It appears that a settlement of many filed and potential CatClaims resulting from Hurricane Katrina in Mississippi has blown up. There was once a settlement agreement, among many policyholders and State Farm. The proposed settlement agreement was subject to Federal Court approval. The Federal Judge found wrong in the proposed settlement and refused to approve it. State Farm then reportedly reached a settlement agreement of many of the same claims with the Mississippi Insurance Commissioner's Office. This lengthy previous history was summarized in "Update to the Update: New Settlement in Mississippi," posted here on March 20, 2007.
It is now reported that through its Attorney General, the State of Mississippi filed suit on Monday, June 11, 2007 in Mississippi State Court. The Complaint alleges that State Farm breached the (first) settlement agreement and thus breached a contract, claiming compensatory and punitive damages. As of the night of June 11, 2007, there is a temporary silence on the subject on the web sites of both the Mississippi Attorney General and the Mississippi Insurance Commissioner.
Here is a link to State Farm's Press Release of June 11, 2007,which State Farm entitled "Mississippi Attorney General's Lawsuit Threatens to Disrupt Hurricane Katrina Settlement Process with MIssissippi Insurance Department".
There will be more to come on the settlement (or not) of Hurricane Katrina CatClaims in Mississippi, and elsewhere, there can be no doubt.
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