Miss. AG settles lawsuit against State Farm

The Associated Press, 8/6/8

Mississippi Attorney General Jim Hood said Wednesday that his office has settled its dispute with State Farm Insurance Cos. over how the insurer handled Hurricane Katrina damage claims in Mississippi.

State Farm has complied with a January 2007 agreement with the state by reopening some claims and agreeing to pay more than $74 million more to Gulf Coast policyholders whose homes were damaged or destroyed by Katrina’s storm surge, Hood said in a news release.

Hood said the insurer also has agreed to notify nearly 150 more State Farm policyholders who haven’t sued or settled their claims that they can still have their cases reevaluated.