Mississippi Attorney General Jim Hood said he will prosecute public adjusters reportedly claiming a connection with his office to convince homeowners they should join a lawsuit against insurers.
Mr. Hood announced he had received information from several Gulf Coast residents that they have been approached by people "posing as independent insurance adjusters representing that they work for, or in conjunction with the Mississippi Attorney General's Office."
According to Mr. Hood, after the approach is made, residents are asked to register for a lawsuit against carriers.
A spokesman for Mr. Hood, Jacob Ray explained in an e-mail that the scam artists involved in the activity are aware that the office has filed a suit against insurers "and are using the suit as cover to get people to provide personal information that can be used for identity theft."
Mr. Hood's announcement warned that no adjusters work for his agency, which has recently established offices in the three Gulf Coast counties to investigate and prosecute consumer complaints and insurance fraud.
Mr. Hood has filed suit against homeowners' insurers contesting their denial of damage claims arising from wind-driven water damage. Insurers say these are not compensable because they qualify as flood damage excluded in policy language.
"Our office is in no way working with adjusters to sign up Coast residents for a lawsuit. Our lawsuit against the insurance companies does not require anyone to sign up as a party. Those who continue to make these false statements will be prosecuted," warned Mr. Hood.
The attorney general's suit contends that flood exclusions are "procedurally unconscionable" and ambiguous, violate the state's Consumer Protection Act, and will harm the state and its citizens.
Insurers last month had the case moved to U.S. District Court in Jackson, Miss., arguing that it involved questions of federal law because federal flood insurance program questions are involved.
Mr. Hood's office in response filed papers on Oct. 5 asking to have the suit sent back to state court, saying none of its claims involve the National Flood Insurance Act or standard flood insurance policy language.
This report updated Sept. 19, 11:35 a.m.
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