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

[Westley Annis]

A representative of the insurance industry warns that a large class-action
suit by the state could drive insurers out of the market
 
And that is what infuriates me to no end:  Them calling the shots thru scare
tactics!


 

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