In his weekly radio address last week, Mississippi Senator TrentLott stressed the importance of the Broussard v. State Farm verdictand expressed hopes for a settlement. He also announced that he hascommissioned a study to look at developing a national catastrophefund.

The Broussard verdict found that evidence was inconclusive interms of determining damages caused by flooding and damages due towind. It granted the plaintiffs more than $220,000 due from theirinsurance policy, and also awarded $2.5 million in punitivedamages.

"This is a very important verdict," said Sen. Lott, in his radioaddress. "It's one I hope will help lead toward a more reasonableoutcome with regards to the insurance industry. It's one of if notthe biggest problems we face now in South Mississippi. I hope thisdecision is interpreted properly, and it will lead to a globalsettlement that will provide the kind of assistance the people inSouth Mississippi are entitled to."

Lott also announced that he has introduced to study the issuesinvolved with creating a national catastrophe fund. The billrequires a panel of 14 experts to provide a report to Congresswithin 90 days about the feasibility of creating a federalcatastrophe fund that would limit the amount of money states wouldprovide in times of disaster. It also would provide tax-deferredaccounts for insurers and homeowners.

"This problem is a big one," said Lott. "We found it out afterthe hurricanes in Florida and Mississippi, we've seen it withtornadoes in the center of the country, and we've seen it withearthquakes. We're going to have to give some thought to what we'regoing to do to be of the maximum assistance in these largedisasters in the future."

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