Lott Says He's Turned On Battling Insurers

WASHINGTON--Sen. Trent Lott, R-Miss., said the battle he is waging to force insurers not to "mistreat" Mississippi residents over their Hurricane Katrina claims has "reinvigorated" him.

In remarks at an April 4 Edgewater, Miss., Rotary Club luncheon reported by the Gulfport Sun-Herald, Sen. Lott also said insurance representatives in Washington have been "surly" over his legislative efforts to remove the industry's antitrust exemption and work for other changes.

Sen. Lott has filed against his insurer, State Farm Fire & Casualty Co., for refusing to cover wind damage to the waterfront home in Pascagoula, Miss., that his family lost to Hurricane Katrina in 2005. The case is scheduled for trial in September.

"They hinted that maybe my being a litigant at the same time I'm pursuing legislation is improper, but I have a ruling," Sen. Lott said. "See, I've been around. I know how to protect myself."

He said he had obtained a ruling from the Senate counsel's office that his actions were legal. "In fact, there's a long history of great quotes about how it's very fortuitous sometimes when your interests coincide with those of your constituency," he added.

According to the newspaper, he said he was pursuing the antitrust legislation change because after Hurricane Katrina "I was made aware--I regret to admit I did not know the insurance industry was exempt from the antitrust laws."

The senator was quoted as saying he had sought re-election because of Hurricane Katrina and he gets up every morning "invigorated because I'm trying to figure out what I can do to help these people and these communities down here and help my state and to make people who have been mistreating them stop it. It gives you an adrenaline rush every morning."

Sen. Lott reportedly told the Rotary Club that he has refused to accept the settlement offer from State Farm for him and 640 other policyholders represented by his brother-in-law Richard "Dickie" Scruggs's firm, the Scruggs Katrina Group.

He said he wants a fair settlement for everyone. He also said two State Farm whistle-blowers are another reason he has declined the settlement offer.

Sen. Lott said insurers "assumed" they could mistreat Mississippians after Hurricane Katrina, as they have done to customers in Florida and Alabama.

"You may try it and you may get away with it, but you're going to go through the wringer before you get there because we're not going to take it," Sen. Lott said as Rotarians applauded, according to the newspaper.

He criticized record insurance industry profits and an 82 percent pay increase for State Farm CEO Edward Rust Jr. while the industry denies claims, cuts back on coverage and raises rates.

"We're not looking for war," he said. "We're looking for peace and a solution. But sometimes, to get a good result, you have to be prepared to take on the fight and take some of the flak that comes with it. In Washington, if you take on the insurance industry, you better bring your lunch. I've got mine."