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

Wednesday, September 26, 2007

Breaking News: American Bankers Association Supports Muliple Peril Insurance Policy (H.R. 3121)

From: ABA [mailto:govtrelations@aba.com]
Sent: Wednesday, September 26, 2007 11:22 AM
To: Martin, Brian (Congressman Gene Taylor's Policy Director)
Subject: Support for H.R. 3121, the Flood Insurance Reform and Modernization Act

Date: September 26, 2007
To: Members of the U.S. House of Representatives

From: Floyd Stoner, Executive Director, Congressional Relations & Public Policy, ABA

Re: Support for H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007

I am writing on behalf of the members of the American Bankers Association (ABA) to express our support for H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007, scheduled to be considered by the full House later this week.

Since 1968, nearly 20,000 communities across the United States and its territories have participated in the National Flood Insurance Program (NFIP) by adopting and enforcing floodplain management ordinances to reduce future flood damage. In exchange, the NFIP makes federally backed flood insurance available to homeowners, renters, and business owners in these communities.

Losses from three large hurricanes (Katrina, Rita, and Wilma) in 2005 have left the NFIP more than $23 billion in debt to the Treasury. There is no way that the NFIP can reasonably repay this debt and provide payment for future losses under the current rate structure. The likelihood of additional flood events and resulting claims against the program make reforms vital.

This legislation would require the Federal Emergency Management Agency (FEMA) to update the flood maps, and it would provide a phase-in of actuarial rates for commercial properties and non-primary residences. ABA supports these efforts as being necessary to sustain the program over the long term.

H.R. 3121 also would increase the penalties for non-compliance in placing flood insurance, from $350 per violation to $2000 per violation. We are pleased that the legislation would provide a "safe harbor" for an institution which is in non-compliance due to circumstances beyond its control (such as outdated mapping by FEMA). We also are pleased that the legislation would provide institutions with an opportunity to correct non-compliance before a penalty is assessed and place a reasonable limit for total penalties per institution/per year.

We urge you to support this important legislation.

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Bush, Barbour’s Katrina Housing Plans Smell Fishy

by Ana Maria

Just over a week ago, my tiny hometown learned of a secret Bush government plan to “wall and haul” the place. In conjunction with Mississippi’s Republican Governor Haley Barbour, the U.S. Corps of Engineers has been plotting and scheming to erect a 40-foot seawall along the beach and to buy up private property it deemed in the flood zone. This birthed my “wall and haul” phrase. You know, wall us up, haul us out.

My parents’ home has never been in a designated flood zone. Katrina is the only time our home had ever gotten so much as a drop of water. Now Bush’s government wants to buy up the family home and the surrounding area. We’re several miles from the Jordan River or the beach. And where will my mother and many others go? She’s lived in this town since 1953. That’s 54 years. How do you replace the safety and comfort, security, and friendships built up over that many decades? You don’t.

Allegedly, the property purchase, including my own mother’s home where she has lived for the last 45 years, is voluntary.

Bush’s Corps of Engineers and its willing accomplices in the Barbour government say the property purchase is voluntary. To believe this requires them to have credibility, which is nowhere to be found.

As I look around at several of Bush and Barbour’s different housing plans, this appears more of a shell game being played with American families and businesses and the money needed to rebuild our homes, our businesses, our communities, and our lives.

Some two years since Katrina demolished the area’s homes and businesses, we still have a housing crisis of epidemic proportions.

". . . the Institute for Southern Studies documented in [its] recent report Blueprint for Gulf Renewal, there's still a serious post-Katrina housing crisis on the Mississippi Gulf Coast. Homeowners found the [Mississippi Development Authority]'s grant application process to be difficult and time-consuming, and many are still waiting for checks. In the meantime, there are few affordable rental units available in the region, another barrier facing internally displaced persons trying to exercise their right of return.”
Barbour To Skim Off Housing Money
Rather than cutting out the bureaucratic BS to get the appropriated funding to those who need it here on Mississippi Gulf Coast, Governor Haley Barbour is abandoning his responsibilities to blockade our state’s road home. Barbour, Bush, and their buddies in Big Insurance are Allies in Abandonment Alley.

Barbour proposed diverting $600 million from Katrina funds dedicated for low-income housing here on the Mississippi Gulf Coast. Barbour wants to use housing funds to rebuild the Port of Gulfport.

As if we’ve got all the housing we can stand down here and boy, oh boy, we better find something to do with that $600 million or Bush will take it back to pay for the better part of a single day’s worth of what it’s costing this nation for Bush’s unnecessary ‘adventure’ in Iraq—using Mississippi military men and women, I might add.

As I look around at the areas with which I’m personally most familiar—a good 50 mile stretch along beach front properties along the state’s Gulf Coast from Waveland straight through Biloxi, I’m not seeing much rebuilding of those beautiful old homes . . . or the beach front businesses for that matter.

See, if those folks aren’t building, that’s an important indicator that the financing isn’t here for many other things either. With the financing comes the construction jobs, which would be in abundance—but only if the financing were here. With construction jobs would come all manner of businesses to provide the goods and services those workers and their families would need. Businesses from plumbing to appliance to office supply stores to support the construction of those homes and business buildings. Businesses like toy stores and movie theaters, bakeries and department stores that families and communities need.

Of course, from architects to painters and electricians to roofers, these construction industry workers would need places for their families to live. Their children would need schools to attend, preferably with running water available like the rest of the U.S.

Alas, housing along the Mississippi Gulf Coast is scarce whether affordable or not. It just doesn’t exist much less in abundance, and what is available isn’t at the pre-Katrina prices. Everything is more expensive, though the wages have not risen.

Here’s the thing, if the solidly middle class cannot afford to rebuild their homes and businesses, that is a strong indicator that neither can those not yet in the middle class economic bracket. Purely and simply, the reason for this economic development stagnation is the lack of funding, money, moolah.

So that $600 million that Barbour wants to divert from housing? What a joke! We could sure use that money to build housing for folks to live in, move out of their FEMA trailers, quit bunking with family and friends, and move back here from where ever they may be residing outside of the area. You know, use it to help those for whom it was intended to help.

Breaking Down Barbour’s Housing Dollars
The Mississippi Center for Justice wrote a startling analysis of Barbour use of our tax money that is supposed to be alleviating our post-Katrina housing crunch.
Mississippi’s Katrina recovery programs have been characterized by disregard for the
needs of its most vulnerable citizens. Over $3 billion of the $5.4 billion Congress gave
Mississippi has been granted waivers from the requirement to serve the needs of low
and moderate income residents. Only $1 billion has been devoted to programs that
serve these same residents. (1) Two years later, less than $100 million from those
programs has been paid out. (2)

With over 17,000 households (close to 50,000 persons) still in FEMA trailers and others
doubled up with relatives or friends, Mississippi’s housing recovery is far from complete
two years after Hurricane Katrina. (3) Last week, however, Governor Haley Barbour
proposed to divert $600 million of housing recovery funds to pump into the expansion of
the State Port at Gulfport, a commercial maritime harbor that earned half its revenue
from casino leases prior to the storm. (4) This makes a mockery of the Governor’s
Commission’s recommendation to place a priority in every housing program upon
serving the needs of lower income storm victims. (5)
[Click here for endnotes.]
Only $100 million? Based on the totality of what had been appropriated originally, $100 million is less than 2%!!?# That is poppycock. And this is yet another great example of a failure of leadership aggressively pursuing every avenue possible to bring about a quick and vibrant recovery along the Mississippi Gulf Coast. Are the White House, Big Insurance, and Barbour deliberately starving us all so that they can turn this beach front property into their personal financial playground years down the road?!

The picture seems to be coming in clearly when it comes to housing and rebuilding the Mississippi Gulf Coast, something sure smells fishy, and it isn’t coming from the Gulf.

© 2007 Ana Maria Rosato. All rights reserved.
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Katrina victims ask Shelby for help

Housing bill mainly aimed at Louisiana
Wednesday, September 26, 2007
By SEAN REILLY
Washington Bureau


WASHINGTON -- After huddling with frustrated south Mobile County residents Tuesday morning, U.S. Sen. Richard Shelby pressed federal officials to tackle local housing needs left over from Hurricane Katrina, but did not endorse residents' plea for up to $400 million in additional aid.

Rather than provide more money, lawmakers may need to make sure that funding already proposed is "allocated fairly," Shelby, R-Tuscaloosa, said after a Senate banking committee hearing on a bill aimed at assuring that affordable housing lost to Katrina is replaced. Shelby is the panel's top Republican.

The bill is largely geared toward Louisiana. Before the hearing, Shelby heard privately from the group of some 11 activists and residents of Coden and other unincorporated parts of the county.

About 2,000 people from those areas are still living in government-furnished campers, a year after environmental tests registered dangerous level of indoor formaldehyde, Zack Carter, an organizer with the Montgomery-based citizens' group, Alabama Arise, said. But the senator would not commit to trying to amend the recovery act by adding $200 million to $400 million, according to Carter.

"It wasn't a 'no,' so that's something," Carter said. Instead, Carter said, a second meeting is planned this Friday. Another option would be to add the money to a supplemental spending bill, he said.

During the hearing, Shelby did prod administrators with the U.S. Department of Housing and Urban Development, or HUD, on whether they had done enough for the south end of the county. "A lot of people in those areas that were heavily impacted -- their needs have not been addressed," he said.

In response, Robert Duncan, a HUD senior project manager, said the state has been allotted about $24 million for housing needs. Of that amount, only $4 million has so far been spent, Duncan said.

That disclosure appeared to surprise Shelby, who said afterward that he would follow up. Even if all available money is used, "it's going to take much more than what is there at this point," said Stephenie Bosarge, a Coden bookkeeper.

As the Press-Register has previously reported, however, the major bottleneck is at the county level, where 1,166 applications for aid are still pending. County officials hope to begin getting rebuilding help to people by year's end, Annette McGrady, a consultant working on the issue, said Tuesday.

The banking committee has not announced a date to proceed with the bill. The measure's lead sponsor is the panel's chairman, U.S. Sen. Christopher Dodd, D-Conn. Dodd, who is running for president, did not attend Tuesday's hearing.

In an e-mail, spokesman Marvin Fast attributed the senator's absence to an unspecified scheduling conflict. Dodd "intends to continue to work to advance this legislation ... ," Fast said.

Alabama Press-Register originally published this article here.
© 2007 Press-Register
© 2007 al.com All Rights Reserved.


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Tuesday, September 25, 2007

American Soldiers: Caught in the Crosshairs of Iraq and Katrina

by Ana Maria

Regardless of our personal perspective on the Iraq occupation, Americans universally support the soldiers, want them to be safe, and want their return home to be joyous and welcoming. For those soldiers inside Mississippi, Alabama and Louisiana whose homes Hurricane Katrina demolished or substantially destroyed, they face the double whammy of fighting in Iraq while their families are here fighting Big Insurance who often refuses to pay for wind-related damages for which premiums have been faithfully paid.

Today’s piece is devoted to those homeowners and business owners who are also members of our military, members who George W. Bush sent to his war in Iraq and whose families have been through Katrina and the insurance insanity that has befallen them since the storm’s 135 mph winds subsided.

After Katrina, many an insurance corporate titan implemented aggressive claims adjustment policies that ended up guaranteeing the financial ruin of American homeowners and business owners. Along with police officers, firefighters, teachers, nurses caught in this nightmare were our soldiers in Iraq and Afghanistan.

George W. Bush could have used the power of the bully pulpit to twist the arms of his CEO buddies in the insurance industry to do the morally correct thing and pay on the wind-related damages to every one of its policyholders’ homes and businesses be they soldiers, retired chief petty officers, school teachers, or police officers. However, he has not.

Instead, George W. Bush has failed to protect American soldiers from the ravages of the policies that his Big Insurance buddies implemented, policies that failed to deliver on the wind policies included in the homeowner policies these soldiers had for their homes.

What I’d like to hear from a president that cared is something like the following.

My fellow Americans, I come before you today to express my enormous distress at the pain and suffering that has befallen many families and businesses inside the Katrina-ravaged region. Upon learning of the policies and procedures that Big Insurance has implemented that guts the financial security upon which these families and businesses depend to get back on their feet quickly and return to their lives, I am putting the full weight of the White House to back a legislative initiative that will protect America’s financial security for every family and business: the Multiple Peril Insurance policy.

This consolidates into one insurance policy protection for both flood and wind. Nowhere in this great nation of ours can we purchase such a policy. Nowhere. In the 60’s, private insurance companies chose to get out of the flood insurance business. Given this void, Congress passed the flood insurance act to protect the financial security of American families and businesses from flood damage. Since 1968, American families have had this protection.

Today, Big Insurance is demonstrating a callous disregard to Americans everywhere—including our nation’s soldiers who are protecting this country. These soldiers voluntarily give up their freedom, liberty, and sometimes their lives in service to this country.
Rather than looking out for the financial security of policyholders, Big Insurance is looking out for its own financial security and doing so wrongly on the backs of its policyholders--policyholders who are teachers and doctors, retired seniors and American soldiers. These soldiers’ selflessness for the love of country should be the model for all citizens. They give their lives to protect us. We must do what we must to protect them. In so doing, we also protect the rest of America.

Private insurance is effectively no longer providing wind coverage for American families and businesses. Congress is again taking the bold step to provide this needed financial security. Mississippi Congressman Gene Taylor, who lost his home in Katrina and who had to sue his insurance company to get a settlement, has drafted this good bill. The White House is putting its full weight behind the measure because it protects America’s home and business owners.

Thank you.

Wouldn’t that be something to hear?! To know that we had a White House that cared about the hundreds of millions of little people that make up this nation whether we are teachers or nurses or active or retired military officers?

Well, having a White House that cares about the hundreds of millions of little people that make up this nation is something we can work toward. Today, we have the great opportunity to help take out of the insurance crosshairs both active and retired military. Simultaneously, we will be helping the rest of the Katrina-ravaged residents along the Louisiana-Mississippi-Alabama Gulf Coast AND the rest of the nation’s 55% that live within 50 miles of the nation’s beautiful coastline.

Incorporating multiple peril coverage into the federal flood insurance policy is within reach of passing the entire House of Representatives when the legislation goes for a vote this Thursday, September 27th.

Today’s political hell raising activity is specifically dedicated to helping to ease the pain of every soldier impacted by both Iraq and Katrina. Supporting and protecting the troops means providing the armor to keep them safe overseas AND providing these soldiers with the insurance armor that will help keep their families protected against the greedy winds of Big Insurance. ;)

Soooooo, let’s call and email our congressional representatives. Yes, if you’ve already called, then email. If you’ve already emailed, then call. The more, the merrier. On that note, contact two other people and convince them to do the same. Again, the more, the merrier.

Ending what many of us term a nightmare in Iraq also means ending the nightmare that is for many a soldier the ongoing nightmare that is Big Insurance. For soldiers, being caught in the cross hairs of Iraq and Katrina can begin to end today with calls and emails to pass this important legislation.


© 2007 Ana Maria Rosato. All rights reserved.
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Insurance bill up for vote

Taylor likes chances of proposal to add wind to flood policies

Posted on Tue, Sep. 25, 2007
By MARIA RECIO
SUN HERALD WASHINGTON BUREAU


WASHINGTON --
The House is expected to vote Thursday on expanding federal flood insurance to include wind damage, a landmark change brought on by the insurance industry response to Hurricane Katrina.

Rep. Gene Taylor, D-Bay St. Louis, who lost his home in Katrina, pushed for the "multi-peril" provision to the Flood Insurance Reform and Modernization Act of 2007, after seeing constituents get little or no payments for privately insured wind damage and full coverage from the federal flood program. Taylor sued his insurer and settled earlier this year.

After pushing a bill for over two years, an invigorated Taylor is looking forward to the upcoming vote. "I'm excited about it," he said. "I'm not taking anything for granted. We've got almost every Democrat and some Republicans on the Gulf Coast from Louisiana, Mississippi, Alabama and Florida. It should be the necessary margin."

The legislation has a powerful advocate in the House: Speaker Nancy Pelosi, D-Calif., who made the issue a personal promise to the South Mississippi communities in visits to the region on Katrina anniversaries in August 2006 and last month.

Having the speaker's support "is huge," said Taylor. "She's been an incredibly huge help."

Pelosi lobbied or "whipped" Democrats when the bill was before the House Financial Services Committee in July. "She went to wavering Democrats," said Taylor, "and that's what it's going to take."

Pelosi is expected to push the issue again Wednesday at the weekly Democratic Caucus meeting.

"The bill has widespread support," said Steven Adamske, spokesman for the House Financial Services Committee. "We feel good about where this bill is positioned."

Under the bill, approved by the financial services committee 38-29 in July, policyholders of the flood insurance program would be able to purchase wind insurance policies, although wind coverage would be not available as a stand-alone policy.

The multiple-peril residential policy limit would be set at $500,000 for the structure and $150,000 for contents. The bill increases the maximum coverage for flood insurance policies from $250,000 to $335,000 for residences. The program would be paid for from actuarially determined premiums.

Opponents of the bill, including insurers and some public interest groups, say that the flood insurance program is essentially bankrupt and that adding another liability would eventually hit the taxpayers. The flood insurance program had to borrow $17.5 billion more than it took in because of Katrina and Rita claims.

"We don't think this is the time to expand the flood insurance program, " said Don Griffin, a vice president of the Property Casualty Insurers Association of America. "You don't know how many people will buy the program, so you don't know how to price it."

Dennis Kelly, spokesman for the American Insurance Association, said, "We do not want to see any mechanisms that displace the private market."

But Taylor and other bill supporters point to the role the states have had to take, creating so-called "wind pools" in states such as Mississippi and Florida to provide coverage to coastal residents after insurers stopped writing policies.

Taylor said he is bracing for an insurance industry-backed battle on the House floor. "I expect a very contentious fight," he said.

Flood Insurance Reform and Modernization Act of 2007
Here are the key features of H.R. 3121:

• Increases the amount FEMA can raise policy rates in any given year from 10 percent to 15 percent.

• Extends multiple-peril policies for wind damage where local governments agree to adopt and enforce building codes and standards designed to minimize wind damage.

• Allows any community participating in the flood insurance program to opt in to the multiple-peril option. The multiple-peril residential-policy limit is $500,000 for the structure and $150,000 for contents. Nonresidential properties could be covered to $1 million for structure and $750,000 for contents and business interruption.

• Increases the maximum coverage limits for flood insurance policies. New coverage limits would be $335,000 for residences, $135,000 for residential contents, and $670,000 for businesses and churches.

• Phases in actuarial rates for vacation homes and nonresidential properties beginning Jan. 1, 2011.

HOUSE FINANCIAL SERVICES COMMITTEE


Type the rest of the blog here.
© 2007 Ana Maria Rosato. All rights reserved.
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Federal help sought for coastal insurance problem

Tuesday, September 25, 2007
By AMBER CRAIG
The Mississippi Press


MOBILE -- Insurance companies seemed to agree Monday that coastal insurance issues will need federal intervention, either by oversight or funding, before they are solved.

Insurance regulators testified before a panel of insurance commissioners from Mississippi, Louisiana, Alabama, Florida, South Carolina, Arkansas and the Virgin Islands at a public hearing held by the National Association for Insurance Commissioners to address issues of instability in the market after Hurricane Katrina.

Representatives from Allstate, State Farm and Travelers insurance companies and Lloyds, Guy Carpenter and RenaissanceRe reinsurance companies testified at the four-hour meeting held at the Battle House Renaissance Hotel in Mobile, Ala.

Insurers expressed concern about over-exposure to risk that has led companies to scale back coverage, raise rates and cancel or not renew policies since the storm two years ago.

Alabama Commissioner Walter Bell, president of the national association, said he noticed the companies' proposals all included a major role for the federal government to play.

"They all have a tremendous amount of federal involvement, and that's coming from three large insurance companies," Bell said.

After the three insurance companies testified, Mississippi Insurance Commissioner George Dale said that although he has never been in favor of any federal involvement, there might be room for it to become involved in a limited way.

David Hill, vice president and regional general counsel for State Farm, proposed an adoption of statewide building codes, more accountability from homeowners who live in high risk areas and a modernization of the federal flood program that would prevent people from unknowingly being underinsured.

"For those who had flood insurance, many found that the amount of coverage was not sufficient to cover their losses," Hill said.

Hill also said vulnerable states should start catastrophe funds and federal backstop funds could provide "pre-emptive" funding.

The primary component of a proposal from Travelers is the creation of a Coastal Hurricane Zone, covering the lower two counties or parishes from Eastern Texas to Maine. Those areas that "share the same kind of risk" could have similar insurance rates, adjusted based on actual long-term wind exposure, said John Milette with Travelers.

Milette said the company realized that this kind of plan would be difficult for some people, but said help could be offered through subsidies and tax credits funded by a tax surcharge.

"We do recognize that for some folks it'll be tough," Milette said. "It'll be tough to make that transition."

Milette said his company would not to see the federal government regulate and oversee wind overwriting by private insurers.

Edward T. Collins, managing counsel for Allstate, testified representing Protecting America, a coalition of companies promoting more state and federal backstop funds for catastrophes and stronger mitigation and prevention programs. Allstate is a coalition member.

Collins said the private sector can deliver quickly, but has insufficient capacity to deal with another Katrina-sized catastrophe, especially because more people are moving to high-risk areas. There is a growing gap between the amount of risk and the amount of protection available, Collins said.

"The risk is rising and the level of protection is declining," Collins said.

Insurance commissioners, however, agreed overall that the private sector can do the job more effectively than the federal government alone.

"I don't believe that government will ever be able to do this as well as private entities," said Scott Richardson, insurance director for South Carolina.

One plan mentioned several times during the meeting relies heavily on the federal government. H.R. 3121, the Flood Insurance Reform and Modernization Act, which includes the text of Rep. Gene Taylor's Multiple Peril Insurance Act, is expected to be considered by the full House some time this week.

Alabama Rep. Jo Bonner, a co-sponsor of that bill, told the panel that when Taylor asked for his support, "I didn't hesitate to do so."

Reporter Amber Craig can be reached at acraig@themississippipress.com or (228) 934-1428.

Copyright 2007 gulflive.com. All Rights Reserved.

Mississippi Press published original article on September 25, 2007.

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Monday, September 24, 2007

Buyout plan startles residents, businesses

By J.R. WELSH
baybureau@aol.com
Posted on Fri, Sep. 21, 2007


BAY ST. LOUIS -- Reaction was swift this week to a plan announced by the federal government to buy thousands of acres of hurricane-vulnerable land from private owners as a storm-damage abatement measure.

On Monday a standing-room-only crowd of residents first heard about the proposed buyout from officials of the Army Corps of Engineers and the Mississippi Department of Marine Resources. Almost immediately, a resolution by the business community fluttered its way out of the Hancock County Chamber of Commerce and was endorsed by the Bay St. Louis City Council.

Council members also announced their intent to craft a resolution of their own, but decided to take time to work on the language. Hancock County Board of Supervisors President Rocky Pullman said Thursday his board has not discussed passing a related resolution.

The chamber's three-page resolution essentially asks the state and federal agencies to work with the business community and local governmental bodies before proceeding further with the Mississippi Coastal Improvements Program. The DMR and corps admitted at the public meeting they had been working on the plan for the better part of two years, but have solicited little public input.

The MSCIP is an enormous plan that, if enacted and funded by Congress, could contain as much as $10 billion worth of projects that would affect all three coastal Mississippi counties. A government buyout of as much as 30,000 acres Coastwide would apparently be among the first components.

In the Bay St. Louis area, the corps has targeted all of Shoreline Park and much of Cedar Point for a buyout. Both areas were hit hard by Hurricane Katrina, but property owners are rebuilding. Hollywood Casino also is located in the buyout area.

Across the Bay of St. Louis, the corps wants to buy most of Henderson Point and a swath of land in northern Pass Christian Isles.

Although a top DMR official promised property buyouts would not be mandatory, there has been widespread skepticism. Residents are reacting warily to claims from government agencies that conducted such large-scale planning behind closed doors for so long.

The chamber's resolution has 14 "whereas" clauses before getting to the resolution point. It asks that the corps and DMR "publicly make clear that any future structural and/or non-structural improvement plans would only include those that are designated as appropriate through the City of Bay St. Louis, City of Waveland and Hancock County comprehensive plans."

Tish Williams, executive director of the Chamber of Commerce, said such an action would hopefully quell economic fears created by the announcement of the coastal-improvement plan. She said developers have complained the prospect of such a huge property buyout is causing investors to have second thoughts.

"News of these models here created uncertainty in the marketplace," Williams said. "What if the casino were to take a buyout? Nine hundred jobs would be lost."

Williams said the chamber hopes to see the corps and DMR consult local business and government as the coastal-improvement plan moves forward. But she differed with an offer from DMR Executive Director Bill Walker to drop Hancock County from the plan altogether.

It remains unclear whether Walker, as head of a state agency, would have the authority to significantly alter a federal program.

"The business community believes that dropping Hancock County from the MSCIP is not an option," she said. "We don't want to be dropped from the program. We want to be part of the process."

© 2007 Sun Herald. All Rights Reserved.

The Sun Herald published the original article on September 21, 2007.

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Important Katrina Vote to Help Gulf Coast Recovery

by Ana Maria

“These people don’t necessarily need a good psychiatrist. They need a good contractor or someone to fix the ‘Road Home’ program and good leadership.”
Dr. Elmore Rigamer, psychiatrist
Catholic Charities of New Orleans
Want to help the Katrina survivors in Louisiana, Mississippi, and Alabama? Great! This is it. The week we’ve been waiting for. Just got word that the House of Representatives is anticipating a floor vote on the Multiple Peril Insurance Reform package that Gulf Coast Congressman Gene Taylor (D-MS) sponsored. This is where the rubber meets the road. The bill is H.R. 3121, and at the end of this piece will be a link to a sample email letter and phone script and an easy way to find your congressional representative’s email form and phone number.

From New York to California, insurance companies have been jacking up our policy premiums, denying legitimate claims, dropping coverage, and choosing not to write policies for new customers. Big Insurance policy scams place at risk the financial security that upon which American families and businesses depend when we need it the most.

Today, we can help to protect our financial security through giving Big Insurance notice that their gig is up. We're putting our financial security in good hands, our own.

In a riveting expose titled Home Insurers' Secret Tactics Cheat Fire Victims, Hike Profits, Bloomberg News reported
“Insurers often pay 30-60 percent of the cost of rebuilding a damaged home -- even when carriers assure homeowners they're fully covered, thousands of complaints with state insurance departments and civil court cases show.”

Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared -- even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history.

Highest-Ever Profits

Property-casualty insurers, which cover damage to homes and cars, reported their highest-ever profit of $73 billion last year, up 49 percent from $49 billion in 2005, according to Highline Data LLC, a Cambridge, Massachusetts-based firm that compiles insurance industry data.

The 60 million U.S. homeowners who pay more than $50 billion a year in insurance premiums are often disappointed when they discover insurers won't pay the full cost of rebuilding their damaged or destroyed homes.

Property insurers systematically deny and reduce their policyholders' claims, according to court records in California, Florida, Illinois, Mississippi, New Hampshire and Tennessee.

The insurance companies routinely refuse to pay market prices for homes and replacement contents, they use computer programs to cut payouts, they change policy coverage with no clear explanation, they ignore or alter engineering reports, and they sometimes ask their adjusters to lie to customers, court records and interviews with former employees and state regulators show.”
We buy insurance for financial security. Period. We’re not playing charity with the insurance company. Purely and simply it is a business transaction. Whether we are an individual or a family, a small business or large corporation, or any of the myriad of governmental bodies across the nation, none of us are handing over our money because of any other reason than for some kind of financial security.

Without it, we risk becoming financially devastated or ruined in the blink of an eye. We know this and pay over hundreds and thousands of dollars to protect our assets: health, life, car, home, businesses, municipalities and the like.

Yesterday, I posted an article from the Washington PostHurricane Katrina Exacts Another Toll: Enduring Depression.

In response to that article, LifeDirection the following comment. The commenter is a single mom, small business owner, home-schooler, tutor, scientist, consultant, and author who lives in Baton Rouge, Louisiana. In June, she had learned that she could pay off her debts quicker than she had realized. Then news of her homeowner’s insurance policy changes arrived.
It's September 2007, and my new homeowners insurance policy takes next month. My hurricane deductible went up from $1000 to $7550. Damn, how am I going to save that much extra money to self-insure against non-catastrophic hurricane damage? I'm already working one full time job and two part time jobs and ends barely meet now. I keep waiting for the other shoe to drop, again. This kind of stuff is what keeps my depression acting up. You think you're making progress, then bam, something else hits you.

I have an appointment with my psychiatrist this week. Thank goodness. I think I may need a medication change. Or maybe the change in feelings is good. I actually feel angry, frustrated and sad. I was numb since the storm until about 3 months ago. So far I've taken my feelings out in writing on my blogs. I fear becoming violent. The only thing that stopped me from getting in my car and driving to my insurance agent's office was I was still in my boxers and a t-shirt, and by the time I got dressed I had cooled off. I've never felt anger this way before. It scares me.
Here in Katrina Land, the link between our individual and collective mental health and our financial devastation is getting more and more attention. Dr. Daphne Glindmeyer, a New Orleans psychiatrist who is president of the Louisiana Psychiatric Medicine Association, concluded
"There's more depression, more financial problems, more marital conflict, more thoughts of suicide. And a lot of it is in people who never had any trouble before."
At least we’re getting some kind of attention to this problem. Others across the nation have had to bear alone their insurance-induced grief. In its article, Bloomberg opened with what had happened to a homeonwer in San Diego, California.
Julie Tunnell remembers standing in her debris-strewn driveway when the tall man in blue jeans approached. Her northern San Diego tudor-style home had been incinerated a week earlier in the largest wildfire in California history. The blaze in October and November 2003 swept across an area 19 times the size of Manhattan, destroying 2,232 homes and killing 15 people.

Now came another blow. A representative of State Farm Mutual Automobile Insurance Co., the largest home insurer in the U.S., came to the charred remnants of Tunnell's home to tell her the company would pay just $220,000 of the estimated $306,000 cost of rebuilding the house.

``It was devastating; I stood there and cried,'' says Tunnell, 42, who teaches accounting at San Diego City College. ``I felt absolutely abandoned.''
The stories are all over the country. State Farm pulling out of Oklahoma while Allstate jacks up its premiums. Allstate refusing to write new policies in California and Brooklyn, New York. And the lack of affordable insurance along with the failure of big insurance companies to pay on legitimate wind claims here in Katrina Land is well known.

What can we do about it? How can we stop this insanity? When will homeowners and business owners, municipalities and counties get a break from the insurance industry? When WE take action to stop the madness.

Luckily, today, this minute, this very second is our lucky break. Yes, you know shat that means. It’s political hell raising time.

Today we must contact every congressional representative to let them know that the financial security of our family requires that we pass the multiple insurance bill that will allow Americans who buy flood insurance from the federal government to opt to purchase wind insurance as well. Private insurers deliberately got out of the flood insurance business in the 60’s and that is when the federal government got in the business of helping families and businesses obtain some financial peace of mind.

Once again, it is the brilliant forethought of a Democrat to protect the financial health and well-being of American families and businesses. Congressman Gene Taylor and his staff drew up the bill that is providing us with this opportunity to salvage our financial security through allowing businesses and homeowners to buy ONE policy to cover both wind and flood.

It’s time to end the big insurance charade, which has proven many times that it isn’t such a good neighbors afterall.

Today’s the day to contact our congressional representatives with a simple message. Our families and our businesses need the financial security that comes from one policy for both wind and flood. Our families and our businesses need Congress to pass H.R. 3121, and we need this on a strong bi-partisan basis.

Passing this bill is what will help to salvage some financial and emotional stress here in Katrina Land . . . and help millions of American families and businesses throughout the nation, 55% of whom--including yours truly--live within 50 miles of our nation’s beautiful coastline, families and businesses that deserve to sleep well at night knowing that paying their insurance premiums places their financial security in good hands.


© 2007 Ana Maria Rosato. All rights reserved.
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Sunday, September 23, 2007

Hurricane Katrina Exacts Another Toll: Enduring Depression




Health Officials Cite Stresses of Rebuilding

These people don’t necessarily need a good psychiatrist,” Rigamer said. “They need a good contractor or someone to fix the ‘Road Home’ program and good leadership.”

By Peter Whoriskey
Washington Post Staff Writer
Sunday, September 23, 2007


NEW ORLEANS -- A gravel-voiced fire department captain, Michael Gowland says he had never been a big crier.

"I'm not a Neanderthal," he said last week, "but I wasn't much for tears."

Now, sometimes, he cries two or three hours at a stretch. Other times, his temper has exploded, prompting him one day to pick up a crescent wrench and chase an auto mechanic around a garage. Even more perplexing to him, the once devout Roman Catholic now wonders "if there's anything out there."

"If anyone had told me before that depression could bring me this low, I'd have said they were a phony," Gowland, 46, married and a father of three, said during a break from fixing his flooded home. "Everything bothers me."

More than two years after the storm, it is not Hurricane Katrina itself but the persistent frustrations of the delayed recovery that are exacting a high psychological toll on people who never before had such troubles, psychiatrists and a major study say. A burst of adrenaline and hope propelled many here through the first months but, with so many neighborhoods still semi-deserted, inspiration has ended.

Calls to a mental health hotline jumped after the storm and have remained high, organizers said. Psychiatrists report being overbooked, at least partly because demand has spiked. And the most thorough survey of the Gulf Coast's mental health recently showed that while signs of depression and other ills doubled after the hurricane, two years later, those levels have not subsided, they have risen.

"It's really stunning in juxtaposition to what these kinds of surveys have shown after other disasters, or after people have been raped or mugged," said Ronald C. Kessler, a professor of health-care policy at Harvard Medical School, who led the study. Typically, "people have a lot of trouble the first night and the first month afterward. Then you see a lot of improvement."

But, in New Orleans, the percentage of people reporting signs of severe mental illness, suicidal thoughts and post-traumatic stress disorder increased between March 2006 and the summer of 2007, the survey showed.

"A lot of people had this expectation in New Orleans that, 'Dammit, by next Mardis Gras, we're going to be back' . . . and then they weren't," Kessler said. "Then they said, 'By next year, we'll be back,' and they weren't. We're in this stage of where there are a lot of people just kind of giving up."

Times-Picayune columnist Chris Rose wrote about his own depression in a widely discussed newspaper article published in October and then in his recent book, "1 Dead in Attic." The article struck a chord.

"I probably amassed 3,000 e-mails from people who felt like me," Rose said. "Now they come up to me in the grocery store and tell me what meds they're on. I say, 'Congratulations.' "

Depression is often discussed in terms of chemical causes, but interviews with psychiatrists and patients here ascribed its appearance in post-Katrina New Orleans to the stresses of rebuilding.

Because of the hurricane, many have lost or changed jobs. Thousands are still living in cramped FEMA trailers and many are living in semi-deserted streets.

"If you've lost your job, you've lost your house and you've lost your friends -- well, you ought to be depressed, man, or else you're out of touch with reality," said psychiatrist Elmore Rigamer, the medical director for Catholic Charities in New Orleans, which runs five city mental health clinics.

"What we can do for these folks is to make them understand that they're not crazy," Rigamer said. "And then they can explain it to their wives and husbands."

Lyn Byrne, 58, a physical therapist, lost her Gentilly home to the flooding. Before the storm, she said recently: "I was a regular person. I had a house. I had friends, I had book clubs, I had Monday night chick flicks. I had a church."

Byrne was fine until she moved back to New Orleans more than a year after the storm to try to salvage her property.

Since then, she has lost more than 30 pounds. She often found herself crying on a whim, nervous about everything, and suddenly uninterested in socializing.

When the Tylenol PM stopped putting her to sleep, she sought out a psychiatrist and, while she had just expected to get sleeping pills, she wound up talking and crying for two hours. The psychiatrist put her on doses of Zoloft and other antidepressants -- then ratcheted up the dosages.

In telling her story, she asks: "How could I not end up anxious and depressed?"

Her troubles began with the FEMA trailer. Three times she flew down from New York, where she was staying with her mother, for an appointment with the federal contractor who was supposed to deliver the trailer to her front yard.

The contractor missed each appointment.

Finally the trailer arrived. But with only one in four of her neighbors back, her old neighborhood is a forlorn and sometimes threatening place. Her car has been stolen twice from the driveway. Once, while she was sleeping in her trailer, burglars broke in and stole her purse and other personal items.

Now before she goes to sleep at night, she hangs water jugs off the window latches and puts the trash can beside the front door in hopes of foiling the next intruder.

"Do you think I'm having mental issues yet? Wait -- it gets better," she said.

Her biggest problem is trying to finance her house repairs and escape the trailer: Like thousands of others in Louisiana, Byrne did not have enough insurance.

She has received $40,000 from her flood and homeowner's insurance policies, but a contractor told her the repairs would cost $133,000.

The state's "Road Home" program is supposed to provide financial aid for people in her situation. Yet, although she was one of the first to apply, she still has not received a check.

Two years after the flooding, Byrne has no idea when she will ever get out of the trailer or stop driving around with laundry in the car in search of an open laundromat, and whether her friends and church, St. Raphael's Catholic, will return.

"People say, 'Oh, we're coming back -- look at the French Quarter or Magazine Street.' But I don't live there. Where I live, there's no church and no laundromat and no people. It's just so tragic, and it keeps getting sadder and sadder."

According to the Harvard survey, many people in New Orleans feel the same way.

Between March 2006 -- six months after the storm -- and summer 2007, the number of people reporting signs of serious mental illness rose from 11 percent to 14 percent. Before the storm it had been about 6 percent.

Similarly, the number of people who reported thoughts of suicide rose from 3 to 8 percent in New Orleans.

"There's more depression, more financial problems, more marital conflict, more thoughts of suicide," said Daphne Glindmeyer, a New Orleans psychiatrist who is president of the Louisiana Psychiatric Medicine Association. "And a lot of it is in people who never had any trouble before."

Interviews with psychiatrists turn up story after story of people with no history of depression plunged into mental anguish deep enough to require treatment.

A teenager living in a trailer turns homicidal. A woman whose mother died in the car during an evacuation -- and then could not be taken to funeral home -- suffers post-traumatic stress disorder. A firefighter involved in dozens of rescues seethes with anger at the region's inability to come back.

"These people don't necessarily need a good psychiatrist," Rigamer said. "They need a good contractor or someone to fix the 'Road Home' program and good leadership."

News assistant Jill F. Bartscht contributed to this report.

The Washington Post originally published this article on September 22, 2007.


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First trip to Coast since Katrina packs wallop on heart




9/23/2007
Daily Journal
by Leslie Criss

“We shall draw from the heart of suffering itself the means of inspiration and survival.”
– Winston Churchill
My trip to the Mississippi Gulf Coast two weekends ago was my first since Katrina ravaged the place I called home for nearly six years.

And though I’d seen the film footage and photographs, none adequately prepared me.

In the two years since the hurricane devastated the area, the clean-up effort has been ongoing. The debris has, for the most part, disappeared.

But there remains mile after mile of empty lots where grand old houses once stood – a true and tragic testament to the power of nature.

Weeks after the storm, a friend brought me a photograph of the property on Ocean Springs’ Front Beach where once stood among majestic oaks a beautiful old house, complete with cottage. It’s where I – and three dear friends – lived during our teaching years.

The photo made me sad. But when I rode by the place two weeks ago, the tears came. The land is clear, except for a single column of concrete and brick that once bordered a staircase.

Later in the day, two friends drove me along Highway 90 from Biloxi to Gulfport. And I kept having to ask where we were. Except for the lighthouse and a battered Edgewater Mall, no landmarks exist.

When I talked to folks who’ve lived on the Coast all their lives, most grew sadly pensive when they spoke of Katrina and their personal losses. Others spoke of their lives now lived in FEMA trailers as they continue to wait for funds to repair or rebuild.
Many are hopeful for the future of the Coast.

Others’ words are laced with bitterness. Most agree the pre-Katrina Coast will never again be.

Angrily, folks (including me) agree on something else, too: The national media continues to miss the story.

Sure, television and print reporters spent the days just after Katrina in this state of my birth. But then over in New Orleans, a city damaged mildly by a hurricane named Katrina, the levees broke. And those rushing waters pulled the collective curiosity of the media – and the concern of the nation – right into Louisiana.

Even now, two years later, when reporters talk about Katrina, it was the hurricane that devastated New Orleans. Mississippi is often mentioned as an afterthought.

Truth is, as I see it, the national media have missed out on some amazing stories by focusing all attention on our Louisiana neighbors. (And, no, I’m not saying New Orleans merited no attention.)

I can tell you that Coast native and “Good Morning, America” anchor Robin Roberts is a hero to a lot of Coast dwellers. “If not for her, we’d have been forgotten.” That’s what one person told me.

Maybe one day the national media will get it. I hope so. For there are still stories to be written and told about the kindness of strangers, the goodness of neighbors, the patience, perseverance and power of the people along the Coast.

Right here in Mississippi.

Contact Leslie Criss at leslie.criss@djournal.com or 678-1584.

Appeared originally in the Northeast Mississippi Daily Journal, 9/23/2007.


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