STATE FARM'S HEAD ON A PLATTER
What Gulf Coast Congressman Gene Taylor wanted the Easter Bunny to bring him.
South Mississippi Living 4/07

Friday, July 13, 2007

Beyond the 9th Ward

Beyond the 9th Ward
As I sit here in the town of Bay St. Louis, Miss., one of several tiny coastal beach towns that comprise ground zero for the worst part of the worst natural disaster in the nation, I feel conflicted. The New York Times has published a lengthy article titled Road to New Life After Katrina Is Closed to Many. The article zeroed in on the difficulty of returning home after Katrina. Again, as has been the modus operandi from the beginning, the focus is on New Orleans alone and specifically on residents in the 9th Ward. This is an important heart breaking story. And herein lies my conflict.

The road home after Katrina is equally difficult for those who don’t live in the lower 9th Ward. A few weeks ago, I attended my niece’s 13th birthday party held at Rock ‘n Bowl in New Orleans. How wonderful to see a bunch of 13 year girls so confident, delightful, and vibrant. Their parents dropped them off, stuck around a while and chatted, then left and returned to pick them up when the party ended. One of the mother’s I met was yakking with me about having to go to the laundry mat. In New Orleans, “to yak” means “to talk.” Let’s get some cross cultural adaptation going here, ok? ;) Back to the yakking itself, she was so lovely. She and her husband’s home in Lakeview had many feet of water in it after the U.S. Army Corps of Engineers’ levees broke. Fortunately, they were able to buy a home a few blocks away that was untouched by the water.

Anyway, she was saying how awful it was for her because since the storm, she’s been having to go to the laundry mat to do the clothes. “At THIS age? Girl, you know, I didn’t work all my life to be going to a laundry mat to do my families clothes.” Oooooo. I told her that when I moved back to San Jose, California in 2002, one of my main criteria for renting was having a washer and dryer in my apartment. Period. I was not going to drag my clothes over to a laundry mat and sit there for hours waiting for a dryer, getting stuck using a dryer that hardly dried the clothes and ate up my coins like mad. And I’m only one person. I couldn’t imagine doing it for a family—mom, dad, and kids.

Now what does any of this have to do with a New York Times story about the 9th Ward and going home to New Orleans? My recent five part series focused on broadening the Katrina lens beyond it. The woman with whom I was speaking—I wish I could remember her name. It’s a terrible thing, I know, to not recall someone’s name. But, down here in the greater New Orleans area, which includes the very western part of the Mississippi Gulf Coast and in particular the towns of Waveland and Bay St. Louis (my home town, remember), we don’t remember names that well. Often, we’ll say something along these lines. “You remember the son of Ms Josie who is married to that beautiful woman whose sister works at the bank? Well her mamma’s good looking brother . . .” Not recalling people’s names may be the reason everyone calls everyone honey, baby, dahlin’, shuga, and sweetie.

A few years back, Bob, a boss of mine was going to New Orleans for some kind of work thing. I told him of this delightful cultural verbal habit of ours. Bob came back complaining that I had forgotten to tell him about the mosquitoes and gnats. Poor thing, his neck was raw from the bites. But, he perked up when he said that I was right. Even the big burly man behind the counter of a sandwich shop where Bob had gone for lunch called him “hon.” That’s part of the charm of the area. We don’t care if you really are good looking or ugly, fat or thin, old or young, or your race, ethnicity, or religion. If you talk with the locals, you’ll be called one of the terms named above.

Now where was I on that laundry mat story. Oh yeah. So, the woman with whom I was speaking? She and her husband live in Lakeview, which is the affluent neighborhood that is on the exact opposite economic spectrum of the 9th Ward. One other thing. She and her family are African American.

The media has not sufficiently told the story of the incredible hardships of the road home for New Orleans residents outside of the 9th Ward. And their hardships and stories are also important to know to understand the barriers to a full, vibrant and quick recovery.

Residential Contractors, a Scarce Commodity
Contractors are very, very difficult to come by. Finding a Contractor Like California Dreamin’ tells my mom’s story of looking for contractors to repair her home. The Times-Picayune, the daily paper in New Orleans, ran a story titled A Clog in the Line which told of the incredible hardship in finding a plumber in New Orleans. Over 18 months ago, my own brother bought a brand new hot water heater that he needed to install in his home. He has paid plumbers to come out to do the work, they didn’t show. He has asked others for quotes and they tell him, “We don’t give quotes, we give bills.” What?!

Clearly, the terse delivery of the message is rude and carries an arrogance that is unhelpful in this Katrina area where doing everyday normal things—such as getting a quote for installing a hot water heater—is like walking through glue. Only after many, many months of enduring this ridiculous lack of business etiquette did he learn that what plumbers are finding is that when they go into do a simple, routine job, one pipe after the other begins to crumble and fall apart. And so giving an accurate quote becomes incredibly difficult for the plumbers.

If I recall correctly, and I’m not sure that I do, the reason for the pipes crumbling is because the salt in the water that flooded the homes corroded the pipes. Something like that. It’s all Katrina related. That’s no excuse for the rudeness. Since the licensing process takes a few years to obtain in Louisiana, plumbers from other parts of the country who would love to donate their talent are prohibited from doing so.

The courts, jails, and child support
Recently, a friend of mine was telling me that she finally hauled her ex into court for his failure to pay child support. Life is tough anyway here in Katrina Land. Raising kids without the financial assistance of their dad makes life tougher. So what happened once they got to court? Well, under pre-Katrina days, he would have been put in jail. However, we don’t have a jail to put him in. He got a free pass for a few months. Without the leverage of jail time, this takes the teeth out of child support enforcement for those situations that require it.

So what’s my point?
The ravages of post-Katrina life in New Orleans and here on the Gulf Coast are difficult to manage. The impact is broad, wide, and deep. The impact of insurance companies like State Farm, Allstate, and Nationwide that apparently deliberately fail to live up to their financial contract on the wind policies of their homeowner customers is keeping money out of the very hands that need it to rebuild, to return home. For those that have some money to repair their homes and businesses, getting good contractors is an exceedingly rare commodity. Without money flowing into the city and county coffers be it from FEMA or insurance companies or tax revenues, local and county governments cannot rebuild basic buildings such as schools to educate children and jails into which to incarcerate parents who are deliberately failing to live up to their financial obligations to their kids even when they do have these financial resources.

That’s my point. Reputable media outlets like the New York Times must tell the whole story of the challenges that post Katrina life presents. From a strictly political perspective, this is how we bring about recovery faster. The more varied the stories, the more the entire picture becomes clear, the greater the opportunity for momentum to build. That is what is needed most of all: momentum outside of the Katrina-ravaged region regarding everything from Insurance companies failing to pay out on legitimate claims . . . to governments not being able to build schools and jails . . . to homeowners not getting the plumbers and other contractors they need . . . to building low income housing in the 9th Ward and throughout the rest of the Katrina area. This is a broader lens through which to see what needs to be done and what can be done to speed up a vibrant recovery.

Today’s political hell raising activity targets the New York Times. Let’s call and write the paper thanking them for investing the time and money to write the story and devoting the enormous amount of space in the paper itself to raise awareness about the continuing challenges of getting home after Katrina. When we talk with or email the paper, we’ll be asking the editors to broaden their lens to include the plight of those in the rest of New Orleans, its surrounding Louisiana cities, and the entire Mississippi Gulf Coast. We’ll again thank them for providing coverage to something that is important to healing the wounds of Katrina and the pathetic circumstances that the insurance companies’ failure to properly fund and the White House failure to provide appropriate leadership has created.

In this way, we’ll praise their coverage and encourage more articles as we direct their attention to additional stories they could explore beyond the 9th Ward.

Go here for today's political hell raising activities.

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Thursday, July 12, 2007

FEMA funding for new schools in doubt

Ceremony held to transfer military base property

By LEIGH COLEMAN
SUN HERALD

July 12, ,2007

HANCOCK COUNTY --Education officials are sweating out a pending decision from FEMA that could throw a dark cloud over plans for two new elementary schools.

"This has really put a challenge out there for us," School Superintendent David Kopf said Monday of plans to build new schools in the south and north county.

The schools are planned for the Lakeshore and Leetown communities to replace the old Gulfview and Charles B. Murphy schools in the south county and add a new school in the north. Murphy and Gulfview were closed after Hurricane Katrina and would be replaced with South Hancock Elementary in Lakeshore. The new Leetown school, which would be called West Hancock Elementary, is planned because of rapid growth in the north county since the hurricane.

Both projects have been thrown in doubt by a recent FEMA memo that said the federal agency may not help fund any new public projects located in coastal high hazard areas. The old Gulfview Elementary site, where the new South County Elementary would be built, is squarely in such a location.

A non-fund decision from FEMA would endanger both projects because they were contracted as a package deal, with the bulk of the funding coming from FEMA compensation for the loss of Gulfview and Charles B. Murphy. A contract to build the new schools already has been issued to Roy Anderson Corp. for nearly $33 million.

Kopf said the school system had been working with FEMA on the new schools project for months. Then came the bad-news memo.

"Then, 22 weeks after, we get this memo saying they would not fund," he said. "They dropped that bombshell in our lap."

The school system sought help from Gov. Haley Barbour, Sen. Trent Lott, Sen. Thad Cochran and U.S. Rep. Gene Taylor. All have since been lobbying on the county's behalf to have the schools built with FEMA money. "We couldn't have asked for any more help," Kopf said.

Since the hurricane, students who previously attended Gulfview Elementary in the Lakeshore area and Charles B. Murphy in Pearlington have been bused for miles every school day. They have attended class in trailers behind Hancock Middle School, north of Interstate 10.

Kopf said he was communicating this week with Mike Womack, director of MEMA. Barbour has held discussions on the school funding with FEMA leaders in Washington.

Hopefully, a resolution may come soon, Kopf said. Until then, the futures of both new schools are suspended in doubt: "We're delayed on both fronts at this point."


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FEMA trailer park to remain open in Bay St. Louis




The Associated Press
July 11, 2007


BAY ST. LOUIS, Miss. --A FEMA trailer park on U.S. 90 near Hancock Medical Center in Bay St. Louis will remain open for several more months.

The City Council this week agreed to allow the Bay Village Trailer Park to operate until Jan. 31, 2008. It was scheduled to close on Aug. 31.

The Federal Emergency Management Agency had asked the city to allow the park to stay open until Jan. 31, 2009.

Bay Village was one of two parks in a one-block stretch until recently. A smaller park, on U.S. 90 to the east of Bay Village, was closed last week. In that location, FEMA had provided only pads for the trailers and did not operate a full-blown park.

Business owners have complained the park is a haven for criminal activity, including drug deals, burglary, prostitution and begging.

"This has been a major inconvenience to us," said John Rosetti, owner of Rosetti's Liquor Barrel.

Rosetti opened his store in a new building after Hurricane Katrina. He said residents of the park regularly commit crimes in the area and loiter in his parking lot, begging money from customers.

Even though police try to stay abreast of developments and FEMA-hired guards monitor an entrance gate and patrol the park, there seems to be no way to stop the crimes, Rosetti said.

FEMA representatives told council members that the park also houses residents who are not criminals. The also noted that a severe housing shortage in Bay St. Louis and Waveland means there is no place for trailer residents to go if the park is closed now.

FEMA representative Greather Heathcock said Hurricane Katrina destroyed 247 affordable apartments in Bay St. Louis and 496 apartments in Waveland.

"All we're asking for is an extension to give these apartments time to come back on board," Heathcock said.

Following the Aug. 29, 2005, hurricane, Bay Village was opened for employees of the John C. Stennis Space Center who had lost their homes. However, these residents soon moved on because relief programs sponsored by the Navy and other federal agencies became available. The trailers were then occupied by storm victims from various areas.

Phil Strouse, FEMA's local government liaison for Hancock County, said the federal agency eventually plans to start charging rent to storm victims who remain the trailers.

"Then, they're going to be paying $100 to $150 a month to live in a tin can," he said.


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Road to New Life After Katrina Is Closed to Many


Lee Celano for The New York Times
Gwendolyn Marie Allen lives in a FEMA trailer near Baton Rouge with her son, who has schizophrenia, and her severely retarded brother, right.


CONVENT, La. — This was not how Cindy Cole pictured her life at 26: living in a mobile home park called Sugar Hill, wedged amid the refineries and cane fields of tiny St. James Parish, 18 miles from the nearest supermarket. Sustaining three small children on nothing but food stamps, with no playground, no security guards and nowhere to go.

No, Ms. Cole was supposed to be paying $275 a month for a two-bedroom house in the Lower Ninth Ward — next door to her mother, across the street from her aunt, with a child care network that extended the length and breadth of her large New Orleans family. With her house destroyed and no job or savings, however, her chances of recreating that old reality are slim.

Read the New York Times story.

The end.
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Attorneys who won punitive damages verdict settle State Farm cases


By ANITA LEE
calee@sunherald.com

BILOXI --The attorneys who won a punitive damages verdict against State Farm Fire & Casualty Co. earlier this year have settled their remaining Hurricane Katrina lawsuits with the insurer.

"Obviously, the terms are confidential, but we were pleased to avoid costly and lengthy litigation which is in no one's interest," State Farm spokesman Fraser Engerman said. "This is another example of our goal to resolve matters quickly so that we can continue to assist with the rebuilding of the Coast."

Biloxi attorney Jack Denton told the Sun Herald he and attorney William C. Walker Jr. finalized the settlement Friday morning of 18 lawsuits filed against State Farm. Two of those cases were set for court later this month. While Denton could not discuss specifics of the settlement, he said the specter of punitive damages against the insurer played into the negotiations.

"We finally got a little relief," Denton said. "We're pleased that we were able to get our current State Farm cases resolved. What it indicates to me is that we have finally reached some middle ground with State Farm that has created a basis on which we can settle our State Farm cases."

More than 200 lawsuits are pending against the insurer in U.S. District Court. Evidence unearthed so far indicates State Farm denied payments for wind damage in coastal areas also subjected to tidal surge. State Farm relied on a clause in its policies that purports to say wind damage is not covered when water contributes.

Under pressure from state officials, and with an unfavorable court ruling early in the year, the insurer is now re-evaluating claims and offering wind damage payments to policyholders whose property the storm swept away, leaving only slabs or pilings. The insurer also will review the claims of other Coast policyholder who request it.

State Farm, the state and nation's largest property insurer, has about 35,000 customers in the three Coast counties. The company has paid more than $1.2 billion for hurricane damage statewide.

Its claims re-evaluation process is being overseen by Mississippi Insurance Commissioner George Dale, whose office is investigating how the insurer handled Katrina claims because of consumer complaints.

Denton said that he and Walker will continue to take State Farm cases and hopefully will be able to settle them without a trial, too. The law firm still has cases pending against Nationwide, USAA and Allstate.

Denton and Walker tried the first Katrina case against State Farm in January, winning policy limits for a Biloxi couple who lived near the waterfront. State Farm denied their claim without proving that water, excluded from coverage, caused the loss. At trial, State Farm conceded that wind could have caused some roof damage.

U.S. District Court Judge L.T. Senter Jr. awarded Norman and Genevieve Broussard policy limits, saying a jury decision was not needed because State Farm had failed to meet its burden of proof. The jury then awarded the Broussards $2.5 million in punitive damages, concluding State Farm had denied the claim in bad faith.

Senter later reduced that award to $ 1 million.

State Farm is appealing that case to the U.S. Fifth Circuit Court of Appeals.



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Drowning in Millions: State Farm, Allstate CEO Pay

 Drowning in Millions: State Farm, Allstate CEO’s Obscene Pay

Mississippi’s Insurance Commissioner George Dale said Katrina was "the worst natural disaster in U.S. history . . . and put an undue burden on insurance companies.” Oh yeah? Is that how Dale characterizes the obscene tens of millions dollars that State Farm and Allstate paid their CEOs in 2005 and 2006?

As Dale well knows, the company’s financials prove otherwise.

The Insurance Industry Institute pegged the industry's profits at $108 billion for 2005 and 2006. These profits are after companies paid taxes and Katrina claims they didn't pay. These profits are after companies paid out normal expenses such as employee income and benefits. These profits are after companies paid out extraordinary expenses such as their CEOs obscene compensation packages.

These execs denied legitimate policyholder claims stemming from Hurricane Katrina's wind damage. Company memos directed its employees to deny wind claims where ever so much as a drop of water was involved in the damage. [See Wind? Water? More like a Bunch of Hot Air! Also view these insurance documents on the website of Congressman Gene Taylor (D-MS). ]

Collectively the insurance companies sent our government's federal flood insurance program a $23 billion bill, the percent of which is fraudulent is yet unknown. For deliberately hurting Katrina survivors, these CEOs have been handsomely paid. In fact, I'd say that their pay has them drowning in millions. This year, State Farm increased the salary of its CEO by 82%.

"Chairman and Chief Executive Officer Ed Rust Jr. got a $5.26 million raise. He earned $11.66 million in 2006 with a base salary of $1.77 million and results-based bonus of $9.89 million, the statement said. Rust made $6.4 million in 2005 and $5.5 million in 2004." -- Insurance Journal

Photo on State Farm Website

Ed Liddy has been "[c]hairman of The Allstate Corporation since January 1999. Mr. Liddy previously served as Chief Executive Officer from January 1999 until December 2006 . . . .” Allstate’s SEC Records Photo by Business Week.

Forbes Magazine reported Liddy’s total compensation for 2006 to be $18 million, and his 5-year compensation total to be $70 million. In 2005, Liddy’s compensation total was $27 million.

When it comes to bloated salaries, these gentlemen are in good hands with their respective companies. All that money didn't buy them ethics, decency, or integrity though. Instead, they acted as really bad neighbors toward their Katrina area policyholders. As for George Dale, he is acting in accordance with his reputation as a bought and paid for political hack of the industry.

M. Dale, if you will kindly look in a mirror, you’ll find the undue burden staring you right in the eye.
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Wednesday, July 11, 2007

Katrina's Karmic Payback: Insurance Reform

This is the fifth in a series of five to help the Democratic Party, particularly its presidential hopefuls, to get the framework right, to broaden its lens through which it views Katrina, what’s stopping recovery, what will speed up a vibrant recovery, and how Katrina affords us the opportunity to transform the basic quality of life for all Americans.


We all know that small and large businesses are choking on skyrocketing health care costs. The other day, a friend of mine said that his tiny company just wrote out a $44,000 check to cover the annual costs of its seven employees and their families. The other employees are covered through the insurance benefits of their respective spouses. Without businesses covering the costs, however, families are often going without attending to their health care needs to the tune of 47 million in 2005, according to the Census Bureau. This is a national crisis.

These aren’t the only insurance costs that are hurting us. Worker’s comp costs are also skyrocketing and hurting businesses in their pocketbook.

What is less well tracked, however, is the national crisis of insuring our homes—the most valuable asset for most families. News reports inside Katrina Land have revealed rate increases or rate increase requests from 23 to 400%. Inside and out of this Katrina-ravaged region, companies are either jacking up their premiums or refusing to write new policies altogether.

In May of this year, CNN Money reported that Allstate “the largest home insurer in the United States, said it would no longer write new homeowner policies in California, marking another reduction in its property coverage nationwide. . . . The carrier recently announced it would no longer write new homeowner policies in Florida, Connecticut, Delaware and New Jersey and in certain counties in the Atlantic and Gulf Coast regions.” California is the fifth largest economy in the world and accounts for one-eighth of the U.S. economy. Yet, Allstate is closing shop.

Homeowners have one less company from which to purchase their much needed homeowner insurance.

In February of this year, State Farm quit writing new homeowner policies in Mississippi. Back in 2002, State Farm’s moratorium on writing new homeowner policies included “Oklahoma, Arkansas, Kansas, Louisiana, Missouri, Texas, California, Montana, Oregon, Washington, Idaho, Hawaii, Alaska, Maryland, West Virginia and North Carolina. The company ha[d] also restricted activity in Arizona, New Mexico, Colorado, Utah, Nevada and Wyoming.” Just like a good neighbor, right?

When State Farm stopped writing homeowner policies in Oklahoma in June of 2002, its “policies represented 27 percent of the homeowner insurance market“ in that state. That same year Allstate “implemented a 35.2 percent rate increase on new homeowner policies” for its Oklahoma customers. You know those homeowners felt they were in good hands.
Regarding its 2002 decision to stop writing new homeowner policies in Oklahoma, State Farm’s company’s spokeswoman said "These changes are not a short-term fix. It will take time for us to regain our profitability." Since the company is a private entity, it is not required to publish its financials.

What we DO know is some one is making money. The industry posted $108 billion in profits in 2005 and 2006. What we DO know is that insurance companies deliberately directed its workers not to provide benefits under a policyholders wind policy even when wind caused damage to the Katrina-ravaged homes and businesses. [See Wind? Water? More like a Bunch of Hot Air!]

What we DO know is that the National Oceanic and Atmospheric Administration has told us that “[p]opulations and built environments in coastal watersheds are growing rapidly, with 55 percent of the U.S. population already living within 50 miles of the coast.”



The Coastal Community Development Partnership brings local governments as they promote safer and smarter development along the coast.



What we DO know is that Congressman Gene Taylor (D-MS), who lost everything in Katrina and only recently settled with his insurance company who had originally offered him and his wife . . . not . . . one . . . penny, testified before a congressional committee stating, “In response to the fact that the insurance industry apparently no longer wants to cover people for wind damage in coastal America, or will not provide that coverage at a cost that is reasonable, I am asking you to consider legislation that will expand the National Flood Insurance Program to include all natural perils.”

Taylor has introduced the Multiple Perils Insurance Act of 2007, H.R. 920, which amends the National Flood Insurance Program to cover all natural perils. It is coming up for discussion in a few weeks at the same time the National Flood Insurance Program comes up for reauthorization. Taylor’s law will help tremendously.

Another major problem with the insurance industry is that it is only one of two industries exempt from the nation’s anti-trust laws. You know the laws that make it so you can’t do bid rigging and price fixing.

What we DO know is that the Senate’s Democratic Leaders have put together legislation to strip the insurance companies of its 62-year old exemption, and U.S. Senators Mary Landrieu (D-LA) and Senate Minority Leader Trent Lott (R-MS) are among its co-sponsors. This proposed law will finally make price-fixing behavior in the insurance industry illegal. The companion bill in the House is H.R. 1081.

What can WE do with all that we know?
The first thing we can do is to tell ourselves and each other that the time has come for us to end our propensity for political cynicism. Our knee-jerk cynicism grants us a momentary ego boost, but it has a decidedly detrimental impact to everyone including ourselves.

Clearing away our cynicism, however, allows us to recognize that rearranging the furniture as the building burns around us is, well, stupid. Its only real contribution is to paralyze us which prevents us from taking appropriate action.

However, clearing away our cynicism frees us up to be in a position to learn how to be politically savvy, smart, and sophisticated so that we can make our dreams come true inside the complex world of American politics. We do this one day at a time as we keep our eye on the prize and adjust our strategies and tactics as needed to achieve our goals.

Because we’re adults, we understand that some things take time, effort, and persistence.
“What being an adult means is knowing what you have to do and doing it, even though you may not feel like doing it.”

Robert T. KiyosakiRich
Dad’s Cashflow Quadrant

This definition applies to everything including politics. As we clear away our political cynicism, we will find a renewal of our spirits, our creativity, and our intellectual capitol all of which we need to be successful in any endeavor including political hell raising as we are inclined to do here at A.M. in the Morning!

Today’s Political Hell Raising Opportunities
Today, we can call and email our congressional representatives to request that they co-sponsor H.R.920, which is called the Multiple Peril Insurance Act of 2007.

In addition, let’s drown out the insurance industry’s opposition by calling and emailing our two U.S. Senators and our congressional representative to express our support to end the insurance industry exemption from laws that prohibit their ability to price fix, etc.

As usual, A.M. in the Morning! provides contact information and email letters as well as phone scripts and access to telephone numbers of your two U.S. Senators and congressional representative.

Thoughts on Katrina’s Bigger Picture
Katrina was a tragedy of epic proportions. The storm itself destroyed our Mississippi Gulf Coast. The levees that the U.S. Army Corps of Engineers had built failed to protect New Orleans. Clearly, shoring up those levees in a world class way is paramount. Through Katrina, we have learned that 28 additional states place Americans in New Orleans-like danger in 120 locations throughout the country. Each of these is unacceptable.

Nationally, we must commit resources to invest in world class levees throughout our nation to ensure that we protect our nation’s families, businesses, and communities against the danger of repeating the man-made disaster in New Orleans.

Committing to world class levees throughout our country infuses our own economy in ways that have been absent ever since Bush and Cheney moved into our White House six and a half years ago. With a renewed focus on math and real science, we can also breathe new life into all facets of our educational system. Finally, implementing a world class levee system across the country can further assist our commitment to environmental sanity.

In the wake of Katrina’s devastation, insurance companies fraudulently denied the claims of legitimate policyholders who sought payment on their wind policies. The result of the insurance industry’s deliberate denials of these claims has been to create a mounting financial crisis throughout the Katrina-ravaged region. Since the insurance industry is begging off of protecting America’s homes against wind damage just as it did with flood coverage in the 60s, we must expand our nation’s Federal Flood Insurance Program to cover all natural perils.

However, this is part of an ever expanding crisis with our insurance industry. We now add to skyrocketing health care and worker’s compensation costs, the costs of protecting the single asset that is central to how many of us define the American Dream: our homes. The time has come for insurance reform.

To be competitive in the world, our businesses need insurance reform. To run efficiently while providing all the services and programs we expect from our government, our towns, cities, states and federal governments need insurance reform. To protect our health and our homes, our families need this. The insurance execs can think of it as paying off Katrina’s Karmic debt. Anyway you slice it, insurance reform . . . it’s good for America.



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Tuesday, July 10, 2007

Were insurers crooked bookies?


Letter to the Editor

Reading comments from some observers of the post-Katrina insurance drama can become downright painful. Trying to characterize the Scruggs Katrina group as Morris Bart attorneys would be laughable if it wasn't so sad.

State Farm and Nationwide committed no less than fraud against thousands of legitimate policyholders. I would encourage anyone to drive to Bay St. Louis and observe how, after nearly two years, an overwhelming majority of the beachfront homes and surrounding areas remain empty lots.I deliberately mention the beachfront homes, because it automatically eliminates the ignorant comments I have read by those who suggested FEMA owed nothing to the lower-income residents who should have 'fended' for themselves.

They read the hype about "over-payments" and fraud cases and allow this to disguise how inefficient and unresponsive that agency became after one of the most devastating natural disasters in U.S. history.These beachfront homeowners are an important demographic, because they illustrate the sad reality that honest, legitimate paying insurance customers were worse off than renters once Katrina's storm surge had passed.

Once these insurance companies lost the great Katrina bet, they operated like crooked bookies and effectively hid behind the ambiguous language within their policies to defraud their clients.
I would have no problem paying my attorneys whatever percentage they wanted to go after that insurance company. I encourage you to share your outrage with the residents on the coastwho will still be living in more than 20,000 FEMA trailers on the two-year anniversary of Katrina on August 29. You can be the guests of honor at their celebration.

Dominic Haberman
Hattiesburg

Letter to the editor
Hattiesburg American
Hattiesburg, MS
(1.5 hours from Bay St. Louis, going northeast
Katrina hit Hattiesburg, too.)

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Katrina’s Bigger Picture

This is the fourth in a series of five to help the Democratic Party, particularly its presidential hopefuls, to get the framework right, to broaden its lens through which it views Katrina, what’s stopping recovery, what will speed up a vibrant recovery, and how Katrina affords us the opportunity to transform the basic quality of life for all Americans.

Clearly, the Democratic debate on PBS hit a bit of a raw nerve with me. The debate question and candidates’ answers reflected the framework for our national discussion, which has been too narrow, too tiny when discussing who Hurricane Katrina impacted and what the impact was, as well as the solutions offered. So let’s put on a lens through which we can see Katrina’s bigger picture.

First, Hurricane Katrina itself destroyed the Mississippi Gulf Coast. However, the New Orleans disaster was another matter. As so aptly stated on Levees.org, “New Orleans was destroyed primarily by bad engineering and not bad weather.

Moreover, “[r]esponsibility for the levee failures on August 29, 2005, in New Orleans rests squarely on the U.S. Army Corps of Engineers and on Congress. This means that the federal government bears primary responsibility for the flooding of metro New Orleans and the destruction of hundreds of thousands of homes and livelihoods.

When Hurricane Katrina breached the levees in New Orleans, the floods indiscriminately drenched Republican and Democratic, wealthy, middle class, and low income homes and neighborhoods as well as every ethnic group in this international city. However, had the U.S. Army Corps of Engineers carried out its responsibilities, these New Orleans residents would have been spared this horrendous flood. To carry out their responsibilities, of course, requires financial resources as well as solid policy based on sound engineering and environmental principles.

The Washington Post reported

Bush repeatedly requested less money for programs to guard against catastrophic storms in New Orleans than many federal and state officials requested.
When disclosures like this came out in Katrina’s immediate aftermath, the Army Corps of Engineers defended the Bush Administration. "It was not a funding issue," said Carol Sanders, the chief spokeswoman for the corps. "It's an issue of the design capabilities of these projects." What a disingenuous though unsurprising answer since the Corps “worked closely with White House officials” on the responses to these tough, important questions regarding the Bush Administration’s responsibility in deliberately cutting the corps’ budget.

The Washington Post article continued.

Local and federal officials have long warned that funding shortages in the New Orleans area would have consequences. They sounded the alarm as recently as last summer [meaning 2005] when they complained that federal budget cuts had stopped major work on New Orleans east bank hurricane levees for the first time in 37 years. Al Naomi, the senior project manager for the Army Corps of Engineers, reported at the time that he was getting only half as much money as he needed and that much of the funding was being used to pay contractors for past work.

"When levees are below grade, as ours are in many spots right now, they're more vulnerable to waves pouring over them and degrading them," Naomi told the Times-Picayune of New Orleans. Walter Maestri, the emergency management chief in Jefferson Parish (county), at the time linked the funding shortfall to the cost of the Iraq war. "It appears that the money has been moved in the president's budget to handle homeland security and the war in Iraq, and I suppose that's the price we pay," he told the newspaper. Maestri added, "For us, this levee is part and parcel of homeland security because it helps protect us 365 days a year."
Indeed, if this city had had the kind of protection that the Netherlands has, my family members who live in the Big Easy would have had it easy after the storm. Here are pictures that demonstrate the difference between the levees in New Orleans and those in the Netherlands.

New Orleans Levees
Photos by National Geographic.

The repaired Industrial Canal levee wall in New Orleans' Lower Ninth Ward is green with new turf in July 2006 (top). The U.S. government says the city's levees are back at pre-Katrina conditions.A school bus sat stranded near a breach in the same levee on September 12, 2005 (bottom). The embankments were built to endure Category Three storms, yet several crumbled after Katrina's Category Three assault, perhaps as a result of poor design and construction.

Mario Tama / Getty Images file
Workers rebuild the levee along New
Orleans' Industrial Canal in the Lower
Ninth Ward


Netherlands Levees











Photo Credit: By Molly Moore -- The Washington Post Photo
Ted Sluyter, who organizes school tours of the Dutch sea defense system, says the calamitous 1953 flood bears clear parallels to the New Orleans disaster.

U.S. Senator Mary Landrieu (D-LA) led a 40 member delegation from Louisiana to the Netherlands to tour the world's largest levee system.

"When the unprecedented disasters of Hurricanes Katrina and Rita, and the subsequent levee breaks struck Louisiana, the Netherlands was one of the first nations to come forward to offer their support," Sen. Landrieu said. "The Dutch know all too well the challenges we face, having lived for centuries under the threat from similar vulnerability themselves."
Protecting a world class city like New Orleans with a world class levee system like the Dutch have is what we need to do to protect this national treasure. A Netherlands-type of levee system will protect residents, neighborhoods, and businesses in New Orleans. That’s what homeland security is about. It is the smart, savvy, and environmentally sound thing to do. Plenty of good jobs and spin-off business will come from investing in this.

The wider view is that our nation will once again be demonstrating a commitment to investing in the best here at home for our own people, using information rooted in scientific fact.

The wider view still is something I learned from Levees.org. Twenty eight (28) states have at least 120 levees that are vulnerable to the same catastrophic failure New Orleans experienced. One hundred and twenty potential government-created environmental and economic disasters?! Holy Moly!

The spin off benefits of this kind of a levee system will be fantastic. What an awesome boon to our educational system alone with a renewed national commitment to math, science, and technology. Remember the seven-year old African American girl whom I had met at the Bay St. Louis library? She had proudly shared with me that she gets “A’s in math and science!

With these kinds of projects in 120 areas across the country, little girls and boys in the surrounding areas would grow up with dreams of being engineers and scientists who work at world class facilities just down the street. This is a way we build great communities in which families can live, work, and play generation after generation after generation. What a concept, huh?!

Through the lens of the Katrina travesty, we have learned that we need to reform our national priorities to invest in world class levees in over half the states in our nation. We have also learned of another national problem requiring a national solution. Insurance carriers are jacking up premium costs or not covering homeowners here in Katrina Land . . . and all across the country.



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Monday, July 09, 2007

Hurricane center chief reassigned amid criticism from staff

THE ASSOCIATED PRESS

MIAMI --The new director of the National Hurricane Center was temporarily reassigned Monday, amid calls from about half his staff that he be ousted for undermining the public's confidence in the center's forecasts.

Director Bill Proenza will be replaced by Deputy Director Ed Rappaport, said center spokesman Dennis Feltgen.

Proenza replaced veteran center head Max Mayfield in January. More than 20 of Proenza's nearly 50 employees had urged his dismissal, claiming he damaged public confidence in their forecasts by repeatedly and publicly criticizing the federal government for not providing enough funding, particularly to replace an aging weather satellite.

Staff members say Proenza misrepresented the problem with the satellite and they were worried the consequences would actually hurt their forecasting abilities.

Reached Monday, Rappaport said he would not comment on his appointment. A spokesman for the National Oceanic and Atmospheric Administration, which oversees the center, did not immediately return a call seeking comment. ###

Published on July 9, 2007 in Sun Herald, Los Angeles Times, and Houston Chronicle.

See related blog entry: White House Muzzling Hurricane Center Director




National Hurricane Center Director Bill Proenza has been the loudest voice calling for a replacement of an aging satellite.




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