Allstate, Nationwide Subpoenaed

A federal grand jury in Mississippi has subpoenaed Allstate and Nationwide in connection with Hurricane Katrina claims handling practices, both companies have confirmed.

Allstate spokesman Mike Trevino said the company was working with the U.S. Attorney's Office in Jackson, Miss., to comply with the subpoena.

In a regulatory filing the company said it "remains confident in its claim settlement practices following Hurricane Katrina and is committed to resolving all claims fairly and appropriately."

Nationwide spokesman Joe Case said the Columbus, Ohio-based company received the subpoenas during the past week.

"We feel strongly that Nationwide has appropriately adjusted all Katrina claims and we intend to be fully cooperative," he told the NU Online News Service.

Earlier this month Allstate confirmed that U.S. Department of Homeland Security had issued subpoenas in connection with Katrina claims.

That department oversees the National Flood Insurance Program, which some federal officials said received the brunt of claims from insurers who classified claims as flood water damage rather than wind.

Mr. Trevino said there was no issue of precedence for two subpoenas issued from separate federal agencies.

A spokeswoman for Duncan Lampton, U.S attorney for Southern Mississippi District, said she could not confirm the origins of any subpoenas.