Claims News Service, Jan. 15, 11:34 a.m. EST — In response to the recent verdict in the case Broussard v. State Farm Fire & Casualty Co., in which a judge ruled that State Farm failed to pay a family for the loss of their home, Mississippi Congressman Bennie G. Thompson has announced plans for a formal Congressional investigation. Thompson is the chairman of the Committee on Homeland Security.
“This ruling is just the latest example of insurance companies engaging in a systematic effort to avoid paying Katrina victims for destruction caused by wind damage,” said Thompson, in a statement. “Congress will not sit idly by while insurance companies – who are making record profits – continue to shift the costs of this national disaster to the American taxpayer.
“Working with other Committees of jurisdiction, I will be investigating the assertions that insurance companies are wrongfully passing the costs of Katrina onto an already-burdened federal flood insurance program.”
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