NEW YORK--Reacting to a report yesterday that State Farm is nearing a major Mississippi agreement over hurricane claims, Mississippi Insurance Commissioner George Dale said the justice system forces insurers into settlements for the wrong reasons.
Mr. Dale said a resolution has not been reached by State Farm, which is in settlement talks with attorneys contesting the insurer's denial of hundreds of homeowners' claims resulting from Hurricane Katrina.
"I think there's something wrong with our system when the parties involved say, 'We will settle because in the long run we will save money,' [rather than] speaking to the issue of what's right and what's wrong," he said.
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