USA Ex Rel Rigsby v State Farm False Claims Act Update: State Farm sends out its PR astroturfers

And this time it isn’t Rossie at the Insurance coverage (denied) blog as Lecky King testified yesterday that Hurricane Katrina was a special type of Hurricane: the windless variety. And per Anita Lee’s latest update to the trial, Lecky King again overstated the amount of flooding at the McIntosh residence saying it had 5 and a half feet of water, around 3 feet more than official measurements indicated. She also admitted she substituted her judgment of damage from the Ivory Tower for the engineers and adjusters State Farm actually had on the ground.

Fact of the matter is State Farm and the rest of the insurers adjusted their post Katrina claims a curious way here after the storm by maxing out taxpayer paid flood coverage with a promise to later adjust the related wind claim, such promise later broken.  The effect was the insurers dumped their contractual obligations to pay for wind damage on the National Flood Insurance Program, whose use of private insurers as flood adjusters results in an “inherent conflict of interest“.

But that is OK folks because Mississippians evidently did not get enough abuse from State Farm after Katrina so they elected an Ed Rust shoe shine boy for their congressman. Remember it was not that long ago Steven Palazzo was touting that he was an integral part of reforming the National Flood Insurance Program.  That reform was the insurance industry version of the bill, which Palazzo supported.  Today?

Dramatic flood insurance increases could force residents to flee the coast, restoration officials say ~ Mark Schleifstein

That’s OK folks because South Mississippi’s Fluffer Congressman, a sometime deficit hawk that denies disaster relief to others parts of the country is on it.

As NFIP Faces Deepening Debt, Some Call for More Subsidies and Lower Rates ~ Arthur Postal

More specifically:

Palazzo proposes flood insurance relief ~ WLOX State Farm TeeVee

So how is that firing Pelosi thing working out for everyone down here, especially you peeps that received MDA grants to fix flooded out houses now with covenants on your land requiring NFIP coverage?

2 thoughts on “USA Ex Rel Rigsby v State Farm False Claims Act Update: State Farm sends out its PR astroturfers”

  1. I’ll kick start the comments on this post by quoting an oldie but goodie from the finance boards:

    Sheeple, herded and sheared.

  2. Only wish I could help the Rigsby’s out. We were paid flood in full and did not file a flood claim. SF’s adjuster to lad us we had wind claim. Later he called us and advised us to hire an attorney because his assessment was being denied. Long story – short, we sued, adjuster was going to testify on our behalf along with our forensic engineers, Accurweather, and other experts. We wer bllindsided by Magistrate Walker on pretrial conference. Finally settled for much less than policy and our honest adjuster was black balled by SF from working in area.

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