On June 9, 2009, the Mississippi Supreme Court heard oral arguments on the interpretation of “anti-concurrent causation” (ACC) clauses in homeowners insurance policies. The attorney for Nationwide, Christopher Landau, told the Supreme Court that Nationwide applies the ACC clause to exclude coverage of all damage caused by hurricane winds if subsequent flooding was sufficient to cause the damage.

In response to questioning, Landau answered that even if a house were 95 percent destroyed by winds before any flooding, Nationwide would owe nothing to the policyholder if the flooding was severe enough to have destroyed the house. USAA Attorney Greg Copeland even claimed that it was the intent of Congress when enacting the National Flood Insurance Program that the federal government should pay for all damage caused the combination of wind and flooding.

By Michael Newsom - Sun Herald, June 15, 2009
Congressional-Letter-to-Secretary-Locke

Citing environmental concerns and regulatory issues, U.S. Rep. Gene Taylor and 36 other U.S. lawmakers have asked the U.S. Department of Commerce to reject a controversial plan to allow fish farms in the Gulf of Mexico.

"Tremendous progress has been made to help the Gulf Coast region recover, but it is abundantly clear that communities are struggling to meet the challenges faced by the economy and the remaining challenges posed by Hurricanes Rita and Katrina," said Napolitano.

Rep. Gene Taylor, D-Bay St. Louis, said, "I know that several of our cities, counties, and school districts are still far below the revenues they had before the storm. They desperately need to have their loans forgiven. I thank Secretary Napolitano for taking this action and I am especially grateful to House Majority Whip Jim Clyburn for making Katrina loan forgiveness a priority when the Democrats took control of Congress in 2007."

An insurance company admitted to shifting its costs to the federal National Flood Insurance Program in the first wind versus water damage case from Hurricane Katrina to reach Mississippi’s high court.

Insurance company USAA made the admission in oral arguments before the Mississippi Supreme Court June 9 in a heavily watched case about whether carriers bear the burden of proof to decide the extent of property damage caused by wind and if carriers can void a homeowner’s wind coverage because of prior water damage.

“If the president can wait, I can wait,” Taylor said in a short interview. “We have to put the money where the priorities are.”