Insurer conduct exam on hold

Insurance Commissioner Mike Chaney said he is delaying release of a market-conduct examination of State Farm to make sure the insurance company fairly treats policyholders whose Katrina claims remain unresolved.

Chaney said he is concerned about policyholders previously represented by attorney Dickie Scruggs and associated law firms.

A federal judge recently disqualified the attorneys, known as the Scruggs Katrina Group, from State Farm Katrina cases. They represented hundreds of policyholders and had 178 cases pending in federal court.

State Farm wrote to the policyholders April 29, after the judge’s decision, saying the company wanted to resolve any remaining issues without litigation and listing a telephone number.

Sun Herald
5/21/8