State Farm testifies on infamous sticky note

More than seven years after Hurricane Katrina, former State Farm Claims Manager Lecky King for the first time publicly testified about an infamous sticky note she left on a homeowner’s Hurricane Katrina damage report.

Two former adjusters for State Farm, sisters Kerri and Cori Rigsby, claim in the federal trial at which King testified that State Farm defrauded the federal government. The Rigsbys’ accusations started with King’s sticky note.

Their lawsuit alleges State Farm shifted wind losses the company should have paid to flood damage the National Flood Insurance Program covered.

After Katrina, King faced management of 6,600 federal flood insurance claims and their companion State Farm Fire and Casualty Co. homeowner claims for wind losses. An engineering firm’s damage report on the McIntosh home in North Biloxi was one of the first King reviewed, she said, in October 2005.

Sun Herald
4/3/13