A group of former insurance adjusters filed suit (see full text of the complaint) last year accusing insurers of misrepresenting claims to the National Flood Insurance Program to limit their financial losses in Katrina’s aftermath. The suit was legally required to remain under seal while federal officials reviewed the case. A federal judge in New Orleans unsealed the suit last week, after U.S. Attorney, David Dugas decided that his Baton Rouge-based office will not intervene. Dean Starkman, Insurance Transparency Project, ties together several great examples of the alleged fleecing of the National Flood Insurance Insurance Program, including compensation for flood damage where there was no damage, 300% charge up for building materials, insurer flood claim additions for items insureds never owned or filed for. Click here for related story….
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