State Farm Insurance - Like A Good Neighbor, Pulling Out Of Mississippi

Like a bad neighbor, State Farm Insurance turns its back on Mississippi. After fighting tooth and nail to avoid paying claims in the state that was ravaged by Katrina, they now decide to pull out completely. Having spoken with residents of Mississippi myself, I can tell you that there is a battle still going on long after the hurricane about insurance settlements.

Many homes that were swept clean of their foundations have still not been settled. State Farm insists that it was flood damage and they do not cover that, and the flood insurance folks claim it was wind damage and they don’t cover that. In the meantime, hundreds of families are without their homes and unable to do anything about it. Courts are clogged with lawsuits and more are on the way. Why? Because the companies that many residents trusted for their insurance refuse to pay up now that there are claims.

The company claims it is those lawsuits that prompted them to make the decision to discontinue writing new policies in the state. Funny how it is their own intransigence that caused the suits. What better way to take the money and run? Write policies you have no intention of covering and once the claims come in, refuse to pay. When you are hauled into court, just leave the state! Ah the joys of being a big corporation, all the benefits of corporate personhood (for political contributions) and all the protection of corporate irresponsibility.