Mississippi Attorney General Jim Hood announced the settlement of the state’s breach of contract suit against State Farm. Hood said the suit was filed after State Farm refused to comply with a January 2007 Hinds County Chancery Court settlement.
Due to the state’s suit against several insurance companies, State Farm paid an additional $74 million and Nationwide paid an additional $40 million to coastal policyholders, according to Hood. As a result of the settlement, State Farm will send out new notices to the remaining 148 slab and/or pier only policyholders, who have not yet sued, settled or already participated in the reevaluation process, he added.
The Hinds County Chancery Court settlement required that State Farm establish an administrative procedure under a federal court’s approval to reevaluate policyholders’ claims in Hancock, Harrison, and Jackson counties. It also required State Farm to make new offers to its policyholders for no less than 50 percent of coverage limits to slab or pier only claims, subject to policy limits and prior payments.
Eligible policyholders who complete their reevaluation forms by Aug. 29 will receive an offer from State Farm, Hood said. Those policyholders will have 21 days from the date the offer is mailed to accept the offer, or it will be deemed rejected by the policyholder. The policyholder will still have 30 days from the date of actual or deemed rejection to pursue legal action, if desired, he added.
Source: Office of the Attorney General of Mississippi
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