Mississippi Attorney General Jim Hood announced the settlement of the state's breach of contract suit against State Farm, which was filed after State Farm refused to comply with a January, 2007, Hinds County Chancery Court settlement.
Due to the state's suit against several insurance companies, State Farm has paid an additional $74 million and Nationwide has paid an additional $40 million to Coast policyholders. As a result of the settlement, State Farm will send out new notices to the remaining 148 slab and/or pier only policyholders, who have not yet sued, settled or already participated in the reevaluation process.
This settlement agreement includes additional benefits for the remaining slab/pier only policyholders, who were eligible to have their claims reevaluated, but have not done so. State Farm has agreed to send these 148 policyholders new notices that will inform them how they can still participate in the reevaluation process, if the policyholder submits the enclosed reevaluation form postmarked by August 29, 2008. In accordance with the Attorney General's original agreement with State Farm, these offers are guaranteed to total no less than 50% of Coverage A limits, subject to policy limits and prior payments.
