Nationwide Insurance Pays Additional $25 Million in Katrina
From: Office of the State Insurance Commissioner
Filed 6/27/07 GCN
Commissioner of Insurance George Dale announced today that The Nationwide
Insurance Companies, who agreed to voluntarily reevaluate Hurricane
Katrina slab cases in April, 2007, has paid more than $25 million
additional dollars in claims payments since the reevaluation process was
Nationwide had over 11,000 claims filed in the three Mississippi coastal
counties after Hurricane Katrina and has paid in excess of $300 million in
claims. Of the claims filed, there were 641 slab or near slab cases that
were reevaluated. Of these 641 slab claims, 532 have been resolved which
would indicate a success rate of approximately 83%. With regard to the
remaining 109 slab claims, negotiations are on-going thus far.
Nationwide continues to write policies with wind coverage on the
Mississippi Gulf Coast in some instances and under certain conditions.
"This is proof positive that the reevaluation process works, contrary to
allegations voiced by headline seeking critics of the process. This
company voluntarily went back and reviewed every slab claim they had,
re-read every report filed, with new adjusters and as a result many of
their policyholders received additional claims payments, even if their
claim had already been closed. I am extremely pleased that more and more
coastal policyholders are finding closure and have had money placed
directly into their hands so they may begin the long process of healing
and rebuilding," said Commissioner George Dale.
Dale added that his office is continuing to work with insurance companies
daily to settle or reexamine their outstanding Katrina claims as well as
working to bring new companies to write policies in Mississippi.
"It is a delicate and time-consuming process, as illustrated by our work
with Nationwide. We worked with them for months and thanks to our
determination and perseverance over 500 more coastal policyholders can
move on. We plan to use that same determination to help every policyholder
on the Gulf Coast," said Dale.