Thompson Puts State Farm on Notice
FOR IMMEDIATE RELEASE:
Friday, February 16, 2007
Today, Congressman Bennie G. Thompson (D-MS), Chairman of the House Committee on Homeland Security, issued the following statement concerning State Farm’s announcement that it will no longer write insurance policies in the State of Mississippi:
“As a State Farm policyholder, and a Member of Congress, I am deeply disturbed by State Farm’s actions. For a company that made a profit of $3.24 billion even in the year that Katrina struck to ask the American public to believe that it can no longer afford to do business in my home state is just ridiculous. For an industry expecting to make between $55 and $60 billion in profits in 2006 to say that it can’t insure me and my neighbors is despicable.
“Sadly, this is just the latest in a string of inexcusable actions by State Farm. We are just now starting to learn the lengths to which State Farm and other insurance companies went to stick the Federal Flood Insurance Program with the bill for Katrina claims that private insurance companies should have paid. Indeed, the timing of State Farm’s decision – just weeks after the announcement that my Committee and several others will be investigating their conduct – is itself disturbing.
“State Farm can rest assured that the Congress will be aggressively investigating and holding hearings on its conduct, as well as this decision. We will leave no stone unturned in exploring these matters. State Farm has proved itself not to be a good neighbor, but I can assure my fellow Mississippians that I will do everything in my power to be one.”
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FOR MORE INFORMATION:
Please contact Dena Graziano or Todd Levett at (202) 225-9978.
