Mississippi AG Sues State Farm
Posted Jun 12, 2007 11:02 AM CST
By Debra Cassens Weiss
Mississippi’s attorney general has filed suit against State Farm Insurance Co. for failing to honor an agreement to settle Katrina claims.
Mississippi Attorney General Jim Hood said the state is also considering whether to reopen a criminal investigation that he ended as part of the agreement, the Associated Press reports.
In January, Hood dropped State Farm from a lawsuit against several insurers after the Bloomington, Ill.-based company agreed to pay $50 million to policyholders who wanted to reopen claims. The settlement later broke down when a federal judge refused to approve it.
Since then State Farm reached an agreement with the state insurance commissioner to reopen claims.
State Farm criticized Hood’s action in a statement by Mike Fernandez, State Farm vice president of public affairs.
“Sadly, it appears that Mississippi's attorney general is more interested in making headlines in an election year than in making headway for the people of Mississippi," said Fernandez.