BISD Sues Insurers For Ike Claim Payments

Beaumont ISD has filed suit against its insurance carriers in an ongoing disagreement about how much the district is owed for its claims for damages from Hurricane Ike.

The district says that the insurers have had ample time to make an adjustment on its claim, while a representative of the insurers says the district hasn't provided all of the necessary documentation to process the claim.

The district seeks a judge's order for the appointment of two appraisers and an "umpire" to mediate a dispute about the amount of its claim.

There are eight defendant insurance companies or agencies, led by Atlanta-based RSUI Indemnity Company, named in the dispute.

The district filed suit Friday in Jefferson County District Court.

Some of the defendants transferred the lawsuit to federal district court on Tuesday, saying the case is within federal jurisdiction.

The Beaumont Enterprise asked Wednesday a representative of the district for the amount of the disputed claims, but by press time, the district had not responded.

The district proposes that James Mehaffy, a former Jefferson County state district judge and current attorney and mediator, serve as the umpire.

Beaumont ISD has named the following insurance carriers as defendants in a lawsuit about Hurricane Ike claim disputes:

RSUI Indemnity Co., Atlanta, Ga.; Westchester Surplus Lines Insurance Co., Roswell, Ga.; Lloyd's Syndicate, London, England; Lantana Insurance Ltd., Pembroke Parish, Bermuda; Underwriters at Lloyds of London; Arch Specialty Insurance Co., Omaha, Neb.; Frost Insurance Agency, San Antonio; and CRC Insurance Services Inc., Houston.

Read more in Thursday's Beaumont Enterprise.

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