Several weeks ago, a number of senators from the Gulf Coast joined to introduce legislation calling for creation of a broad-based commission to study how the soaring cost of homeowners insurance to Gulf Coast residents and businesses can be adjusted.

The panel's charge would be to report back to Congress on possible solutions as soon as possible.

"The [Feb. 28] hearing will examine concerns raised by both Democratic and Republican members of Congress about whether private insurance companies have been properly paying claims after Hurricane Katrina," said Rep. Mel Watt, D-N.C., who chairs the panel's Subcommittee on Oversight and Investigations.

He said the hearing would be "in response to concerns raised by a number of members from the Gulf Coast area," naming Reps. Gene Taylor and Bennie Thompson, D-Miss., as well as Reps. William Jefferson and Charlie Melancon, D-La.

"It is important for the subcommittee to begin the process of examining the claims-paying process by private insurance companies following Hurricane Katrina to establish a factual record for the committee to consider going forward," Rep. Watt added.

PCI's Mr. Annotti said the industry is "proud of the way we overcame obstacles to accessing consumers and storm-ravaged properties to settle millions of claims and help provide consumers and businesses the financial resources to rebuild their lives and communities."

Justin Roth, a director and federal lobbyist for the National Association of Mutual Insurance Companies, said that "while NAMIC is sympathetic to the plight of those homeowners who were affected by the storms of 2005, we believe that the current regulatory and judicial system are sufficient and should be allowed the proper time to remedy the few outstanding claims."

Mr. Roth added that NAMIC is hopeful this hearing will present an opportunity for members of the committee "to learn that just one year after Hurricane Katrina, more than 95 percent of all homeowners' claims have been paid, while fewer than 2 percent are in dispute."

Dennis Kelly, federal media relations director for the American Insurance Association, said that AIA "will work with Chairman Watt to the extent that the Subcommittee on Oversight and Investigations explores issues related to natural catastrophes and Katrina."

In his comments, Mr. Annotti added that PCI "looks forward" to working with public policymakers at the state and federal level to develop innovative solutions "so that the industry, government and consumers can better prepare for, respond to, and recover from future natural disasters."

Mr. Annotti noted that "a healthy and competitive insurance market is an important foundation on which to build a long-term solution that addresses the needs of consumers in the Gulf Coast and other disaster-prone areas of the U.S."

What: Katrina claims handling--fair or foul?

Who: House Financial Services Committee, Subcommittee on Oversight and Investigations, chaired by Rep. Mel Watt, D-N.C.