Trent Lott: “I have introduced a bill requiring insurance companies to provide a written ``plain English'' explanation on the front…”

“I have introduced a bill requiring insurance companies to provide a written ``plain English'' explanation on the front page of each new homeowner's policy. It is a commonsense, customer-friendly service that could benefit insurers, consumers, and taxpayers, I cosponsored a similar measure during the last Congress. The changes from last Congress are minimal. The new bill, called the Homeowners' Insurance Nondisclosure Act, deals exclusively with homeowners' policies, the area where most insurance coverage disputes arose following Hurricane Katrina. Homeowners' policies are notoriously long, complicated, and written in legalese. Even for homeowners who are familiar with legal documents like mortgages and deeds, insurance policies are hard to understand. That is because these policies are a contract between two parties, defined in precise legal terms. In the case of homeowners' policies, most consumers depend heavily on their agents for a good-faith explanation. Yet, unlike a mortgage or deed, insurance policies are a competitive product purchased by consumers. While we can't erase complex legalese from an insurance document, I do think it is reasonable for insurers to provide their paying customers with a simple, concise explanation of their policy.”