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Mississippi Attorney General Jim Hood is attempting to leverage recent State Farm claim settlement activity in order to force the hand of other insurers who are facing criticism in the way they handled homeowners’ claims stemming from Hurricane Katrina.

State Farm last week agreed to settle more than 600 disputed homeowners’ claims in Mississippi after a verdict in Broussard v. State Farm found that there was insufficient evidence presented by the company to prove the loss was due to flooding only. The decision forced the company to pay the Broussards more than $220,000 for policy coverage and $2.5 million in compensatory and punitive damages.

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