Proposed State Farm deal is partially rejected
A federal judge in Mississippi refused to endorse part of a proposed settlement that calls for insurance payments to thousands of his state’s policyholders whose homes were destroyed or damaged by Hurricane Katrina.
U.S. District Judge L.T. Senter Jr. would not sign off on a deal between Bloomington, Ill.-based State Farm Fire & Casualty Co. and Mississippi Atty. Gen. Jim Hood for at least $50 million in payments to policyholders whose claims were denied but didn’t sue the company.
Senter rejected the settlement “without prejudice,” allowing lawyers to present a new agreement that satisfies his concerns.
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