Miss. Federal Judge Remands Action Accusing Insurer of Mischaracterizing Windstorm Claims

JACKSON, Miss. — A federal judge has remanded an action in which the State of Mississippi is accusing a homeowners’ insurer of wrongfully underpaying and denying Hurricane Katrina claims, ruling that the lawsuit does not raise a substantial federal issue.

On Oct. 9, Judge Henry Wingate of the U.S. District Court for the Southern District of Mississippi further held that the National Flood Insurance Act does not preempt the claims because the Act does not provide a remedy for homeowners underpaid for their wind damage.

The State of Mississippi sued State Farm Fire & Casualty Insurance Co. in the …