Lawsuit: Aid program paid claims State Farm wrongly rejected

April 21, 2015 11:27 PM

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Nearly a decade after Hurricane Katrina ravaged Mississippi's Gulf Coast, state government is suing State Farm Fire and Casualty Co., saying the insurer improperly denied homeowners' claims and allowed a state aid program to pay instead.

Attorney General Jim Hood filed the civil fraud suit Tuesday in Hinds County Circuit Court, saying Mississippi paid as much as $522 million to State Farm policyholders under the federally funded Homeowners Assistance Program.

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