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dixiegrrrrl

(60,010 posts)
Sun Jul 1, 2012, 09:26 AM Jul 2012

Congress: 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.

23 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Congress: taxpayers to pay insurance companies' costs of BP disaster in Gulf (Original Post) dixiegrrrrl Jul 2012 OP
And yet they don't want the government to kick in on health care... WCGreen Jul 2012 #1
Glad this was posted in GD, but it needs to be posted in the Alabama forum, too. snot Jul 2012 #2
thank you. dixiegrrrrl Jul 2012 #3
unbelievable.... tomp Jul 2012 #4
Help me out. Maybe just missing it... Orrex Jul 2012 #5
This part, last paragraph AllyCat Jul 2012 #8
I read that as pipoman Jul 2012 #10
Thanks! I'm hoping that you've misread it though Orrex Jul 2012 #11
Now that I have re-read the article dixiegrrrrl Jul 2012 #13
It's all part of socializing the losses. AllyCat Jul 2012 #6
I think you are misinterpreting this. bluedigger Jul 2012 #7
I see your point. dixiegrrrrl Jul 2012 #14
Yeah, well that's PEANUTS compared to Solyndra toddwv Jul 2012 #9
"BP is getting off the hook" dixiegrrrrl Jul 2012 #12
So what's the point of having insurance then? 4th law of robotics Jul 2012 #15
Over the last 10 years, not much. dixiegrrrrl Jul 2012 #16
Well they almost always turn a profit 4th law of robotics Jul 2012 #17
Corporate socialism at work. nt valerief Jul 2012 #18
That's not ProSense Jul 2012 #19
Where are the asswipes whining about deficits now? nt valerief Jul 2012 #20
Another bailout. McCamy Taylor Jul 2012 #21
wtf? robinlynne Jul 2012 #22
Clearly ProSense Jul 2012 #23

Orrex

(63,084 posts)
5. Help me out. Maybe just missing it...
Sun Jul 1, 2012, 09:53 AM
Jul 2012

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

(16,035 posts)
8. This part, last paragraph
Sun Jul 1, 2012, 09:59 AM
Jul 2012

"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)
10. I read that as
Sun Jul 1, 2012, 10:09 AM
Jul 2012

$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

(63,084 posts)
11. Thanks! I'm hoping that you've misread it though
Sun Jul 1, 2012, 10:11 AM
Jul 2012

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)
13. Now that I have re-read the article
Sun Jul 1, 2012, 10:26 AM
Jul 2012

and the coffee has kicked in
it is possible to read it one of several ways.
Gonna go hunt for an article less opaque.

toddwv

(2,830 posts)
9. Yeah, well that's PEANUTS compared to Solyndra
Sun Jul 1, 2012, 10:04 AM
Jul 2012

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)
12. "BP is getting off the hook"
Sun Jul 1, 2012, 10:22 AM
Jul 2012

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/

dixiegrrrrl

(60,010 posts)
16. Over the last 10 years, not much.
Sun Jul 1, 2012, 11:27 AM
Jul 2012

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)
17. Well they almost always turn a profit
Sun Jul 1, 2012, 11:30 AM
Jul 2012

so I guess as businessmen they know what they're doing.

Not so great for the insured.

ProSense

(116,464 posts)
19. That's not
Sun Jul 1, 2012, 11:42 AM
Jul 2012

"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.

WASHINGTON – Congress approved a long-awaited measure Friday that will give Gulf Coast states billions in fine money that BP will pay for the 2010 Gulf of Mexico oil spill.

“It’s 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


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