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Last Post 01/26/2011 9:13 PM by  host
Whistleblower lawsuit filed against insurance companies is thrown out
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CatAdjuster.org Founder

01/26/2011 9:13 PM

     A federal judge in New Orleans threw out the whistleblower lawsuits against Allstate Insurance Co. and other insurers alleging that they forced the U.S. government to pay inflated claims through the National Flood Insurance Program after Hurricane Katrina.


    Since being filed in 2006, the Branch case has been mired in procedural questions and never really got into the substance of the case.

    Filed by a group of former insurance adjusters known as the Branch Consultants, the suit alleged that Allstate and other companies improperly forced the U.S. government to pick up more than its share of the bill for Katrina repairs by classifying damage that was actually caused by wind as flood damage. The U.S. government pays for flood damage through the National Flood Insurance Program, while private insurance companies pay for wind damage through homeowners insurance policies.

    The above comes from a Times-Picayune article, click here to read more.

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