Insurance Companies Favor Profits Over People

Jennifer Moore

Contributor

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The American Association for Justice has published a report that shows that insurance companies have placed profits over people when responding to natural disasters like Hurricane Katrina. It has been over two years since Hurricane Katrina and many victims have not been compensated for their damage. This is despicable. The report shows that some insurance companies have denied claims and argued that the damage was not caused by hurricane wind, but by floodwater, which is usually not covered.

http://www.justice.org/pog2007.pdfSome companies have been caught committing the following offenses:

forging signatures on earthquake waivers after an earthquake, to claiming termites were responsible for tornado damage.

Yet, insurance companies consistently report record profits. They made more than $40 billion in 2005 -- the same year as Hurricanes Katrina, Wilma, and Rita. Check out the report for more details of how the insurance industry has handled and continues to handle claims from Hurricane Katrina.