Insurers ‘Dodged’ $500M Katrina Claims

Mississippi filed a lawsuit against the State Farm Fire and Casualty Co. on Tuesday, alleging that the insurer denied legitimate claims—just to have the state government pay in its stead. As a result, Mississippi paid out more than $500 million to people insured by State Farm. The suit comes after another one against the insurance giant, won by sisters who said it pressured engineers into falsely ruling that their home was damaged not by wind (which State Farm covers), but by floodwaters. "We are still reviewing the lawsuit filed earlier today, which was not expected considering what we have done in resolving claims as a result of Hurricane Katrina," spokesman Phil Supple told the AP.