Nationwide Insurance, which agreed in April to reevaluate claims of homeowners whose houses were torn from their foundation slab by Hurricane Katrina, has paid an additional $25 million to Mississippi residents, regulators said.
Insurance Commissioner George Dale's Wednesday announcement of the payment figure said Nationwide had over 11,000 claims filed in three Mississippi coastal counties after Hurricane Katrina, and has paid in excess of $300 million in claims. Of the claims filed, there were 641 slab cases or near-slab cases that were reevaluated.
Of these 641 slab claims, 532 have been resolved, which would indicate a success rate of approximately 83 percent. With regard to the remaining 109 slab claims, negotiations are ongoing.
Mr. Dale's announcement came a week after a civil racketeering case was filed against State Farm, claiming in part that the insurer used contrived inspection reports in the course of settlement mediations conducted by the Mississippi Insurance Department between State Farm and policyholders with Hurricane Katrina claims.
Before mediation sessions were held, it was charged that State Farm attorneys gave their witnesses scripted dialogue "to demoralize policyholders and create the impression that no degree of forensic evidence would convince the insurer or its adjusting firm to pay the full value of their insured hurricane damages."
The Nationwide reinspection arrangement with the department "is proof positive that the reevaluation process works, contrary to allegations voiced by headline seeking critics of the process," announced Mr. Dale.
He said the insurer had voluntarily gone back and reviewed "every slab claim they had, re-read every report filed, with new adjusters, and as a result many of their policyholders received additional claims payments, even if their claim had already been closed."
"I am extremely pleased that more and more coastal policyholders are finding closure and have had money placed directly into their hands so they may begin the long process of healing and rebuilding," he added.
His department noted that Nationwide continues to write policies with wind coverage on the Mississippi Gulf Coast in some instances and under certain conditions.
Mr. Dale added that his office is continuing to work with insurance companies daily to settle or reexamine their outstanding Katrina claims, as well as working to bring new companies to write policies in Mississippi.
"It is a delicate and time-consuming process, as illustrated by our work with Nationwide," he said. "We worked with them for months, and thanks to our determination and perseverance, over 500 more coastal policyholders can move on. We plan to use that same determination to help every policyholder on the Gulf Coast."
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