Hurricane Ike hit Texas in September, 2008. The Federal Government immediately made $3,100,000,000.00 or $3.1 Billion available for reconstruction costs.
In the last 3 years, the State of Texas has administered all Hurricane Ike Claims at least for reconstruction costs. The Texas State Administrators have spent 98% "of its administrative money from the first round -- $12.3 million -- but only 17 percent of the money designated for projects." Manny Fernandez, "Extending the Miseries From a Storm / Texas Slow to Deliver Federal Housing Aid" p. 12, col. 5 (New York Times Nat'l ed., Sunday, October 2, 2011).
In Texas, all reconstruction costs for Hurricane Ike originate with Counties but are administered through State Administrative officials. The Counties complain that they fill out all the paperwork required by the State of Texas to process their proposed reconstruction projects, only to have the State change the rules after the applications are submitted. The State then rejects their applications until different information is provided. This change causes the Federal Government in turn to have to review every rules change by the State before it can approve the release of Federal Taxpayer money in accord with those new rules.
Of course, the Texas officials blame the Federal Government.
If an Insurance Company tried this, the Courts would fashion civil causes of action for Bad Faith claims handling. There does not appear to be a single reason why the State of Texas, and the officials responsible for this sort of claims handling, should be treated better than an Insurance Company.
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