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Was State Farm not a good neighbor when it came to dealing with the multitude of Hurricane Katrina losses in Mississippi? Did this dispute really have to end up in court? Or should the carrier have been more proactive and flexible in adjusting claims where the source of damage wasn’t clear?

I’ve heard grumbling within the industry that State Farm practically invited legal challenges and public scorn by the way it stiff-armed many claimants with wind-driven water damage. The result was another body blow to the industry’s already tarnished reputation, prompting retaliation by angry state and federal lawmakers.

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