This is at least the third time State Farm has violated this Court’s discovery orders. It is apparent that neither State Farm nor its counsel feel any compunction concerning such violations.
Is there any misconduct by State Farm that will result in sanctions? That seems to be the question State Farm is asking this Court to answer. This Plaintiff and others who rely on the Court’s even-handed enforcement of its orders seek an answer as well.
The crowd that watched Seabiscuit race War Admiral was estimated at 40,000 – just slightly larger than the number of State Farm policyholders on the coast with claims subject to MID mediation:
The Pimlico Race Course, from the grandstands to the infield, was jammed solid with fans. Trains were run from all over the country to bring fans to the race, and the estimated 40,000 at the track were joined by some 40 million listening on the radio.
Comparable numbers who rely on the Court’s even-handed enforcement of its orders are watching this race for justice – and Bossier’s counsel, Coast attorney Judy Guice, says forget the roses; hang sanctions on State Farm!
Details are in Bossier’s Motion for Sanctions Under Rule 37(b) for Failure to Comply with Court Order of September 3, 2009, filed today in Katrina’s federal district court: Continue reading “She’s Seabiscuit in a match with War Admiral – Bossier v State Farm”
When I began blogging to what would become Slabbed my knowledge of complex finance was exceeded only by my ignorance of how the political process really worked. What I found from my perch here in Soggy Bottom is that talking aka cussin’ and discussin’ dominates the process. And besides all the talking that goes on inside the beltway there is a mirror conversation that happens on the outside, in places like Yahoo Allstate finance message board and in Sheila Brinbaum speeches where alternate realities are peddled out of economic self interest.
Beyond the shilling however the Government Accountability Office has been looking at the NFIP and their findings tell the real story, of a program abused by private for profit insurers with no oversight on part of FEMA. For instance in September 2007 the GAO found:
FEMA’s payments to WYO insurance companies for operating costs ranged from more than a third to almost two-thirds of the total premiums paid by policyholders to the NFIP for fiscal years 2004 through 2006……
The approach FEMA uses to determine operating costs for WYO insurance companies, rooted in policies negotiated and established about 25 years ago, cannot ensure that payments are based on reasonable estimates of actual expenses because actual expenses incurred by the companies for their services to the NFIP are not considered. Although it has authority to do so, FEMA does not collect data on actual WYO flood insurance expenses that could provide a basis for insuring that the WYO payments are based on a reasonable estimate of actual expenses.
Fast forward to December 2007 and another GAO report which found FEMA asleep at the switch and a program structures to create “an inherent conflict of interest”:
Insurance coverage gaps and claims uncertainties can arise when coverage for hurricane damage is divided among multiple insurance policies. Coverage for hurricanes generally requires more than one policy because private homeowners policies generally exclude flood damage. But the extent of coverage under each policy depends on the cause of the damages, as determined through the claims adjustment process and the policy terms that cover a particular type of damage. This process is further complicated when the damaged property is subjected to a combination of high winds and flooding and evidence at the damage scene is limited. Other claims concerns can arise on such properties when the same insurer serves as both NFIP’s write-your-own (WYO) insurer and the property-casualty (wind) insurer. In such cases, the same company is responsible for determining damages and losses to itself and to NFIP, creating an inherent conflict of interest.
And the GAO continued looking at the program most recently with the issuance of this report dated last month. The professionals at GAO continue to find a program operated with little oversight and no internal controls: Continue reading “The GAO does some more cussin’ and discussin’ on the National Flood Insurance Program”