Katrina's commercial claims stall as disputes escalate.

One year after Hurricane Katrina, a substantial number of commercial insurance claims remain unresolved and tied up in litigation.

New lawsuits arising from coverage disputes continue to flood the courts. But John Eager, senior director of claims at the Property Casualty Insurers Association of America, said, "I wouldn't say it's all good news, but I think in the commercial area we can hold our head up and say we've settled some really tough claims, we've settled the majority of claims, we've done it with on-site adjusters, and for those businesses that had a continuity plan, they're up even faster."

Eager pointed to the industry's payout figure in and around Louisiana area, about $32 billion to date, as an indication that claims are being settled. "ff we projected the losses to be that high, and you look at the payout, that's very telling," he said.

Aon Corp. said feedback from its clients hasn't been that positive. Stephen Cross, chief executive officer of Aon Captive Services Group, said many clients are concerned about how the market is reacting to their claims.

Many of the riverboat casinos in the Mississippi/New Orleans region are having major problems collecting because they can't agree with carriers over the value of their business-interruption losses, said William Harris, chief operating officer at Aon Captive Services. The dispute is over how much of the property damage and lost business income was caused by wind vs. flood. Also, there are differences of opinion over the definition of "flood," he said.