State Farm Settles 103 Claims in Hurricane Katrina Losses
State Farm Fire & Casualty Co. announced that it has settled 103 cases with the Merlin Law Group over claims stemming from Hurricane Katrina.
Fraser Engerman, a State Farm spokesman, said: "We are pleased that we were able to settle these claims without further costly and lengthy litigation. We continue to hope we can resolve other claims still outstanding in the same manner."
The Merlin Group still has several lawsuits pending against the company.
The settlement agreement was signed before a late August ruling from the 5th U.S. Circuit Court of Appeals in the case of Leonard vs. Nationwide. The ruling validated policy language that excludes coverage for wind damage when it occurs simultaneously with destruction from tidal surge, covered under federal flood policies.
State Farm has maintained that its policies cover wind damage only when it is "discernible" and separate from water damage. The 5th Circuit has heard arguments about whether State Farm can exclude coverage for wind damage when water contributes, but has not yet ruled.
Published on September 19, 2007
Are you a retail Agent Looking for a Quote?