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Mississippi Federal Jury Says State Farm Defrauded the NFIP

A federal jury has determined that State Farm Fire and Casualty Co. committed fraud against the federal government and submitted a false record to support fraud following Hurricane Katrina...
April 23, 2013

A federal jury has determined that State Farm Fire and Casualty Co. committed fraud against the federal government and submitted a false record to support fraud following Hurricane Katrina. The verdict is from a whistle-blower lawsuit, Rigsby vs. State Farm, and could lead to the examination of thousands of post-Katrina flood claims State Farm adjusted and paid before reimbursement by the National Flood Insurance Program (NFIP). Former insurance adjusters Kerri and Cori Rigsby presented evidence that State Farm paid policy limits of $250,000 for flood damage to a house in North Biloxi even though wind covered under the insurance company's policy was responsible for the loss; the jury concluded that State Farm overcharged NFIP the full $250,000.

State Farm is expected to file a motion asking the judge in the case to overturn the verdict or, in the alternative, grant a new trial. State Farm also has a counter-claim pending against the plaintiffs over insurance company documents they took after growing suspicious of how the insurer was handling claims.

Jury Finds State Farm Committed Fraud (Biloxi MS Sun-Herald 4/8/13)

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