Attorney General Jim Hood files lawsuit against State Farm

According to an official release from the Attorney General’s Office, Attorney General Jim Hood has filed suit against State Farm Fire and Casualty Company in the Circuit Court of Hinds County.

In the lawsuit, Attorney General Hood alleges “that State Farm systematically mischaracterized Katrina wind damage (which its policies covered) as flood damage (which its policies did not cover), improperly minimizing its own financial burden and forcing that burden instead on to HAP. In doing so, State Farm caused Mississippi to pay hundreds of millions of dollars that the State otherwise could have allotted to other recovery efforts. Because homeowners who received funds from HAP subrogated their equivalent insurance claims to Mississippi, any funds recovered as a result of the lawsuit will be returned to the State.”…

…State Farm issued this statement:

We are still reviewing the lawsuit filed earlier today, which was not expected considering what we have done in resolving claims as a result of Hurricane Katrina.