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Mississippi Attorney General denounces State Farm
Issue date: 2/19/07 Section: National News
JACKSON, Miss. (MCT) - Mississippi Attorney General Jim Hood is proposing legislation to force insurance companies to continue writing new homeowners and business policies in the state.
At a Friday press conference, Hood also called on his political foe, Republican Gov. Haley Barbour, and State Insurance Commissioner George Dale to "issue emergency executive orders" to require companies to continue writing insurance and prohibit them from canceling policies until the Legislature can act.
Hood said his legislation and his request of Barbour and Dale are modeled on legislation passed last month in Florida and executive orders issued by Gov. Charlie Crist and that state's insurance commissioner. The executive orders in Florida are now subject of a lawsuit filed by an insurance industry group.
Hood's announcement comes after State Farm Fire and Casualty Co.'s decision Wednesday to stop writing new homeowners and business policies in Mississippi. The company has been sued by policyholders and criminally investigated by Hood after denying thousands of Hurricane Katrina claims. The company says its policies do not cover wind damage when it is inseparable from storm surge.
Hood said with State Farm, "we are looking a robber baron in the face," and accused them of "decadence" and operating "something like a cult." Hood wrote letters about his proposal to Barbour and Dale, and said he has discussed it with House Speaker Billy McCoy.
Late Friday afternoon, Barbour responded to Hood in a letter, saying "Having considered my statutory and constitutional emergency powers, including the statute you cited in your letter, I have no authority to force a private company to sell its products in the state of Mississippi."
Lee Harrel, deputy commissioner for the state insurance office, said Hood and the state need to "proceed with caution."
Harrel said that Florida's legislation does not appear to be a cure-all.
"We welcome any solutions to ways to ensure all Mississippians have available a stable, affordable and viable insurance market. I have not heard from General Hood regarding his proposals," Dale said in a statement to the media.
Hood's proposal would require insurance companies selling automobile insurance in Mississippi to also sell homeowners and commercial policies statewide, provided they offer such policies in any other state.
At a Friday press conference, Hood also called on his political foe, Republican Gov. Haley Barbour, and State Insurance Commissioner George Dale to "issue emergency executive orders" to require companies to continue writing insurance and prohibit them from canceling policies until the Legislature can act.
Hood said his legislation and his request of Barbour and Dale are modeled on legislation passed last month in Florida and executive orders issued by Gov. Charlie Crist and that state's insurance commissioner. The executive orders in Florida are now subject of a lawsuit filed by an insurance industry group.
Hood's announcement comes after State Farm Fire and Casualty Co.'s decision Wednesday to stop writing new homeowners and business policies in Mississippi. The company has been sued by policyholders and criminally investigated by Hood after denying thousands of Hurricane Katrina claims. The company says its policies do not cover wind damage when it is inseparable from storm surge.
Hood said with State Farm, "we are looking a robber baron in the face," and accused them of "decadence" and operating "something like a cult." Hood wrote letters about his proposal to Barbour and Dale, and said he has discussed it with House Speaker Billy McCoy.
Late Friday afternoon, Barbour responded to Hood in a letter, saying "Having considered my statutory and constitutional emergency powers, including the statute you cited in your letter, I have no authority to force a private company to sell its products in the state of Mississippi."
Lee Harrel, deputy commissioner for the state insurance office, said Hood and the state need to "proceed with caution."
Harrel said that Florida's legislation does not appear to be a cure-all.
"We welcome any solutions to ways to ensure all Mississippians have available a stable, affordable and viable insurance market. I have not heard from General Hood regarding his proposals," Dale said in a statement to the media.
Hood's proposal would require insurance companies selling automobile insurance in Mississippi to also sell homeowners and commercial policies statewide, provided they offer such policies in any other state.
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