Mississippi's insurance commissioner has given State Farm until April 4 to answer charges that the company is ignoring evidence of wind damage and rejecting policyholders' claims for homes pushed off foundations by Hurricane Katrina.
Commissioner George Dale, in a letter to the company, said insureds complained that State Farm is telling them "even if a dwelling suffered wind damage prior to the arrival of storm surge, no claim payment for wind damage is due since the water would have washed the structure away anyway, notwithstanding damage caused by wind."
Mr. Dale said, "If this is State Farm's position, it is contradictory to representations made by State Farm to Department representatives."
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