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Suit accuses State Farm of fraud
This is from your neck of the woods, Buster. It's all over the papers. This link lists all of the related stories. I guess this will give the attorney general something to do besides investigating sex toy crimes.
Quote:
BAY ST. LOUIS — A couple that got conflicting reports from an engineering firm regarding how one of their homes was destroyed during Hurricane Katrina filed a lawsuit Wednesday accusing State Farm Insurance Co. of manipulating those reports to deny their claim.
The lawsuit, which comes as Mississippi's attorney general says he's investigating insurance companies for "fraudulent" handling of post-Katrina claims, is one of many spawned by a fierce debate over whether homes were destroyed by the Aug. 29 hurricane's wind or water.
In this latest case, Terri and William Mullins have two conflicting reports done by the same engineering firm.
The first report, dated Oct. 23, found the couple's two-story home in Kiln, a rural community near the Mississippi-Louisiana border, was destroyed by hurricane-force wind, damage their policy covered. On Jan. 3, however, the firm issued a second report that blamed the damage on the storm's flood waters.
State Farm used the second report as the basis for denying the Mullins' claim. Insurance companies say their homeowners' policies do not cover damage from rising water, including wind-driven water, but policyholders argue that storm surge should not be considered flooding.
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