorney who heads the LRA housing
task force. A representative of the insurance industry warns that a large
class-action suit by the state could drive insurers out of the market.