Skip to comments.CNN Starts Weeklong Attack on Insurance Companies
Posted on 08/28/2006 1:52:14 PM PDT by freemarket_kenshepherd
With a tropical storm threatening Florida and the one-year anniversary of Katrina approaching, CNNs August 28 American Morning kicked off a weeklong look at Red Tape and Rubble in the Gulf Coast. But Ali Velshis first report in the series was unbalanced, treating insurance companies as guilty until proven innocent of greed or fraud.
Were going to be there when you need us, anchor Soledad OBrien said is the promise insurance companies extend out to policy holders, But many Katrina victims think uh, uh, thats not true, she complained.
OBrien set the stage for Velshis unbalanced report by painting insurance companies as trying to get off easy as compared to customers who probably didnt understand their policies.
Velshi did show an insurance industry spokesman to point out that private homeowners insurance plans have never covered flood damage from any cause, including hurricanes. Dissatisfied with the argument that homeowners have a personal responsibility to obtain separate flood insurance, Velshi turned to Mississippi trial attorney Richard Dickie Scruggs, who attacked the industry for making a profit.
Altogether, the five companies Scruggs is suing on behalf of hurricane victims reported profits of more than $12 billion last year, Velshi complained, adding that 2005 was the insurance industrys most profitable year ever even after record policy payouts.
But rather than finding someone who would argue the insurance industrys health amidst record payouts is good news for the economy and for the vast numbers of insurance claims paid out to hurricane victims, Velshi ended his story complaining that it wasnt a profitable year for Cecil Tillman, a man suing his insurance provider, Nationwide (NYSE: NFS).
Whats more, Velshis focus on record profits is misleading, according to an industry spokeswoman who talked to the Business & Media Institute recently.
(Excerpt) Read more at businessandmedia.org ...
'Oh THAT little clause,,well I didnt read that!!"
i think cnn is despicable. it's hard to say if I think less of the insurance industry.
Who in the 9th Ward HAD insurance?
My mom was recently screwed by Allstate and they are still trying to get out of paying her. Their Utah management is corrupt, for sure.
My mom was recently screwed by Allstate and they are still trying to get out of paying her
how so? - she should go to her Dept of Insurance for asst.
It simple! Either you had wind and flood insurance or you didn't. I live on a hill, I have insurance for wind but not for a flood. If I get flooded it's my fault!!
Typical CNN agenda driven massive deceit.
When will CNN be doing a week long series on why their Katrina coverage was so inaccurate?
If the insurance companies are as honest as they claim, they shouldn't mind being the focus of additional scrutiny.
Why does this media continue to protect bankers and lawyers?
This must be the beginning of the MSM ad campaign for Michael 'Fat-A$$ed' Moore's upcoming mockumentary.
You mean Allsnake?
I have a strong feeling the insurance deserve whatever they get. They're not exactly pure as the wind driven snow either.
Fats Domino, for one. Many, many people in the 9th Ward were hard working people who owned their homes and yes, *gasp* even had insurance!
most people do not understand how insurance works under the law of large numbers....the coverage from flood is not on homeowners policies...the individuals must choose to purchase separate coverage through private companies that might write the coverage or through government programs (national flood programs. It is always very simple after a loss to blame everyone else ( the democraptic mantra), that it was not explained or the individual did not understand that the coverage was not there if not purchased! Under the law of large numbers, insurance companies will spread the risk among a large number of similar potential victims to promulgate rates and premiums...if the pool is too small or very high in potential catastrophic exposure..the premiums will be high..that is when people such as the katrina victims would choose not to purchase the insurance...it is much easier to blame everyone else and in the end...of course, it is Bush's fault....but for everyone else, be very concerned...1) tax $$$'s will bail out these "victims" to be pc 2) referring to that law of large numbers...all others will pay higher costs in the future!!!...kind of what piaps and the dems have in mind for all middle class tax payers come 01/01/2009!!!!!
First of all, the "O'Briens" can never be relied upon to report the facts, and the facts only. They always seem determined to 'emphasize', 'stress', 'slant' and 'proclaim.' However, for the record: Insurance compainies always seek to underpay claims; claiments always seek to inflate claims. Ergo, compromise is often the only fair measure.