Court: Mississippi lawsuit over Katrina claims stays alive

JACKSON, Miss. (AP) - The Mississippi Supreme Court won't dismiss a state lawsuit against an insurance company over Hurricane Katrina claims.

The Sun Herald reports Attorney General Jim Hood's lawsuit against insurance giant State Farm Fire and Casualty Co. may go forward. The lawsuit was filed nearly 10 years after Katrina left a wide swath of destruction.

Hood's lawsuit says State Farm owes Mississippi millions of dollars. It contends the company delayed payments so that the state's federally funded Homeowners Assistance Program would cover the losses.

The suit says Mississippi paid 6,810 policyholders five times more than State Farm did for Katrina damage.

The lawsuit claims Mississippi paid $522 million to State Farm policyholders for Katrina damage, while State Farm paid $98.7 million.

The company sought to have the lawsuit dismissed.