Mississippi Attorney General Jim Hood filed a lawsuit on Monday against State Farm Fire and Casualty Company for an alleged breach of contract. Hood claims the insurance company has failed to honor a settlement of claims stemming from damage caused by Hurricane Katrina.
Earlier in the year, Hood dropped a lawsuit against State Farm for it’s failure to cover damage caused by storm surge. He did so after State Farm had reached a $50 million settlement with more than 30,000 policyholders. However, a federal judge has refused to sign off on the settlement saying State Farm needs to provide more information regarding those who would benefit from the deal and how much money policyholders would be guaranteed.
The state is now seeking compensatory and punitive damages.
Sources: http://www.ago.state.ms.us/pressreleases/statefarm/sfbreach.pdf , http://www.time.com/time/nation/article/0,8599,1631550,00.html
