Katrina made me realize, however, that insurers could — I’m not saying they did — but could simply deny a legitimate claim or pay a few bucks on the dollar, put the money in its pocket and say “sue me.” And they could — theoretically — do this hundreds or even thousands of times. Or they could — not saying they did – assign hurricane losses to “flood,” and divert their losses onto U.S. taxpayers. And they could — repeat, theoretically – meet in Atlanta shortly before Katrina to decide how they would handle flood/wind claims and do so legally under their anti-trust exemption. (See archives; keep up with me, people!) What about state regulators, you say? That’s a story for another day (Y’all are greedy. Simmer down!)Meet the Insurance Transparency Project, y'all.
Tip of the enrevanche chapeau to MeFi.