Mississippi Sues 5 Insurers Over Katrina Claims

BILOXI, Miss., Sept 15 (Reuters) - Mississippi Attorney General Jim Hood sued five major insurance companies on Thursday, saying adjusters sought to cheat Hurricane Katrina survivors out of millions of dollars in homeowners' claims.

According to Hood, adjusters for Nationwide Mutual Insurance Co. and others asked policyholders to sign forms that acknowledge they sustained flood damage, which is not covered by homeowners insurance.

Adjusters are cajoling victims to sign the forms, saying they are necessary to receive an immediate check for living expenses. Then the companies can use the sentence regarding flood damage against policyholders later, Hood said.

He named Nationwide Mutual Insurance Co., State Farm Fire and Casualty Co., Allstate Property and Casualty Co. and United Services Automobile Association as defendants. The complaint also allows more insurance companies to be brought into the suit since it also covers unnamed insurers.