One of the insurance industry's biggest critics has announced his retirement from the U.S. Senate.
Mississippi Senator Trent Lott said he plans to vacate his position as Senate Republican Whip, the second-highest position in the Republican Party, in order to pursue other interests. Lott served 35 years in Congress and will finish the year in his current position.
His retirement is unlikely to cause tears in the property and casualty industry. In the last two years, Lott targeted the industry in the form of several legislative bills and was frequently a vocal critic. His was the national face for the issue of wind versus water when he became involved in a coverage dispute with State Farm after his Mississippi home was torn off its foundation by Hurricane Katrina, leaving just the slab it was built upon. State Farm denied a majority of his claim because it said damages were due to storm surge, an excluded peril on his policy. Lott later sued State Farm, eventually settling his case for an undisclosed amount.
Lott also used his influence to give money to the Homeland Security Department to investigate whether insurance companies mishandled insurance claims by inappropriately attributing losses to flooding -- a loss covered by the government-supported National Flood Insurance Program -- rather than wind. He also proposed clearer language on insurance policies, going so far as to request a list of events excluded on a policy printed in large, bold type on the opening page of a policy agreement.
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