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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCongress: taxpayers to pay insurance companies' costs of BP disaster in Gulf
Found this in an article from Alabama news paper:
the key point is buried towards the bottom of the article, as usual.
"But on Friday, Congress approved legislation to send most of the money that (insurance) companies will have to pay because of the 2010 oil spill, which is expected to total between $5.4 billion and $21.1 billion, to Alabama and other Gulf Coast states."
http://blog.al.com/live/2012/06/insurance_commission_nears_fin.html#incart_river_default
So, BP and Halliburton do not pay for the mess they made.
Insurance companies do not pay for the claims.
The taxpayer pays...again.
Sure glad the country can afford this.
WCGreen
(45,558 posts)Topsy Turvy time...
snot
(10,538 posts)I'll do it.
dixiegrrrrl
(60,010 posts)tomp
(9,512 posts)....NOT.
Orrex
(63,224 posts)Where does it say that BP and its insurers win't be paying? It looks to me lile they're saying that most of the money paid by the companies will be sent along to the states hit hardest by the disaster. In particular, it looks like money will be used to help those residents who weren't/aren't able to afford insurance.
What am I missing?
AllyCat
(16,222 posts)"They [officials] have met several times and have told us that they intend to informally commit $200 million to the insurance challenges in Alabama," Russell said.
So the taxpayers will pay $200M to the insurance industry is the way I read that.
It's not very well written though and hard to tell who "They" are.
pipoman
(16,038 posts)$200m to pay legal fees in the fight with insurance companies over denied claims..in this context, "challenge" usually is a reference to civil court action...I may be wrong..
Orrex
(63,224 posts)I'm seeing it as the intent to commit $200M directly to the states, with the money coming from the amount that BP and its insurers are paying for the spill.
I hope that's what it means, anyway...
dixiegrrrrl
(60,010 posts)and the coffee has kicked in
it is possible to read it one of several ways.
Gonna go hunt for an article less opaque.
AllyCat
(16,222 posts)bluedigger
(17,087 posts)The money from the insurance companies is going to restore the Gulf.
http://www.audubonaction.org/site/MessageViewer?em_id=21783.0&printer_friendly=1
http://gulfoilspill.audubon.org/citizens-guide-restore-act
The Restore Act is good legislation.
dixiegrrrrl
(60,010 posts)The article I cited IS confusing.
toddwv
(2,830 posts)Remember when that Solyndra sun tanker broke up on the rocks?
Or when that wind freighter crashed on I96?
We were stuck with the bill for that too...
-------------------
In all serious though, while I don't doubt for a minute that BP is getting off the hook for a large share of the expenses related to the environmental fiasco, the article is stating that money is being collected at the federal level and will be sent to the states that were affected.
I don't see anything wrong with that part.
dixiegrrrrl
(60,010 posts)Indeed.
"Although repeatedly trumpeting the $20 billion figure, BP has paid out only $8.1 billion from the trust administered by Kenneth Feinberg. "
http://www.forbes.com/sites/robertwood/2012/03/06/will-bp-oil-spill-victims-pay-tax-on-7-8b-settlement/
4th law of robotics
(6,801 posts)dixiegrrrrl
(60,010 posts)Insurance has changed the way it settles claims, and there are more and more problems with getting claims settled,
with class action lawsuits becoming more common.
Allstate and State Farm have been especially prone to make headlines down here for refusing to pay out in the wake of hurricanes and tornadoes.
Unfortunately, insurance is required if you have a mortgage, or a business, or a car, and now apparenlty required to have health insurance.
So, if indeed the article I posted means Congress will direct insurance companies to pay for BP damage that is a good thing ( but I still think 200 million is not going to be enough)
4th law of robotics
(6,801 posts)so I guess as businessmen they know what they're doing.
Not so great for the insured.
valerief
(53,235 posts)ProSense
(116,464 posts)"Congress: taxpayers to pay insurance companies' costs of BP disaster in Gulf"
...accurate. The word "insurance" in the snip is not in the original OP article. Still, the money refers to the fines BP pays.
Its going to be a tremendous down payment for the challenges of the Gulf Coast, Democratic Sen. Mary Landrieu of Louisiana, a lead sponsor of the bill, said on the Senate floor.
The RESTORE Act was approved as part of a larger, bipartisan transportation bill. The bill passed the House 373-52 and the Senate 74-19. President Barack Obama is expected to sign it into law.
RESTORE -- for Resources and Ecosystems Sustainability, Tourism Opportunities and Revived Economies -- will steer 80 percent of the BP Plc fine money to Alabama, Florida, Louisiana, Mississippi and Texas to help the states recover from the spill, economically and environmentally.
http://www.thetowntalk.com/article/20120629/NEWS01/120629023
valerief
(53,235 posts)McCamy Taylor
(19,240 posts)robinlynne
(15,481 posts)ProSense
(116,464 posts)pointing out that the OP is inaccurate is irrelevant.
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=887172