Statement of Chairman Barney Frank and Congressman Mel Watt on the Recent United States District Court Decision on Insurance Claims by Katrina Victims

Washington, DC - Last week, the United States District Court for the Southern District of Mississippi found that State Farm wrongfully denied claims by an insured homeowner and victim of Hurricane Katrina. Today, Barney Frank, Chairman of the House Financial Services Committee, and Congressman Mel Watt, the likely chairman of the House Financial Services Subcommittee on Oversight and Investigations issued the following statement on the court's decision:

"We have received from our Congressional colleagues who represent the Gulf Coast serious allegations of a failure in the insurance system to serve the purpose for which it was intended," said Reps. Frank and Watt. "We believe these allegations deserve appropriate attention and our Committee will be looking into these charges."