Thursday, May 25, 2006; Posted: 5:47 p.m. EDT (21:47 GMT)
GULFPORT, Mississippi (AP) -- Provisions in a State Farm Fire & Casualty Co. policy that exclude certain damage from Hurricane Katrina are unenforceable, a federal judge in Mississippi has ruled.
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U.S. District Judge L.T. Senter Jr., in a ruling released Wednesday, said State Farm cannot rely on an "ambiguous" language in a clause that is used to introduce what is excluded from coverage in its policies.
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Senter said he found "the policy is ambiguous and its weather exclusion therefore unenforceable in the context of losses attributable to wind and rain that occur during a hurricane."
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On Thursday, more than 240 Gulf Coast homeowners filed a joint lawsuit against Nationwide Mutual Insurance Co. for refusing to cover property damage from Hurricane Katrina.
The federal suit, the latest in a string of similar suits that attorney Richard "Dickie" Scruggs has filed against several insurance companies, claims Nationwide routinely denied policyholders' claims without investigating whether Katrina's wind or water was responsible for damage.
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more:
http://www.cnn.com/2006/LAW/05/25/katrina.insurance.ap/index.html