State Farm Strikes Again

April Armani

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As if the horrors of Katrina weren't enough, imagine how Mississippi insureds feel.

This blogger has mentioned time and time again the horrors inflicted upon State Farm insureds in the aftermath of Katrina. Unfortunately their ordeal is far from over. Mississippi Attorney General Jim Hood sued State Farm today claiming that the company failed to honor a mass settlement agreement of claims over Katrina damage. "We filed this lawsuit in an effort to help the more than 30,000 Gulf Coast policyholders who have suffered for nearly two years because of State Farm's inaction," Hood said in a news release issued today. Fellow blogger Zach at the Scruggs Katrina Group Blog has same very interesting things to say about purported tactics State Farm is using to regain public favor given the fervor that it's actions have caused. "It has been suggested that State Farm has been ghost writing letters to the editors in Mississippi newspapers, in the very backyard of families who lost their homes in Katrina. For example, see this piece of thinly veiled corporate-speak. See also this letter in the Sun Herald (scroll down to the second letter). Interestingly, an exact replica of this letter appeared in the Clarion Ledger and the Hattiesburg American. Watch out for the same propaganda appearing in a newspaper near you."

Yet another example of an insurance company trying to take down the "little guy." Although this time it appears as if State Farm has bitten off more than it can chew.