Insurance Case in State Court

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Mississippi Attorney General Jim Hood says a decision could come within weeks now that the state's lawsuit against insurance companies for damage from Hurricane Katrina has been remanded to Hinds County Chancery Court.

Hood says the insurance companies used a delay tactic by taking the case to federal court.

Hood's lawsuit contends a standard homeowner's policy should cover hurricane damage, whether the loss is from wind or wind-driven water, a storm surge.

The suit specifically challenges an insurance clause that says hurricane coverage does not extend to flooding losses, including those caused by high tides and storm surge.

Insurance companies said homeowners should have bought additional flood protection.