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Posted: 3:34 a.m. Tuesday, Sept. 10, 2013

Insurance companies sue troubled Narconon of Georgia

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By Pete Combs

Insurance companies that once issued liability policies on a Scientology-related drug rehab program based in Norcross are now trying to cancel those policies in a move the state insurance commissioner said could leave the families of patients high and dry.

Evanston Insurance and Western World Insurance are both suing, saying Narconon of Georgia not only lied to its customers, but lied to them when it took out liability policies.

“The insurance company is simply saying, ‘if they committed fraud, then we’re not going to insure them,’” said Jeff Harris, who has filed a class action suit against Narconon on behalf of five families whose loved ones were treated at the Norcross facility.

“There (are) grounds to discontinue the coverage if (Narconon) obtained the coverage through misrepresentation,” said Georgia Insurance Commissioner Ralph Hudgens.

But the real question is, if a judge does allow Narconon’s insurance companies to back out, what happens to the people whose claims against the organization could be worth millions?

“They’re going to be left holding the bag,” Hudgens said. “But there’s not going to be anything left in the bag.”

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