A Louisiana state legislator detailed the devastation that Hurricane Katrina wrought on her state and offered a suggestion about how to ensure that carriers continue to write business there.
The legislator, Shirley Bowler, R-Harahan-La., says that she has concerns that state catastrophe funds and private solutions may not be enough to encourage insurers to write business in her area and, consequently, an optional federal charter could be a better alternative.
The reason, she explains, is an optional federal charter could make it possible for companies to more easily write business in many states, diversify their risks, and thus, be more willing to write business in states like Louisiana.
Bowler says that such coverage is critical for the area because of the devastation experienced in New Orleans and the surrounding areas. "We'll be a long time recovering from this," says Bowler, a state representative for the New Orleans suburb. "The loss of life is devastating," she adds.
"My district experienced mostly wind-driven claims," says Bowler. While her area was on high ground and did not experience flooding, "there is not one building that does not have roof damage," she continues. Wind even ripped off brick siding from some homes, she says.
But even so, there are still practical issues that area residents face. For instance, she says, that receiving mail may be a problem because of the number of requests to have mail forwarded. She says that right after the storm, she requested to have mail forwarded to Baton Rouge and has not received a piece of mail to date.
The issue is one that could impact insurers and state regulators as they try to get regular payments such as workers comp and structured settlement payments to displaced consumers.
And, she says that she has heard reports of insurance claims adjusters being displaced from hotels by disaster relief teams from the Federal Emergency Management Agency. If true, it makes it more difficult for people to file claims because they need the adjuster's opinion in order to make a FEMA claim, she explains.
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