Another interesting story from Anita Lee of the Biloxi Sun Herald about the working of the Mississippi Attorney General’s grand jury, which is inquiring about claims handling for Hurricane Katrina damage. Here’s a key paragraph:
Mississippi Attorney General Jim Hood, whose office is presenting evidence to the grand jury, has zeroed in on State Farm’s claims-handling practices, according to interviews and court records. The investigation has centered on whether State Farm minimized or denied claims without meeting its obligation to investigate the cause of loss.
When it comes right down to it, that’s more or less what Judge L.T. Senter Jr. said last week in giving a directed verdict in Broussard v. State Farm: that the insurer didn’t meet its burden of proving the flood exclusion with specific evidence.