In his weekly radio address last week, Mississippi Senator Trent Lott stressed the importance of the Broussard v. State Farm verdict and expressed hopes for a settlement. He also announced that he has commissioned a study to look at developing a national catastrophe fund.
The Broussard verdict found that evidence was inconclusive in terms of determining damages caused by flooding and damages due to wind. It granted the plaintiffs more than $220,000 due from their insurance policy, and also awarded $2.5 million in punitive damages.
"This is a very important verdict," said Sen. Lott, in his radio address. "It's one I hope will help lead toward a more reasonable outcome with regards to the insurance industry. It's one of if not the biggest problems we face now in South Mississippi. I hope this decision is interpreted properly, and it will lead to a global settlement that will provide the kind of assistance the people in South Mississippi are entitled to."
Lott also announced that he has introduced to study the issues involved with creating a national catastrophe fund. The bill requires a panel of 14 experts to provide a report to Congress within 90 days about the feasibility of creating a federal catastrophe fund that would limit the amount of money states would provide in times of disaster. It also would provide tax-deferred accounts for insurers and homeowners.
"This problem is a big one," said Lott. "We found it out after the hurricanes in Florida and Mississippi, we've seen it with tornadoes in the center of the country, and we've seen it with earthquakes. We're going to have to give some thought to what we're going to do to be of the maximum assistance in these large disasters in the future."
Interested in more catastrophe news and in-depth articles? Head over to Claims' catastrophe channel for more information.
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