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

Sunday, September 30, 2007

Our Opinion: Mr. Bush, don't kill the multi-peril bill

Sunday, September 30, 2007

With billions of dollars and millions of lives on the line, President George W. Bush announced that he will veto a bill to offer windpool insurance through the National Flood Insurance Program.

The announcement last week from the White House left U.S. Rep. Gene Taylor dumbfounded. Taylor is the author of the multi-peril insurance legislation.

He maintains it is needed along the hurricane-prone U.S. coastlines since private insurance companies jacked their rates up in the wake of Hurricane Katrina.

At first glance, it might seem reasonable that the insurance industry would raise rates. After all, the Aug. 29, 2005, hurricane caused billions of dollars in damages. After the storm left its devastating mark on Louisiana and Mississippi, the insurance companies operating on the Coast came under fire for denying claims, underpaying claims and refusing to write policies. Their actions have also spawned a host of lawsuits that are still winding through the court system.

And those are exactly why the multi-peril legislation is needed. Though some may consider it foolhardy to continue living on the waterfront, the simple truth is that in the United States the bulk of the population lives within 50 miles of a coastline. As insurance companies pull away from this region in the light of record breaking claims payments from Katrina, someone has to step into the breach and fill the gap.

The bill is headed for the Senate. Sen. Trent Lott, a son of Pascagoula who lost his home to Katrina and was a member of a lawsuit against insurance companies filed by Pascagoula attorney Richard Scruggs, said he has some reservations about adding additional responsibility to the federal flood insurance program. But, he's also said he would consider adding wind damage to similar legislation in the Senate.

Bush, Lott and Thad Cochran, Mississippi's other senior statesman in the Senate, need to seriously weigh the consequences of this bill. Not just the added burden to the federal government, but also the added burden to millions of homeowners who are increasingly being priced out of the insurance market because of the probability of a hurricane.

Let these men know your stand on the multi-peril bill. Share your views with the president by writing to The White House 1600 Pennsylvania Avenue NW Washington, DC 20500. Or call and leave your comments at (202) 456-1111.

Sen. Lott can be reached locally at (228) 762-5400 and Sen. Cochran can be reached through his office in Gulf Port at (228) 867-9710.

Copyright 2007 gulflive.com. All Rights Reserved.
The Mississippi Press published this editorial.

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Saturday, September 29, 2007

Settlement reached in Katrina insurance trial

9/29/2007, 2:08 p.m. CT
By MICHAEL KUNZELMAN
The Associated Press


NEW ORLEANS (AP) — A federal trial over Hurricane Katrina damage ended abruptly with a settlement between the insurance company and the Mississippi couple whose property damage, a jury decided, had been caused by the storm's wind and should have been covered by the couple's policy.


Terms of the settlement between USAA Casualty Insurance Co. and Kevin and Sherrye Webster were not disclosed. But an attorney for the couple, Charles Merkel, called the outcome "very satisfying to everybody."

USAA spokesman David Snowden confirmed the settlement but declined comment.

On Friday, the eight-member jury concluded that all of the damage to the couple's beachfront house in Bay St. Louis, Miss., was caused by Katrina's wind, wind-blown debris or wind-driven rain — perils that are covered by the San Antonio-based insurer's policies.

The jury wasn't asked to specify how much money USAA owes the Websters for the damage.

USAA had argued that nearly all of the damage to the two-story home was caused by Katrina's flood waters and wasn't covered by the Websters' policy, but the jury disagreed.

"I think it's a big victory for all the homeowners on the Gulf Coast," said attorney John Cocke, who also represents the Websters.

Friday's verdict capped the first phase of a trial that started last week in Gulfport, Miss. The next phase had been set to resume Tuesday, with the jurors hearing testimony about damage to the contents of the two-story house. Ultimately, the judge was to be responsible for calculating what USAA owes the Websters, based on the jury's verdicts.

But the settlement, reached Friday after the jury had been sent home, eliminates the need for that.

USAA and other insurers say their homeowner policies cover damage from a hurricane's wind but not its rising water, including surge. The Websters didn't have a separate flood insurance policy.

USAA blamed most of the damage to the couple's house on Katrina's storm surge, but the couple argues that wind caused the house to collapse before surge reached it.

The Websters' policy had limits of $811,000 for the house, $81,000 for a barn on their property, $162,200 for living expenses and $760,480 for the home's contents. USAA paid them $10,944 for wind damage to the house and $42,929 for the barn.

Cocke said Friday's verdict means USAA will owe the Websters at least $800,000.

The Websters also are seeking unspecified punitive damages for the company's alleged bad faith, plus attorney's fees and expenses. Jurors won't be asked to consider punitive damages until later in the trial.

The couple is among thousands of Mississippi and Louisiana property owners who have sued their insurers after Katrina wiped out large swaths of the Gulf Coast in August 2005.

Several federal trials for Katrina insurance cases already have been held in Gulfport, Miss., yielding mixed results for policyholders.

In August 2006, U.S. District Judge L.T. Senter Jr. sided with Nationwide Mutual Insurance Co. and ruled that the company wasn't obligated to pay a Pascagoula couple for damage from Katrina's rising water. A federal appeals court in New Orleans later upheld that ruling.

In January, however, a jury awarded $2.5 million in punitive damages to a Biloxi couple who sued State Farm Fire and Casualty Co. for denying their claim. Senter later reduced the award to $1 million, though he said State Farm had acted in a "grossly negligent way."
_______

A.M. in the Morning! Note: On the heels of this story being published, the parties settled the case. See
Settlement reached in Katrina insurance trial

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Jury sides with policyholders in Katrina insurance trial

By MICHAEL KUNZELMAN
Associated Press Writer



A federal jury in south Mississippi sided Friday with a couple who sued their insurance company after Hurricane Katrina for refusing to cover more than $1.7 million in damage to their beachfront home and property.

The eight-member jury wasn't asked to specify how much money USAA Casualty Insurance Co. owes Kevin and Sherrye Webster for damage to their home in Bay St. Louis.

But jurors concluded that all of the damage to the couple's house was caused by Katrina's wind, wind-blown debris or wind-driven rain - perils that are covered by the San Antonio-based insurer's policies.

USAA had argued that nearly all of the damage to the two-story home was caused by Katrina's flood waters and wasn't covered by the Websters' policy, but the jury disagreed.



"I think it's a big victory for all the homeowners on the Gulf Coast," said attorney John Cocke, whose law partner, Charles Merkel, represents the Websters.

Friday's verdict capped the first phase of a trial that started last week in Gulfport, Miss. In the next phase, which begins Tuesday, jurors are expected to hear testimony about damage to the contents of the two-story house.

At the conclusion of the trial, U.S. District Judge L.T. Senter Jr. will be responsible for calculating how much money USAA owes the Websters, based on the jury's verdicts.

USAA spokesman David Snowden said he wouldn't comment until after the trial concludes.

USAA and other insurers say their homeowner policies cover damage from a hurricane's wind but not its rising water, including surge. The Websters didn't have a separate flood insurance policy.

USAA blamed most of the damage to the couple's house on Katrina's storm surge, but the couple argues that wind caused the house to collapse before surge reached it.

The Websters' policy had limits of $811,000 for the house, $81,000 for a barn on their property, $162,200 for living expenses and $760,480 for the home's contents. USAA paid them $10,944 for wind damage to the house and $42,929 for the barn.

Cocke said Friday's verdict means USAA will owe the Websters at least $800,000.

The Websters also are seeking unspecified punitive damages for the company's alleged bad faith, plus attorney's fees and expenses. But the request for punitive damages couldn't be considered until later in the trial.

The couple is among thousands of Mississippi and Louisiana property owners who have sued their insurers after Katrina wiped out large swaths of the Gulf Coast in August 2005.

Several federal trials for Katrina insurance cases already have been held in Gulfport, Miss., yielding mixed results for policyholders.

In August 2006, Senter sided with Nationwide Mutual Insurance Co. and ruled that the company wasn't obligated to pay a Pascagoula couple for damage from Katrina's rising water. A federal appeals court in New Orleans later upheld that ruling.

In January, however, a jury awarded $2.5 million in punitive damages to a Biloxi couple who sued State Farm Fire and Casualty Co. for denying their claim. Senter later reduced the award to $1 million, though he said State Farm had acted in a "grossly negligent way."

The Sun Herald published this article on September 28, 2007.


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The Best of A.M. in the Mornin September 16 - 27, 2007

by Ana Maria

Blog Entries
Santa Barbara's ABC Affiliate Airs Compelling 2-Part Original Katrina Series 9.17.07
Tiny Katrina-Battered Miss.Town Triumphs Over Bush Administration 9.18.07
'Katrina Sign Maker' Joe De Benvenutti Tells His State Farm Story 9.19.07
Important Katrina Vote to Help Gulf Coast Recovery 9.24.07
American Soldiers: Caught in the Crosshairs of Iraq and Katrina 9.25.07
Bush, Barbour’s Katrina Housing Plans Smell Fishy 9.26.07
BIG Katrina Recovery Bill on House Floor Today 9.27.07
Taylor’s Tremendous Triumph: Family, Business Financial Security One Major Step Closer 9.28.07

News Items

A shocking slap at Americorps, heroes of Katrina Sun Herald 9.16.07

Legal tactics stall insurance reform Dallas Morning News 9.17.07
IRS has bad news on Road Home Times Picayune 9.17.07
Children Slipping Further Behind after Katrina Philanthro Media 9.17.07

Mississippi Insurance Commissioner's Race Has Far-Reaching Implications Policyholders of America 9.18.07
Merlin Group: 103 paid in State Farm settlement Sun Herald 9.18.07
Residents dispute corps plan Sun Herald 9.18.07
Al Showers Reports On The Need For Dredging In Bay St. Louis WLOX-TV 13 9.18.07

Land buyout plan shocks Hancock Sun Herald 9.19.07
Using crayons to ease the trauma of hurricane Katrina International Herald Tribune 9.19.07

Religious leaders protest port plan Sun Herald 9.20.07

Buy-outs may be ‘voluntary,’ but insurance a big question Sea Coast Echo 9.23.07

First trip to Coast since Katrina packs wallop on heart Northeast Mississippi Daily Journal 9.23.07
Hurricane Katrina Exacts Another Toll: Enduring Depression Washington Post 9.23.07

Buyout plan startles residents, businesses Sun Herald 9.24.07

Federal help sought for coastal insurance problem The Mississippi Press 9.25.07
Insurance bill up for voteSun Herald 9.25.07

Katrina victims ask Shelby for help Alabama Press Register 9.26.07
Breaking News: American Bankers Association Supports Muliple Peril Insurance Policy (H.R. 3121) 9.26.07


RAND study: Affordable housing lags in Miss areas hit by Katrina Sun Herald 9.27.07
Gulf Coast: Two Years Since Hurricane Rita WIBW-TV in Topeka, Kansas, 9.27.07

U.S. Coast Guard Wet Debris Removal In Final Stage 9.27.07
HOUSE APPROVES FLOOD INSURANCE REFORM BILL 9.27.07

House Approves Taylor Multi Peril Insurance Bill 9.27.07
House passes multi-peril bill; measure moves to Senate 9.27.07
House votes to expand flood insurance program Washington Post 9.27.07

© 2007 Ana Maria Rosato. All rights reserved.
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Friday, September 28, 2007

See Congressman Gene Taylor in Action on the Floor!!

See Congressman Gene Taylor (D-MS) on the Floor
“One of the gentlemen mentioned that the insurance companies have settled 90-something percent of the claims. Let me address that. I was pretty busy as you might guess after the storm. I put off meeting with my adjuster for two weeks.

By the time I met with my adjuster I had heard dozens if not hundreds of my constituents, as I’m going around passing out MREs, telling me ‘they already told me they are not going to pay me… I had a homeowners’ policy, they’re not going to pay me.’

So by the time they came to my policy, to my house, I asked my agent: ‘Please don’t say a word. Each one of my steps is about three feet, let’s just count the steps until we find my roof.’ We passed off about 150 of them, 450 feet. I showed them my roof. Pointed out it was tin. Reminded them that tin doesn’t float. Showed them the holes where it had been ripped from the bolts.

I said, ‘This is my roof, I’m the only guy in this neighborhood that has this style roof, this is my roof, and it’s 450 feet from where my house used to be. Now, let’s walk back to where my house used to be.’ ‘Miss, what do you have to say?’ - Ms Lecky King, the claims adjuster.

First words out of her mouth: ‘I see no evidence of wind damage. We are however prepared to pay you for flooding.’

To which I reminded her that was very sweet of State Farm, that’s not their money, that’s the nation’s money. What about the claim for that roof that flew over there?
The House has just passed the Flood Insurance Reform and Modernization Act of 2007 by a vote of 263-146. The bill reauthorizes for five years the National Flood Insurance Program (NFIP), which was brought to the fore after Hurricane Katrina. The bill addresses many of the issues regarding insurance companies classifying damage as flood rather than wind so as to force the federal government to pay claims, which were brought up during extensive hearings in the new Congress.

The bill addressed the issues by expanding the NFIP to provide for multiple peril coverage (wind and flood), and with an amendment introduced by Rep. Gene Taylor (MS-04) which prohibits a company that sells and services flood insurance policies from including language in its own windstorm policies that would exclude coverage of wind damage solely because flooding also contributed to the damage.

It also provides for a new community outreach program, requires the updating and modernizing of flood maps, and addresses several other weaknesses in the program exposed by the 2005 hurricane season.

From Speaker Pelosi's blog, The Gavel.

© 2007 Ana Maria Rosato. All rights reserved.
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White House threatens to veto national wind insurance plan



By Ana Radelat
Clarion-Ledger Washington Bureau

September 27, 2007

WASHINGTON — A wind insurance plan proposed by 4th District Rep. Gene Taylor and championed by Democratic House leaders came under a White House veto threat Wednesday.

Taylor's proposal, embodied in a flood insurance reform bill the House plans to vote on today, would add wind coverage to the National Flood Insurance Program. That would allow homeowners who want to buy insurance against windstorm damage to purchase it with their flood policies.

But the Office of Management and Budget said shifting liabilities for windstorm damage from private insurers to the flood insurance program would be "fiscally irresponsible."

The federal government subsidizes flood insurance policies to offer homeowners in coastal and other flood-prone regions affordable insurance. Congress established the program in 1968.

But the OMB policy statement released Wednesday said adding wind coverage to flood insurance "would encourage individuals to task on risks that are inappropriate, putting themselves in harm's way because they would not have to bear the full costs of any subsequent damages."

It also said all taxpayers "would be subsidizing insurance rates for the benefit of people in those high-risk areas."

Taylor, a Democrat who lives on the Mississippi Gulf Coast, disagrees.

"They apparently didn't read the bill," he said of the OMB officials who recommended the veto.

Taylor said premiums collected from homeowners would pay all claims, without the need for taxpayer subsidies.

"At the end of the day, the homeowner will decide whether it's a good deal or not because he can choose whether to buy the policy," Taylor said.

Taylor proposed adding wind coverage to flood insurance after insurance companies denied Hurricane Katrina wind claims. Insurers maintained damage to coastal homes was caused by surging water, not winds.

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Taylor’s Tremendous Triumph: Family, Business Financial Security One Major Step Closer

by Ana Maria

With every desired amendment successfully voted into the legislation and all others definitively defeated, Congressman Gene Taylor’s multiple peril bill triumphed amid tremendous bi-partisan support to pass overwhelmingly in the U.S. House of Representatives. The final vote was 263 to 146. Nearly every Democratic member of the House voted for this pragmatic and forward thinking piece of legislation that protects our financial security. Adding their votes to the overwhelming majority total, 45 Republicans voted with their 218 Democratic colleagues to pass this pragmatic—and progressive—piece of legislation.

With Speaker Nancy Pelosi’s continuous support, we have overcome this major hurdle. With the support of Majority Whip Jim Clyburn (D-SC) whose job it is to be certain that counted the votes to ensure a bill’s passage, we have overcome this major hurdle in Katrina recovery. With the support of Congressman Barney Frank (D-MA) who chairs the House Financial Services Committee and Congresswoman Maxine Waters (D-CA) who chairs the subcommittee that heard this bill, this legislation has been safely navigated through the U.S. House of Representatives. Thank you to each of this important leaders and their stubborn determination to do right by us.

Of course, George W. Bush issued a veto threat on the very day of this vote. Yeah, that went over like a lead balloon. Based on some philosophical perspective that says leaving the financial security of families and businesses to the whims of greedy gutted Big Insurance carriers is what defines one as a Republican.

The Republican leadership, of course, had their anti-family, anti-business game plan nailed down. The plan was executed with the designed results achieved—slow down the process, put forth specious arguments, pretend to be what they are not. Concerned about the financial well-being of the nation. With record deficits and a continuously dragging economy going on seven years now, all they have left is pretension.

Their slow down plan worked. Every amendment offered by the Democrats was voted on by voice vote. A Republican would then ask for the vote to be recorded. That’s another 15 minutes to find out again that many Congressional Republicans were on record as being out of touch with America’s financial security needs. The Democrats put up about a dozen amendments all of which passed easily, first by voice then by recorded votes.

The most hilarious argument that the Republicans offered was the one saying that Congress should not consider voting on the Congressional Budget Office (CBO) approved, fiscally-sound multiple peril proposal until the federal flood insurance program’s financial fiasco was cleaned up. What a hoot! Congressman Frank pointed out that the program got to be a financial mess on the Republican watch and left that mess for the Democrats when they took over the Congressional leadership this past January.

Isn’t this a scream?! The Republicans are telling America that until someone else cleans up the mess that they had made of the federal flood insurance program that no other legislation—regardless of how rock solid, fiscally sound it is and how it will dramatically help our families and businesses—should be passed. Period. What a crock of rubbish.

None of those Republicans objecting to this bill ever put forth legislation to fix the problem with the flood program. None of them questioned whether Big Insurance was fraudulently passing their costs to the federal taxpayer.

In a letter to his congressional colleagues asking to support this strategic piece of legislation, Congressman Taylor wrote

Since Katrina, the federal government has paid more than $30 billion for housing repair grants, FEMA trailers, rental assistance, subsidized loans, tax deductions, and other housing assistance. Many of those costs could have been covered by insurance. Every taxpayer in America will benefit when much more damage is covered by insurance premiums rather than by costly and inefficient disaster assistance programs.

I’m so very proud that these courageous Congressional Democrats and Republicans put the financial security of our nation’s families and businesses above the security of their elected office. Surely Karl Rove and Company will target a number of these men and women in next year’s election. Nevertheless, they put America first. For this, I applaud each of them and hope you will, too.

Today is a day of congratulations, thanks, appreciation, and immense gratitude.

Congratulations to America for electing the men and women who passed this legislation in the face of a White House known for exacting its political revenge.

Immense gratitude to Congressman Gene Taylor and his staff who have worked diligently on this critical legislation.

Big thanks and much appreciation to Speaker Pelosi for caring about an area of the country deeply scarred by the Big Insurance’s gargantuan greed and White House Neanderthal-like neglect. Over a year ago, Speaker Pelosi promised this region that if the Democrats were in power in the House of Representatives, she would personally make certain that this legislation passed her chamber. This year at the August 13th Town Hall Meeting here in Bay St. Louis, Miss., I had the privilege of hearing her reiterate this pledge. The speaker is a woman of her word. With yesterday’s vote, she made good on her pledge.

Today’s political activity centers on this theme. Let’s contact our congressional representatives that voted for this legislation and tell them how grateful and thankful we are for their courage and their foresight in voting for the multiple peril legislation.

Think about it. When we’ve done our job, particularly if it may have been difficult to do, we respond favorably when someone thanks us afterward, right? We feel better about having done it. Next time something like it comes our way, we’re more likely to remember the gratitude we received. With that positive memory in place, we’re more likely to sign up for the next grueling task remembering that our previous hard work had been appreciated.

Our elected officials are human like the rest of us and will respond the same way. So, too, will their staff.

Imagine when the staffer in the office gets the call and takes down the message of . . . thanks and appreciation. Talk about being blown away! The smile slides across the face and the beaming from ear-to-ear emits this kind of after glow, a feeling of “hey, someone gave us a pat on the back. How cool is that!”

Yes, I’m definitely talking from my own experience. It works, baby. So, let’s burn up those phone and email lines with an attitude of gratitude. What a terrific way to start off the weekend. It can only get better from here—for our weekend and this legislation.

See, congressional members and their staffers are also friends with their counterparts in the U.S. Senate. They talk with each other. They eat lunch together. After a long day, they go out and have a drink together. Just like any other organization, Congressional offices cross-pollinate with friendships and the like. We need the buzz to go to the U.S. Senate. Contacting our congressional reps not only closes the loop on this phase of our political hell-raising, it also opens the door for a similar result in the U.S. Senate. It starts with saying thanks today so that the buzz can go around Capitol Hill.

As the Bonnie Rait song says, “Let’s give ‘em something to talk about.”


© 2007 Ana Maria Rosato. All rights reserved.
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House votes to expand flood insurance program



by Kevin Drawbaugh
Reuters
Thursday, September 27, 2007; 6:41 PM

WASHINGTON (Reuters) - The U.S. House of Representatives voted on Thursday to expand the federal government's flood insurance program to cover wind damage in a bill closely watched by insurers and developers.

Prompted by Katrina and other hurricanes in 2005, the bill would add wind damage to perils covered under the National Flood Insurance Program (NFIP), which protects millions of American homeowners.

The White House has vowed to veto the bill, saying it would expose taxpayers to excessive claims, crowd out private coverage and encourage over-development in high-risk areas.

There is no similar measure currently before the Senate.

But Democratic Rep. Gene Taylor told Reuters after the 263-146 vote that he expects fellow Mississippian Sen. Trent Lott, a Republican, to take up the idea of adding wind damage to the national flood insurance program in the Senate.

Taylor's home was destroyed in Hurricane Katrina two years ago. Like many of his neighbors, he found after the storm that his insurer would not cover the damages as he had hoped.

Taylor said his bill will simplify coverage and "cut out a situation that I'm convinced bilked the federal government out of billions of dollars."

Some lawmakers questioned the bill in House floor debate.

"I am deeply concerned that we haven't come to grips with the financing of our flood insurance program," said Oregon Democrat Earl Blumenauer.

West Virginia Republican Shelley Moore Capito said, "We must not let the desire to meet every perceived problem with a new government program drive us toward premature action that yields unwanted consequences."

The flood insurance "program is already financially unstable," he added.

The American Insurance Association warned that adding wind damage to the program would lead to a "fundamental realignment" of both the national flood insurance program and the private wind insurance market.

Marc Racicot, president of the association, which represents property and casualty insurers, said: "We believe the solution rests in improving, not displacing, the private sector's ability to serve homeowners and businesses in the path of potential storms."

© 2007 Reuters


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Thursday, September 27, 2007

House passes multi-peril bill; measure moves to Senate




By MARIA RECIO
SUN HERALD WASHINGTON BUREAU

WASHINGTON --
The House passed legislation 263 to 146 expanding the federal flood insurance program to include wind damage, a change inspired by the Gulf Coast region hit by Hurricane Katrina but with repercussions for all coastal areas.

The bill was bipartisan, as 218 Democrats and 45 Republicans voted for the bill, despite a White House veto threat. Only one Democrat voted against the bill, Rep. Brian Higgins, D-N.Y. There is no companion Senate bill, but House supporters are looking to House Minority Whip Trent Lott, R-Miss., who has been generally supportive of the "multi-peril" insurance approach.

The House vote makes good on promises made by House Speaker Nancy Pelosi, D-Calif., to the Mississippi Gulf to help restore the economy by staving off lengthy insurance disputes.

The Flood Insurance Reform and Modernization Act of 2007 would enable policyholders of the flood insurance program to purchase wind policies, as well as making reforms in the overall program.

In an emotional speech, Rep. Gene Taylor, D-Bay St. Louis, author of the provision adding wind coverage to the flood insurance plan, recounted his personal experience after Katrina.

"A little over two years ago, the nation's worst disaster struck," said Taylor. He described the devastation to the Mississippi Gulf and the complete loss of his oceanfront Bay St. Louis home and that of Lott's Pascagoula home.

"Between my house and Sen. Lott's house, there are maybe 40 miles and only a handful of houses were left standing," he said.

Thanking the many people and sectors who helped Katrina victims, Taylor left no doubt as to his motivation behind the bill:

"About the only group that didn't try to help the people of South Mississippi were the insurance industry."

Taylor and Lott sued their insurer, State Farm Fire and Casualty Insurance Co. and settled earlier this year. More than 500 South Mississippi lawsuits are pending in federal court.

Read more about this story in Friday's edition of the Sun Herald .

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House Approves Taylor Multi Peril Insurance Bill

Taylor Wind/Water Policy Legislation included as Provision in Flood Insurance Reform and Modernization Act, H.R. 3121

WASHINGTON, DC (September 27) – Today the U.S. House of Representatives approved legislation to provide multi peril insurance sponsored by Congressman Gene Taylor (D-MS) to allow property owners to purchase wind and flood coverage in a single policy.

The text of the Taylor bill (H.R. 920) was included as a provision within a measure introduced by Congresswoman Maxine Waters (D-California), H.R. 3121, the Flood Insurance Reform and Modernization Act. The bill passed by a vote of 263-146.

“Passage of this legislation will ensure that in future disasters homeowners won’t have to hire lawyers, engineers, and public adjusters to prove what damage was caused by wind and what was caused by flooding,” Taylor said.

Since Hurricane Katrina, the federal government has paid more than $30 billion for housing repair grants, FEMA trailers, rental assistance, subsidized loans, tax deductions, and other housing assistance. Taylor stated, “A significant amount of these costs could have been covered by insurance. Every taxpayer in America will benefit when much more damage is covered by insurance premiums rather than by costly and inefficient disaster assistance programs.”

The House also approved two related amendments offered by Rep. Taylor. One amendment would correct an inequity in current insurance law that has contributed to the severe shortage of apartment buildings and rental housing in Mississippi and Louisiana.

The second Taylor amendment prohibits insurance companies that contract with the National Flood Insurance Program (NFIP) from using Anti-Concurrent Causation language in their own policies to exclude coverage of wind damage solely because flooding also contributed to the damage. This amendment adds to the contract a statement that the insurance company has a fiduciary responsibility to federal taxpayers and will act in the best interests of NFIP. It requires companies to provide written guidance to their agents and adjusters of this obligation.

The House also rejected a procedural motion which would effectively kill the Taylor multi-peril insurance provision. This “motion to recommit” was offered by Rep. Michele Bachmann (R-MN), and was rejected by a vote of 179 yeas and 232 nays.

Taylor added, “I thank Speaker Pelosi, House Financial Services Committee Chairman Frank, Subcommittee Chairs Waters and Watt, for their steadfast assistance in passage of this vital legislation. I also am grateful for the support of the National Association of Home Builders, the National Association of Realtors, and the American Banking Association."

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