JACKSON — Mississippi Attorney General Jim Hood said Wednesday that his office has settled its dispute with State Farm Insurance Cos. over how the insurer handled Hurricane Katrina damage claims in Mississippi.
State Farm has complied with a January 2007 agreement with the state by reopening some claims and agreeing to pay more than $74 million more to Gulf Coast policyholders whose homes were damaged or destroyed by Katrina’s storm surge, Hood said in a news release.
Hood said the insurer also has agreed to notify nearly 150 more State Farm policyholders who haven’t sued or settled their claims that they can still have their cases reevaluated.
Hood had sued State Farm, alleging the company failed to honor the January 2007 agreement, which called for Hood to end a criminal investigation into how Katrina claims were handled and for the insurer to pay millions more to policyholders.
State Farm spokesman Fraser Engerman said settling the attorney general’s lawsuit is another milestone in the company’s efforts to resolve “all pending matters related to Katrina.”
Hood’s January 2007 deal with State Farm was part of a broader settlement with private attorneys for policyholders that called for the company to reopen and possibly pay thousands of claims.
When a federal judge refused to sign off on that pact, State Farm later entered into a separate agreement with George Dale, who was then Mississippi’s insurance commissioner. Hood has said the agreement with Dale didn’t satisfy his deal with State Farm because it didn’t require arbitration.
Hood claims the original terms of his agreement would have required State Farm to pay out much more in claims — up to $400 million. He said his deal called for a panel of arbiters to oversee the claims reevaluation process.
“Nevertheless, the additional $74 million paid by State Farm pursuant to the Mississippi Department of Insurance reevaluation program apparently meets the minimum payments required under our original state court settlement agreement,” Hood said.
The $74 million reflects the amount paid from claims reopened under State Farm’s agreement with the state insurance department, not the total the insurer has paid out in Hurricane Katrina claims in the state.
Engerman said State Farm finds it “perplexing that he (Hood) would take full credit for a program he opposed and was the foundation for the lawsuit he filed against us and has now just settled. However, we are pleased the attorney general understands State Farm has met its obligations under the agreement his office made” in January 2007.
State Farm filed its own lawsuit against Hood, claiming he violated his bargain to end the criminal probe. But the sides reached a confidential settlement in that lawsuit in February.
Local News
Miss. AG settles lawsuit against State Farm
- Local News
-
-
SAFETY DAY
Picayune Police officers made a visit to the First Baptist Church of Picayune’s preschool class for their Community Helpers Safety Day. During the event the kids got to meet police officers and trigger lights and sirens in patrol vehicles.
- Escapee caught in county Pearl River County Sheriff’s deputies have captured the inmate who escaped from Mississippi Department of Corrections custody on Friday after attending his father’s wake in Picayune.
- Council discusses which funds to spend first On the same day as the ground breaking for the addition to the historic City Hall, city council members discussed which funds to spend first in its construction.
-
Poplarville aldermen honor Holliday, get audit report briefing
The city board of aldermen honored former District Three Supervisor Hudson Holliday at its Tuesday night meeting.
Mayor Billy Spiers presented Holliday with a framed resolution of appreciation for his dedication and service to the city while serving as county supervisor.
-
MRI INSTALLED
This $1.2 million Magnetic Resonance Imaging equipment was installed at the new location of Highland Community Hospital.
-
Hall suspected of robbery after escaping
A man who escaped from jail after attending his father’s wake is suspected of having carried out an armed robbery on the Texas-Arkansas state line. Johnny Hall escaped from Mississippi Department of Corrections custody on Friday while attending his father’s wake in Picayune.
-
City Hall expansion groundbreaking held
A groundbreaking ceremony was held Tuesday at the construction site for the expansion of the historic Picayune City Hall. “You can see our future when you look down Goodyear Boulevard. You see Chimney Square, our high school, The Link at First Baptist Church, Jack Read Park and then our historic City Hall.
-
PRC athletic director says he’ll recommend random drug testing
Pearl River Central athletic director Andy Kivlan told the school board at its Monday night meeting that he will most likely recommend that students participating in extracurricular activities, including band and ROTC, be subject to random drug screening.
-
Supervisors adopt resolution encouraging more economic development in South Miss.
Following a short presentation by State Sen. Tony Smith (R-Picayune), the board of supervisors adopted on Monday a resolution encouraging state officials and agencies to exercise “fairness and parity” regarding location of new industries in Mississippi.
-
MDEQ wants comprehensive waste disposal plan from county
The Mississippi Department of Environmental Quality has told Pearl River County it wants a comprehensive waste disposal plan for the county. Supervisors indicated at their Monday meeting that they are not happy with the request.
- More Local News Headlines
-
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
