Senator Trent Lott, the powerful Republican Senator from Mississippi, has seen the light. Lott, who, until very recently, was a longtime defender of insurance companies, is no longer. Senator Lott lost his home to Hurricane Katrina in 2005. He filed a claim with his insurer, State Farm. The “Like a Good Neighbor” people denied coverage on Lott’s claim, as well as the claims of tens thousands of other homeowners. State Farm claimed Lott’s home, and the other homes, were actually damaged by flooding, a non-covered risk under the policies Lott filed suit, litigated the case over a year, and only recently settled. That experience caused Lott to re-think his allegiance to insurance companies. He has now concluded that the insurance industry needs some reforms[gasp!!!]. To quote Senator Lott: “I’m like a woman scorned. I’m prepared to to continue to kick their fanny until the last day I’m alive on this Earth because they have mistreated too many people.” Better late than never Senator.

Categories: INSURANCE