Do property insurers have an inherent conflict of interest when adjusting wind-versus-water damage claims following hurricanes? Sure they do. But the bigger question is, what should Congress do about it?
The Government Accountability Office recently released a report that raised questions about whether private insurers who sell property coverage to homes and businesses, but who also administer federal flood insurance policies, can be trusted to adjust claims when evidence of both wind and water damage is present after a hurricane. (To read NU's complete story about the GAO report, click here.)
The questions raised were more than academic, given the number of policyholders left in the lurch, as well as all the lawsuits, regulatory actions and congressional hearings prompted by claim disputes after Hurricane Katrina.
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