Insurer Settling Katrina Suits

State Farm Fire & Casualty Co. agreed Tuesday to settle hundreds of lawsuits by policyholders and reopen thousands of other disputed claims, a deal potentially worth hundreds of millions of dollars to homeowners devastated by Hurricane Katrina, a company spokesman said.

State Farm spokesman Phil Supple said the company will reopen and review claims for policyholders on Mississippi's Gulf Coast whose claims were denied, but have not sued the company.

That part of the settlement could be worth hundreds of millions of dollars for roughly 35,000 policyholders, a person with direct knowledge of the settlement said.

Insurer Settling Katrina Suits
Source: Hartford Courant