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Katrina Insurance Trials, Settlement Talks Underway

By Admin on January 09, 2007 8:39 AM

Court trials have begun this week in Mississippi, in two of the thousands of cases filed over the insurance industry's handling of claims in the wake of Hurricane Katrina, according to an Associated Press (AP) article. The AP also reports that settlement negotiations are underway between State Farm Insurance and Mississippi's Attorney General, in an attempt to resolve a civil lawsuit filed against the insurer by the State of Mississippi, charging State Farm with wrongful refusal of claims filed by policyholders in the aftermath of Katrina. Hurricane Katrina struck the Gulf Coast on August 29, 2005. Many policyholders allege that they received little or nothing in the way of payment for claims because the insurers wrongfully maintain that damages caused by Katrina's storm surge were not covered under most policies.

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