On February 28th the US House of Representatives Financial Services Subcommittee on Oversight and Investigations held a hearing on the insurance crisis in the areas affected by Hurricane Katrina.
My mother once pointed out to me that insurance companies make their money on collecting premiums, not on paying claims. That, and investing the money that they get from us. Upon this logic they seem to be cutting their losses in the Gulf Coast quite effectively.
The Hearing was presided over by rep. Melvin Watt (D-NC). It featured testimony by reps Bobby Jindal (R-La), Gene Taylor (D-Miss) and William Jefferson (D-La), David Maurstad, Federal Insurance Administrator for FEMA, Jim Hood, Attorney General for the State of Mississippi and Dr. Robert Hartwig, president of the Insurance Information Institute, who was revealed at the end of the hearing to be representing Allstate Insurance as well, which was hardly shocking given his defense of the insurance industry.
Selected audio from the hearing follows, starting with the testimony by rep. Jindal. audio
Testimony by William Jefferson. audio
Testimony by Rep. Gene Taylor. audio
The hearing got good when Maxine Waters came on board to blast insurance company shill Hartwig. audio
But perhaps the best was rep. Taylor of Mississippi tearing into Marstaud for the incompetence of FEMA. audio