In a major setback for insurers, a federal district court judge has ruled that a state court should hear a suit brought by Mississippi officials over property-casualty insurer denials of Hurricane Katrina claims based on flood exclusion policy language.
Jackson, Miss.-based District Court Judge Tom S. Lee said that while there is “federal interest in the subject matter and outcome in the suit,” ultimately the issues remain state-oriented.
Mississippi Attorney General Jim Hood filed the suit on Sept. 15 in Chancery Court of Hinds County in an attempt to compel insurance companies to cover damage created by wind-driven storm surge.
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