Why does Bush allow Insurance companies to deny tens of thousands of claims in the aftermath of Katrina?

seems insurance companies got the bright idea to deny almost all claims and even shreded policys too make collecting your insurance money harder .

YOU have to get an attorney and sue to get your money .

MANY people who have insurance are battling with allstate and others to collect on what they paid for .

20-20 did a short piece on this and two of allstates claims people turned over all there records to the state attorneys office .ALSO engineers reports have been altered .SEEMS to me any decent president would look into this quickly and resolve it .BUT repblicans only bust unions who strike and not Corporate america who refuses to pay .

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  • Anonymous
    1 decade ago
    Favorite Answer

    Who on earth would ever accuse Bush of being a good president. Insurance company's are large corporations that contribute to repuglican causes. In return they get away with making huge profits and if they actually have to pay a rightful claim that cuts into those profits, now which side do you think that Bush and the rest of the repuglican idiots will be on. Nothing like greasing the ol' palm.

  • 1 decade ago

    First of all we live in a society with a free economy, which means that the government will not get involoved with private business for the most part. It is not Bush's job to get involved with private companies.

    Second, you need to know that 20/20 is a very biased program and has and agenda to promote, what they didn't tell you in that story is that the people suing were suing for things their policies specifically did not cover ie: flood damage. No homeowners policy in this country covers flood damage, if you don't know that you are an idiot! Why should a company have to pay for things it did not cover? If you live in a hurricane zone, or a flood plane, as these people did, they should have had FEMA flood insurance.

  • Anonymous
    1 decade ago

    Insurance companies will do ANYTHING to get out of paying out claims. I do not think it has much to do with Bush though. The insurance companies' policies cover damage to homes caused by wind damage, but they are able to get out of paying many claims because "flood damage" is an exclusion. Therefore, any damage caused by water damage as the result of sitting water can be reason to deny the claim. Insurance companies are the greediest businesses out there. They know most of these people have nothing and cannot afford lawyers to seek compensation, so the fat cats just sit back and laugh.

  • Anonymous
    1 decade ago

    The insurance industry (in which I happen to be employed) donates millions upon millions nationwide to both political parties on all levels in order to get customized legislation to reduce their exposure.

    Seat belt laws, child seat laws, speed limits, carbon moxide and smoke detector laws, sprinkler laws, NFPA standards, PIP limits on auto policies, are all examples of how the insurance companies get legislature to act as risk managers and legislate safety to the benefit of the insurance companies.

    The insurance companies didn't want to write flood insurance so we have FEMA charged with covering flood damage to paying customers with federal tax dollars. If you don't have flood insurance you're not covered. Allstate, State Farm and the other big companies are fighting over whether the damage was storm or flood damage. One of the more dispicable practices is they are now claiming a storm surge is flood damage when traditionally it has been covered.

    The insurance companies are largely unregulated despite having several federal agencies entrusted with oversight because they are the one group with the single most powerful lobby in the US because they have their tentacles into every level of government.

    So it has nothing to do with Republicans... the Democrats won't touch them either. The major political parties have both been paid for, and are the official property of, the insurance industry.

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  • 1 decade ago

    It's the law. As others have stated, insurance policies cover wind damage and water damage if it comes in from the roof. Insurance policies do not cover flood damage, you have to buy a seperate policy for that. Insurance companies have no legal obligation to pay for flood damage. Making them pay would be illegal.

    And the truth shall set you free.

  • 1 decade ago

    If there are legitimate claims which are denied, the responsiblity is with the Attorney General of that state, not the President of the United States, and from what I've heard, the FBI is investigating these claims.

  • 1 decade ago

    This has to go down as one of the STUPIDEST questions I have ever read.

    If you went to school, you'd know there's nothing Bush can do about insurance claims. if you want to be covered, you should buy the correct policy.

  • Anonymous
    1 decade ago

    this is sh*tty... it clearly shows where the insurance companies priorities are...to the investors and not to the customers...

    if I had a home insurance agency that was pulling this stuff... I would switch... if they can do it to Katrina victims... they will do it to you, if you ever need them...

    wasn't Louisiana a red state? wonder if they will continue to vote republican?

    See they still make excuses... Republican logic: "If I'm fine... F*ck you!"... but what goes around, comes around...

    AND HOW CAN A HUGE HURRICANE PASS OVER... YET ALL THE DAMAGE ONLY BE FROM FLOODING?

    CAN SOMEONE EXPLAIN THAT?

    how do you seperate "wind" from "water" damage after a huge hurricane? what... if it's wet it was flood damage?

    "oh... you had earthquake insurance... that doesn't work... earthquake insurance only applies if you're on the crack of actual plates while they are shifting... you needed 'moving ground' insurance'... totally different... the moving ground is only a affect of the earthquake, not the earthquake its self..."

  • Anonymous
    1 decade ago

    The president seems to be a busy man.He's busy fixing oil prices,plotting to steal oil from Arab countries,causing stupid people to stay in the path of hurricanes, and now he is expected to run insurance companies.You schmucks expect much from a man that you consider an idiot.

  • W E J
    Lv 4
    1 decade ago

    silly liberal.....the president has no power over the free market like that.

    "The American people will never knowingly adopt socialism, but under the name of liberalism they will adopt every fragment of the socialist program until one day America will be a socialist nation without ever knowing how it happened." (Norman Thomas, 1936 presidential candidate on the Socialist ticket)

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