WASHINGTON–Sen. Trent Lott, R-Miss., an outspoken foe of insurers who is said to have promised after Hurricane Katrina he would “bring down” the industry, announced today he would resign before the year's end.

Sen. Lott scheduled two news conferences today to make the announcement of his plans to leave the Senate at the end of the current session. In advance of those events he reportedly advised both Senate Republican leadership and the Bush administration of his decision.

Sen. Lott's comments concerning his plans to wreak havoc on insurers were made in a July 13, 2006 telephone call to Charles Chamness, president and CEO of the National Association of Mutual Insurance Companies.

Frustrated over the industry's handling of claims after Hurricanes Katrina and Rita in August 2005–including the handling of his own claim by his insurer State Farm for the destruction of a shorefront home–Sen. Lott promised to dedicate his next term to “bringing down State Farm and the industry,” according to a letter written by Mr. Chamness.

Sen. Lott, 66, is the Senate's number two Republican and Senate Republican minority whip.

According to several congressional staffers and political analysts, his resignation is occurring before the end of the year in order to avoid strong ethics rules initiated this year concerning immediate employment after leaving the Senate.

The new rules double to two years the amount of time a former public official must wait before he can join a firm to lobby his former colleagues. The new rule applies to those who leave office “on or after” Dec. 31, several sources said.

Sen. Lott's statement from Pascagoula, Miss., concerning his resignation did not mention further employment beyond saying that “we do think that there is time left for us to maybe do something else.” After a family Thanksgiving dinner he said he realized he missed “opportunities to spend extra time with family. We'd like to have a little more time to do that, too.”

His departure will mean two measures strongly opposed by insurers will be without their prime mover.

Sen. Lott has sponsored a bill that would repeal the anti-trust exemption the industry enjoys under the McCarran-Ferguson Act and another that would mandate the industry create a computerized clearinghouse to track automobiles that insurers declare a total loss.

In comments to a hometown newspaper regarding his suit against State Farm and his membership in the Congressional “Slab Club” for those members whose homes were washed away during Hurricane Katrina, leaving only slabs, Sen. Lott said this about State Farm: “I have heard nothing from that day to this, but I think that they've heard from me a few times.”

The senator after filing suit against State Farm eventually settled his claim against the insurer.

Sen. Lott said in a statement today that he and his wife Tricia “have had wonderful experiences. It's been such a pleasure to serve the good people in this state and to work on things that are important to our country and even issues that involve the world.”

“And for a boy from Pascagoula, Miss., it's been quite a wild ride but a very enjoyable one, and one that I'm proud of.

“I want to also say to my colleagues in the House and the Senate that I thank them, too, for allowing me to serve in leadershippositions in the House and the Senate and being able to work on issues that are important to all of us.

“I still feel very strongly about the role of the federal government and having a strong national defense. I still feel very strongly about fiscal responsibility, trying to find some way to control spending.

“We've not always done a great job of that, of late, but I still think that that's one of the key responsibilities of members of Congress, House and Senate.

“I've been very committed, as you know, to job creation and all that goes into being able to create more and better jobs inMississippi, including better education. And I focused in that area–in the higher education area–where the federal government really can be helpful and does have a role.”

His statement did not mention his combat with the industry. Sen. Lott's last known public comments on insurance were at a hearing Sept. 26 before the Senate Finance Committee on tax issues regarding offshore insurers.

Noting that he himself was a “victim” of Hurricane Katrina, Sen. Lott added that he was “devastated by the insensitivity, unfairness and greed of the property and casualty industry.”

Sen. Lott argued that while U.S. reinsurers may say they are seeking a level playing field to compete, in his view, profitability is more and more becoming the primary goal of companies. He questioned whether a leveling of the playing field could have an effect on homeowners in high-risk areas that are already struggling to find coverage.

“We want fairness,” he said, but added his concern whether homeowners would still be able to afford coverage should foreign reinsurers lose some of their tax benefits.

Mr. Chamness would not elaborate on the July 2006 letter he sent to Sen. Lott in response to the comments the senator made against the industry.

Mr. Chamness would only say that “while we have disagreed with the senator's views of our industry, with today's news we offer our best wishes in his future endeavors. NAMIC looks forward to working with the next minority whip in the Senate and the next U.S. Senator from the state of Mississippi.”

Joel Wood, senior vice president, government affairs of the Council of Insurance Agents and Brokers, said, “Yes, Sen. Lott has been angry at the industry, and, yes, some of his statements and intentions have seemed over the top.”

Frankly, Mr. Wood added, “a lot of the anguish he expressed seems justified to our own members, given the inconsistencies of Katrina claims handling. But I'd rather focus on the decades of good work he did in Congress to create a good business environment. As a native Mississippian, I'll miss him. He certainly made life interesting these past two years.”

Speaking on behalf of the Property Casualty Insurers Association of America, Cliston Brown, director of federal public affairs, said, “Sen. Lott has devoted a large part of his life to the people of Mississippi and has earned a well-deserved reputation as a powerful and influential leader in Congress.”

Mr. Brown added, “As we have seen, he could be either a great ally or a strong adversary, but whether you agreed or disagreed with him on an issue, you always had to respect his ability to persuade his colleagues. We wish him well.”

Charles Symington, senior vice president for government affairs and federal relations for the Independent Insurance Agents and Brokers of America, said, “Whether he is for you or against you, Sen. Lott is well known as a very effective legislator. His institutional knowledge from his long service in the Senate is threefold: procedural, substantive and political.”

Mark Racicot, president of the American Insurance Association, said, “His ability to lead is a rare skill and it will be missed in the U.S. Senate. I wish only the best for him and his family as he moves on to other endeavors.”

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Lott To Quit Senate Next Month

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