A report released last week by the American Association of Justice shows that two years after Hurricane Katrina, insurance companies continue to engage in unfair conduct deliberately designed to avoid and delay the payment of legitimate claims.
The comprehensive report shows that the insurance companies who have denied hurricane related casualty claims have, during the preceding two years, reaped more than $100 billion in profits. Hurricane Katrina created the largest number of insurance claims in the history of the insurance industry, and thousands of lawsuits against insurance companies have been filed in the States of Louisiana and Mississippi.
“While the insurance industry is enjoying record profits, thousands of people continue to live in FEMA trailers and other temporary housing, waiting for their policies to be honored,” said John Haber, CEO of AAJ. “It is a sad and shocking fact that after every natural disaster insurance companies adopt a pattern of delaying and denying the payment of just and fair claims. We urge state governors and insurance commissioners to investigate this outrageous behavior and take lega action against it.”