WASHINGTON–A spokesman for State Farm said that although the company is cooperating with a federal investigation into the handling of flood claims in the wake of Hurricane Katrina, unlike other insurers it has not been notified to expect a subpoena.
The investigation by the Department of Homeland Security Inspector General's Office has been "going on for a few months," noted State Farm spokesman Phil Supple.
An inquiry into claims handling is being done at the request of Congress, which made language directing the probe part of the department's appropriations bill.
That provision was inserted by Sen. Trent Lott, R-Miss., who at the time was suing State Farm over a Hurricane Katrina claim. Both Nationwide and Allstate have received subpoenas in the inquiry.
Mr. Supple said that after discussions with the company's attorneys, "to our knowledge we've not been notified" of any subpoenas to be sent to the company. However, he noted that State Farm has been working to provide investigators with what the information they ask for.
"We've been asked to provide documents, and we've complied," he said, adding that investigators were also given access to employees for interviews. "We've cooperated fully," he said.
State Farm is among the largest home insurers in Mississippi, and in addition to Sen. Lott the company was sued by Rep. Gene Taylor, D-Miss.
Once the study has been completed, the department will report its findings to Congress, which could lead to further action.
Allstate disclosed that it had been told to expect the subpoena from the Inspector General in a filing the company made with the SEC on May 3.
Marty Metelko, a spokesperson for the Homeland Security Inspector General's Office, said she could not confirm or deny Allstate's claim, citing official policy. Ms. Metelko declined further comment, again due to official policy, other than to say the office is conducting the investigation as was mandated by Congress.
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