Report: No plan to mistreat Katrina policyholders

JACKSON, MS (AP) - A report by the Mississippi Insurance Department says State Farm Fire & Casualty Cos. had no plan to "systematically mistreat policyholders" after Hurricane Katrina.

State Farm spokesman Jonathan Freed says the report shows that allegations of fraud and abuse were baseless and the company corrected its mistakes when they were uncovered.

The report was released Thursday after a two year study. Among its findings:

  • Some claims were not handled appropriately, but the study found no specific violations of the Unfair Trade Practices statute and no pattern of violations of the insurance fraud statute.
  • There were questionable decisions and irregularities in handling claims, but no scheme or plan to systematically mistreat policyholders.

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