also Dwyer v. Fidelity Nat. Prop. & Cas. Co.
, 565 F.3d 284, 285(5th Cir. 2009). The private companies under WYO act as “fiscalagents” of the United States and are responsible for adjustment,settlement, payment, and defense of claims under the policies.44 C.F.R. § 62.23(d)-(g). Payments under the policies, however,“ultimately come from the United States treasury.”
, 565F.3d at 285.The damage caused by Hurricane Katrina resulted in atremendous number of NFIP claims. On account of this strain,FEMA relaxed the requirements for submitting proofs of loss toclaim flood damage. Specifically, when policyholders did notdispute the insurance company’s adjustment, FEMA waived theproof-of-loss requirement and allowed the claim to be paid on thebasis of adjuster’s reports.
See Monistere v. State Farm Fire &Cas. Co.
, 559 F.3d 390, 394-95 (5th Cir. 2009);
Eckstein v.Fidelity Nat. Prop. & Cas. Ins. Co.
, 07-4567, 2009 WL 1870558, at*4 (E.D. La. June 29, 2009).Branch Consultants brought this
action in 2006 onbehalf of the United States government under the False Claims Act(“FCA”). Branch accuses certain WYO insurance companies andadjusters that were involved in the adjustment of NFIP floodclaims after Katrina of fraud in the administration of the floodinsurance program. Branch alleges that the circumstances afterKatrina gave the defendants complete control over adjustments and
Case 2:06-cv-04091-SSV-SS Document 886 Filed 01/24/11 Page 3 of 68