March 9, 2007
Reported by Associated Press
U-S Senator Chris Dodd, a Democratic presidential hopeful, said he's angry with the insurance industry's response to the 2005 Gulf Coast hurricanes. He said today in New Orleans he will hold senate committee hearings on insurance issues.
Dodd, chairman of the Senate Committee on Banking, Housing and Urban Affairs, said he expects to hold hearings on April eleventh, either in Washington or the New Orleans area.
Dodd said insurance problems, including cancellations, disputes over coverage and high costs, hinder recovery and could happen in any coastal state that is vulnerable to natural disaster, including his home state of Connecticut.
Dodd singled out Allstate insurance for criticism, noting the Louisiana Department of Insurance's contention that the company made incomplete "drive-by" inspections of homes and canceled policies after wrongly concluding that the houses were abandoned.
Allstate has denied sending cancellation notices to policyholders without inspecting their property, and said the inspections were thorough.