It Got a Spanking from the Court ---- Now State Farm Refuses to Write New Policies in Miss.
State Farm has made a lot of money in Mississippi over the years. Now that it has been "checked" by the civil justice system because of its failure to honor valid claims after Hurricane Katrina, it now is refusing to write new homeowners and commercial policies in the Gulf state.
Mississippi Attorney General Jim Hood sharply criticized the decision, saying State Farm had indicated in the past it would remain in Mississippi and continue to write homeowner policies. Hood said it was State Farm and not Mississippi that had created the problem by refusing to pay valid claims in the first place. "If they paid what they owed in the first place, there never would have been a lawsuit filed," Hood said.
State Farm has been sued by homeowners over its denial of claims resulting from the August 2005 hurricane that ravaged much of the Gulf area.