AIG Sued Over Katrina Inaction
National Underwriter
October 17, 2005

A Louisiana attorney has filed a prospective class action against American International Group on behalf of AIG policyholders with Hurricane Katrina damage, charging the carrier failed to properly treat policyholders.

Ray Orrill brought suit in Civil District Court for the Parish of Orleans in its relocated office in Gonzalez, La., on behalf of Tony Swain Orrill, his wife, from whom he is legally separated

The action against New York-based AIG and its subsidiary, Audubon, charges that the company has failed to help its policyholders in need of assistance after the hurricane. The filing was announced by the Americans for Insurance Reform in New York.

AIG and Audubon are underwriters and service providers of the Louisiana Citizens FAIR Plan, the insurer of last resort for people in New Orleans and the surrounding area. The class action is on behalf of Louisiana's FAIR plan policyholders, whom Mr. Orrill said number about 400,000.

The suit alleges that AIG failed to provide any way for its policyholders whose homes have been damaged to initiate a claim, reach its offices to find out how to file, or to provide temporary disaster relief provided under their policies.

Mr. Orrill said his wife's house in Covington, La.-a rural area on the opposite side of Lake Pontchartrain from New Orleans-was struck by trees, making it inaccessible, and that she is currently without income. He said she had made 70 calls to the company and had been unable to reach a live person to file her claim.

For a copy of the complete article, contact AIR.