ID Theft

Do you believe in insurance?

Sisters blew whistle on Katrina claims By MICHAEL KUNZELMAN, Associated Press Writer Sat Aug 26, 8:36 PM ET OCEAN SPRINGS, Miss. - Who are the moles? The question was like a parlor game for employees of State Farm Insurance Co. after Hurricane Katrina, one they nervously played during coffee breaks or in the parking lot after work. ADVERTISEMENT Richard "Dickie" Scruggs, a prominent lawyer of tobacco litigation fame, created a stir by announcing in March that two "insiders" were helping him build cases against insurers for denying claims for Hurricane Katrina losses. Their identities remained a mystery until the day in early June when Cori and Kerri Rigsby — employees of a company that contracted with State Farm — told a supervisor they were cooperating with Scruggs. That startling admission — and their subsequent resignations — ended a risky charade. The Rigsbys say they spent months collecting reams of internal State Farm reports, memos, e-mails and claims records before they gave them to Scruggs and state and federal authorities. The sisters, who managed teams of State Farm adjusters, say the documents show that the insurer defrauded policyholders by manipulating engineers' reports so that claims could be denied.

Public Comments

1. The truth usually gets out eventually. It is just unfortunate that people had to suffer and not get their claims met because of unscrupulous insurers. I have had State Farm on one of my properties for 30 years and recently had a fire and they were incredibly good at making me whole. I have had to deal with insurance for car accidents too over the years and have not had a problem getting claims settled. Insurance is necessary and it is worth it when you need to make a claim. You take a risk though when you buy or build in an area that is subject to natural disasters and flood. Sometimes it is impossible to get insurance that is going to cover the one thing that could destroy your property. It is a question "Do you feel lucky?" People need to read the property exclusions page on their policies too.
2. I believe in MY insurance company. I have Ky. Farm Bureau and they have never denied any claim. I know a few people who have had State Farm for years, have 1 accident and get their policy cancelled. I guess it depends on your location and the agent in charge of the office.
3. Sorry, is this a question, or an ad??
4. Master, are you suggesting that people self insure the risks in their lives? Or should they read their policies, document what they own, and document what damages occur when they happen? Katrina was a catastrophe beyond what any could have imagined. The relief efforts are compounded by the insane Federal Flood Insurance program that we have.
5. Their identities remained a mystery until the day in early June Sisters blew whistle on Katrina claims By MICHAEL KUNZELMAN, Associated Press Writer Sat Aug 26, 8:36 PM ET Nearly 3 months to break this story? I find that even harder to believe than the accusations being made.