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Mississippi Attorney General Files Complaint Against State Farm for Breach of Contract
From: Office of Attorney General Jim Hood   Filed 6/11/07  GCN

Attorney General Jim Hood  today, June 11,  filed a complaint against State Farm Fire and Casualty Company for bad faith breach of contract related to the settlement agreement the two parties entered into on January 23, 2007. The complaint was filed in the Circuit Court of Hinds County.
 
"We filed this lawsuit in an effort to help the more than 30,000 Gulf Coast policyholders who have suffered for nearly two years because of State Farm's inaction," said Attorney General Jim Hood. 

"The State Farm  reevaluation procedure through the Department of Insurance has only  resulted in a little more  than  300 new offers.  That does not comply with the terms we have with them in black and white.  We have a state court order that they signed and then backed out on.  If  they  will breach a clear agreement with a State, then this is further evidence that they have breached their own policy provisions with their insured on the Coast."   

Attorney General Hood charges that State Farm has violated several specific terms of the settlement agreement, including their failure to: make "an offer of settlement to the policyholder based upon criteria and guidelines approved by the United States District Court for the Southern District of Mississippi"

"We are at  this point today because State Farm has intentionally and in bad faith acted with disregard toward the rights of its  policyholders," said Attorney General Jim Hood.  The complaint seeks compensatory and punitive damages from State Farm.


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